Why You Should Avoid Using Checks

Once upon a time, popping checks into the mail was the go-to method for paying bills, sending monetary gifts, and even buying items. Now, financial experts estimate that using a check is perhaps the least secure way to make a payment and can give fraudsters and identity thieves easy access to your accounts.

How do checks put you at risk?

Sensitive Information and Identity Theft

Every check displays your bank account number, routing number, and often your address and phone number. If someone gets hold of a check, they have everything they need to gain access to your bank accounts or to give them a leg up on stealing your identity. From there, they can open additional accounts in your name and reap the benefits. If you pay with checks, all a fraudster needs to do is open a mailbox.

Check Fraud

Because they contain so much information, it's easy for criminals to use existing checks to commit fraud.

• Since checks require a signature, fraudsters can now forge your signature on other documents or counterfeit checks.
• They can also alter the amount of the existing check, or change the payee, to drain your account in a practice called "check washing."

Both of these practices also mean that fraudsters can create fake checks using your account details, which will give them unlimited access to your bank accounts and savings.

Lack of Real-Time Monitoring

And, unlike digital payments, checks don't provide instant alerts or fraud detection. You might not notice a problem until your bank statement arrives.

Protect Yourself

So, how can you protect yourself?

• Avoid paying with checks.
• Set up account alerts that inform you whenever a withdrawal is made on your account.
• Check your credit report regularly.
• Gift money using a secure digital payment service like Zelle^®.

And, if you or a loved one are a victim of fraud or identity theft, here are some steps you can take to seek justice and protect yourself in the future.