Mail-theft-related check fraud still plaguing local area

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CHAMPAIGN — If you've wondered whether it's safe yet to put mail in those outdoor U.S. Postal Service drop boxes, don't count on it.

Local police are still receiving reports of mail-theft-related check fraud, and at least one local bank has issued a fraud alert to its customers.

First Federal Savings Bank of Champaign-Urbana said the area is experiencing numerous types of fraud, including stolen mail and altered and counterfeit checks, and urged customers to quickly report it if it happens to them.

"The quicker you contact us, the faster we can try to limit the fraud," the bank said in its alert.

The son of one of First Federal's customers, who asked not to be named in this story, said his elderly mother was a victim of mail theft and check washing about two weeks ago. It happened after he deposited five of the bill payments she makes using checks in a post office drop box at the Old Farm Shops on the corner of Mattis and Kirby avenues in Champaign.

A few days later, he said, First Federal informed his mother that five of her checks had been stolen and washed — meaning chemicals were used to erase some of the writing on the check and change the amount (in this case, to $500 each) and the name of the payee.

First Federal discovered the fraud after the checks had been cashed in northern Kentucky and covered the loss for his mother, the man said.

Champaign Police Lt. Ben Newell said police still receive reports of mail theft and check washing.

"The reports that Champaign police have received include checks that are mailed to locations outside of the area, altered, then deposited electronically via mobile deposit," he said. "The individuals making the deposits do not often have local ties to our community and are in a different city or state."

Newell said Champaign police follow up with victims and investigate forgery cases directly when a local tie is found and also share information with the U.S. Postal Inspection Service.

The national surge in mail-theft-related check fraud prompted the federal Financial Crimes Enforcement Network to issue an alert to financial institutions earlier this year.

"Despite the declining use of checks in the United States, criminals have been increasingly targeting the U.S. mail since the COVID-19 pandemic to commit check fraud," the agency said.

The number of reports related to check fraud made by banks has been steadily rising since 2020, with more than 680,000 last year — double the number from 2021, according to the agency.

"There have been cases of Postal Service employees stealing checks at USPS sorting and distribution facilities," the federal agency said. "However, according to the USPIS (U.S. Postal Inspection Service), mail-theft-related check fraud is increasingly committed by non-USPS employees, ranging from individual fraudsters to organized criminal groups comprised of the organizers of the criminal scheme, recruiters, check washers and money mules."

The U.S. Postal Inspection Service declined to answer questions about the status of this issue in the area and any related investigation, but its Chicago office sent this statement:

"Though we will not provide specific details of open investigations, the U.S. Postal Inspection Service is investigating all leads, as they become available to us, regarding mail theft in and around the Champaign area."

First Federal's alert to customers included the following types of fraud being experienced in the area, along with some tips:

* Altered and counterfeit checks: Use a gel pen to write checks, examine your bank statements carefully and check your online bank account daily.

* Stolen mail: Take your mail inside the post office and never put it in a blue drop box outside.

* Fraudulent checks for deposit: Don't cash or deposit any check you receive in the mail from someone you don't know. It's a scam.

* ID theft: Never give a caller your Social Security number or account number.

* Request to access online banking: Nobody legitimate will ask you to log into your online banking or make a transfer to fix a problem.

* Request to make a wire transfer or large cash withdrawal from your account: This is never for a legitimate purpose.

* Requests to conceal activity from the bank: Any of the above, combined with a request by a caller to not tell the bank why you're conducting a wire or cash transaction, is a scam.