Thieves are using nail polish remover to wash stolen checks and it's a $1 billion problem willmilne/Envato Laura Boast Sun, June 21, 2026 at 3:45 AM PDT 6 min read Hearing the phrase the check’s in the mail used to be a good thing. Now it’s cause for concern all because of check washing, an old-school scam that has become big business. Every year, the U.S. Postal Inspection Service (USPIS) intercepts an estimated $1 billion in fraudulent checks and money orders. Must Read Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this explosion’ Millionaires under 43 hold only 25% of their wealth in stocks. Surprised? Here’s where their money is actually going Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 here are 5 ways to build wealth like a landlord without actually being one It’s easy. Thieves nab checks out of the mail and use nail polish remover or rubbing alcohol to erase the payee’s name and check amount, pen in a new name and amount and laugh all the way to the bank. This retro crime is even easier in the digital era. Crime rings sell stolen checks on the dark web in return for cryptocurrency. They hire money mules to deposit falsified checks into fraudulent accounts, according to NASDAQ Verafin (1). At the same time, bank employees are relying more on automated processes to cash checks and less on physical inspection, so they may miss the signs of fraud. All too often, fraudulent checks are cashed. That’s what happened to one California couple who shared their story with The Washington Post (2). They mailed a check to the Internal Revenue Service (IRS) to cover their taxes but the IRS never received it, and claimed the couple owed $12,000 in taxes plus interest. The couple didn’t understand what went wrong. We looked at our online Chase statement, and the check had cleared, the wife said. Then they examined a scanned image of the check online and discovered someone had removed the IRS as a payee and replaced it with another name. Check washing cleans money out of bank accounts When the California couple pointed out the fraud to Chase bank, they were told they’d missed the window for an investigation. But after the media got involved, the bank tracked down the account where the check was fraudulently deposited and recovered $11,000 for the couple. We’re pleased we were able to resolve this matter, Chase spokesman Jerry Dubrowski told the Washington Post. Check washing is a big concern around government checks, including Social Security checks and tax refunds. There’s a process to be reimbursed for stolen tax refunds if the Bureau of the Fiscal Service confirms that your refund check was fraudulently cashed (3). Story Continues But getting your money back when it involves a personal check is not so easy. Read More: Robert Kiyosaki has a grim warning for baby...
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