In recent years, check fraud has evolved, becoming increasingly sophisticated as criminals employ various tactics to deceive their victims. One such case involves Mrs. Phi Dang, a Chinese-American businesswoman who recently found out that the recipient on her check had been altered. The thief had stolen her mailed check and used high-tech methods to change the payee’s name. Unfortunately, because Mrs. Dang didn’t report the fraud within the timeframe set by her bank, she ended up losing over $10,000.

Mrs. Dang runs a family business specializing in small household appliances for retailers. It was a routine day when a supplier called her about an outstanding invoice, leaving her baffled. She had already sent a check for $14,000 for that payment, and the amount had already been deducted from her bank account. Upon further investigation, she realized that the name of the payee had been tampered with.

“I suspect the thief stole my check from the mail, altered the recipient’s name using a chemical solution, and then cashed the modified check at a bank,” she explained, visibly shaken. “I was really nervous — that’s a lot of money.” After she discovered what had happened, she promptly contacted her bank, Wells Fargo, to report the fraud. However, the bank informed her that because she hadn’t reported it within 30 days, she couldn’t recover her lost funds. Wells Fargo issued a statement expressing sympathy for her situation but emphasized that customers must “promptly file claims for suspected fraudulent transactions.”

Another Chinese-American resident, Celine, experienced a similar ordeal. She recounted mailing a check worth several thousand dollars, which was also stolen and altered, leading to a loss of $16,000 from her account.

According to data from the U.S. Treasury, check fraud cases have skyrocketed by 365% since the pandemic began, and banks often find it challenging to offer effective solutions.

Carola Sanchez-Adams, a senior attorney at the National Consumer Law Center, noted that many consumers realize they’ve fallen victim to check fraud only after it’s too late. She explained that while victims should notify their banks within a year, many banks limit this period to just 30 days in their account agreements.

To help steer clear of check fraud, experts recommend several precautions: hand-delivering checks when possible, regularly monitoring bank account transactions, and reviewing images of cashed checks to ensure the recipient’s name and amount remain intact.