Do you still write checks on your bank checking account, and send them through the US mail system? For many years, this method of cash transfer was considered safe, and was a basic part of everyone’s normal routine. However, with the evolution of online banking and improved user interfaces with financial platforms, the old method of sending a check through the mail could be setting you up for trouble.

The same advances in technology that make life so easy for us have also facilitated ways that fraudsters can steal your money. Here are three common theft tactics:

1. Check Washing
   Fraudsters steal mail from mailboxes and search for envelopes that may contain checks. If they find a check, they then use chemicals to erase details from a legitimate check and rewrite them for larger amounts or different payees.
2. Counterfeiting
   If a fraudster can get a copy of a legitimate check you have written, they can create fake checks using your account information, routing number, and your very neatly written signature.
3. Theft via EFT Transfers
   The account and routing numbers printed on your check can be used to initiate unauthorized electronic fund transfers (EFTs) or set up automatic payments without your consent.

I think of writing a check as something akin to walking down a dark alley in a bad part of town. It is something I avoid, if possible, but I proceed cautiously if I must go there. 

You may not have thought of check writing as a risky activity. I recommend you take a few moments and evaluate your practices for transferring money. Consider the following:

1. Use Zelle, Venmo, PayPal or similar apps to make transfers to individuals or businesses where a debit card or credit card is not an option.
2. For making deposits into your investment accounts, link bank accounts to your Fidelity accounts. Our client service team is happy to help with this, and they can also initiate transfers into (or out of) an investment account as needed. 
3. For small amounts, consider paying cash when using a credit or debit card isn’t an option. You may find this advice to be completely contrary to how you were raised. You may have been taught to write a check instead of paying cash to create a record of payment or gifts. I completely understand, as I was always taught to NEVER send cash via the US postal system. Believe it or not, I now believe it is safer to send small amounts of cash via the US mail. In fact, for things like a few dollars for grandkids or tipping my paper delivery person, I am much more comfortable sending cash than a check. A stolen $20 bill is much less risky to me than having my entire checking account information stolen.
4. For credit card payments: set up your card to draft automatically from your checking account. If you are Gen X or younger, you likely have already discovered this convenient feature. However, if you know anyone who may have been raised with the old-school method of mailing checks to pay bills, consider helping them to transition to this automatic transfer method.

If you do need to write a check, use black gel ink. Black gel ink can be a deterrent against check fraud for three reasons: First, gel ink is resistant to many of the chemicals used in check washing. It penetrates the fibers of the paper, making it much harder to wash off without damaging the check. Second, gel ink is more permanent than other inks and is difficult to erase. Third, it bonds with the paper and is less likely to fade over time or be removed. 

For large amounts, consider sending via a method that can be tracked, such as Federal Express or UPS. You can also work with your bank if you need to wire funds (such as for the purchase of a house or other large purchase.)

There aren’t many things that freak us out as your investment advisor. However, there are still some companies operating in the dark ages regarding making transfers out 401(k) and 403(b) plans. To us, there are few things more unnerving than waiting at least a week for a $2 million 401(k) rollover check to show up in the mail. Luckily for our clients, they are not the ones at risk if a check were ever to be lost in the mail, as the custodian would be responsible. However, it is still shocking to us that more secure methods of transfer are not offered by some companies when it comes to retirement plan assets. 

In fact, if you ever need to make a large transfer but are reluctant to pay the wire transfer fee (usually there is a nominal fee of $10 to $25), we recommend that you go ahead and pay it to have the funds transferred more securely.

Part of our work as your advisors is to help you manage your financial world and avoid trouble. When it comes to writing checks and preventing fraudsters from hacking your accounts, the old Benjamin Franklin adage rings true: “an ounce of prevention is worth a pound of cure.” 

Kristina Bolhouse, CPA/PFS, CFP®
President/Shareholder

© 2025 Kristina Bolhouse and The Arkansas Financial Group, Inc., All rights reserved.

The Arkansas Financial Group, Inc. is a Fee-Only Financial Planning Firm located in Little Rock, AR serving clients in Arkansas and throughout the country.

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