Lost in the Mail?

Mail theft is a serious concern in the United States, with criminals intercepting checks “lost in the mail” through theft from the U.S. Postal Service and business mailboxes. For businesses that rely on mailing or receiving checks for financial operations, this issue can lead to significant financial losses and operational disruptions. Below, we’ll explore how these thefts occur, their potential impact and the steps your business can take to protect itself.

How Do Checks Get Stolen?

• Mailbox Fishing: Using tools to “fish” envelopes out of USPS blue collection boxes.
• Stolen Mail Keys: Criminals obtain or duplicate USPS master keys to unlock multiple mailboxes.
• Inside Jobs: Occasionally, theft may involve bad actors within the postal system or businesses handling mail.

How Are Checks Cashed?

• Alter the Payee Name and Amount: Using techniques like check washing, thieves erase ink from the check and rewrite it to make themselves or accomplices the payee.
• Commit Identity Theft: Stolen checks can reveal sensitive business information, including account numbers, addresses and signatures.
• Sell Stolen Checks Online: In some cases, stolen checks are sold on the dark web or through criminal networks for profit.

Signs Your Business May Be a Victim of Check Theft

Be on the lookout for these warning signs:

• Payments not reaching you from clients or checks you send not reaching vendors .
• Checks clearing your bank account for amounts or payees you don’t recognize.
• Bank account reconciliation discrepancies.
• Notification from vendors or suppliers about unpaid invoices.

Steps to Protect Your Business from Mailed Check Theft

Here are actionable steps your business can take to minimize the risk:

1. Switch to Electronic Payments: Transition to secure electronic payment methods such as ACH transfers, wire transfers or online bill pay. These methods are faster and more secure than mailing checks.
2. Use Secure Mailing Practices:
   • Deposit mail directly at the post office rather than leaving it in unsecured mailboxes.
   • Mail checks close to postal pickup times to reduce the risk of theft.
   • Use tamper-evident envelopes for added security.
3. Implement Positive Pay with Your Bank: Positive Pay is a fraud prevention tool that allows you to verify checks presented for payment against a list of checks you’ve issued.
4. Monitor Bank Accounts Regularly: Frequently review your account activity to identify any unauthorized transactions early.
5. Secure Business Mailboxes: If you receive checks by mail, ensure your mailbox is locked and secure.
6. Report Suspicious Activity Promptly: If you suspect check theft, report it immediately to your bank, the USPS and local law enforcement.

What to Do If Your Business Is a Victim

If your business falls victim to mailed check theft:

1. Contact Your Bank Immediately: Request a stop payment on the stolen check and monitor your account for any further suspicious activity.
2. File a Report with USPS: Report the theft through the USPS Inspection Service’s online complaint form or by calling their hotline.
3. Notify Law Enforcement: File a police report to create an official record of the theft.
4. Inform Affected Parties: Notify vendors, suppliers or other affected parties and arrange for alternative payment methods.
5. Strengthen Security Measures: Evaluate your existing payment and mailing practices to identify vulnerabilities and implement improvements.

By understanding the risks and proactively implementing security measures, you can protect your business from financial losses and operational delays that result from checks being lost in the mail. Being proactive today can save your business time, money and stress in the future.

Cultris Security

281-506-8466

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