How cybercriminals turn paper checks stolen from mailboxes into bitcoin

Yahoo ^ | January 5, 2022 | David Maimon

[PBRCat]

I’ve been documenting a less high-tech threat emerging in recent months: a surge in stolen checks.

Criminals are targeting U.S. Postal Service and personal mailboxes to pilfer filled-out checks and sell them over the internet. The buyers alter the payee and amount listed on the checks to rob victims’ bank accounts of thousands of dollars. While banks typically bear the financial burden and reimburse targeted accounts, criminals can use the checks to steal victims’ identities, which can have severe consequences.

For the past two years, we’ve been surveilling 60 black market channels on the internet to learn more about the online fraud ecosystem and gather data on it in a systematic way in order to spot trends.

In our observations, we came across an average of 1,325 stolen checks being sold every week in October 2021, up from 634 per week in September and 409 in August. Although little historical data on this practice exists, a one-week pilot study we conducted in October 2020 places these numbers in some perspective. Back then, we observed only 158 stolen checks during that period.

Furthermore, these figures likely only represent a small fraction of the number of checks actually being stolen and sold. We focused on only 60 markets.

In dollar amounts, the face value of the checks, as written, was $11.6 million in all of October and $10.2 million in September. But again, these values likely represent a small share of the actual amount of money being stolen from victims because criminals often rewrite the checks for much higher amounts.

Using the victims addresses, which appear on the left top corner of the checks, and focusing on the data we collected in the month of October 2021, we found New York, Florida, Texas and California were the top sources.

[PBRCat]

This is becoming a national crisis. Similar theft rings have been reported in New Jersey, Pennsylvania, Georgia, and Illinois.

[Liberty Tree Surgeon]

Just assume this is fear porn to drive more transactions to the electronic format most easily tracked and controlled by government authorities everywhere.

[madison10]

The stolen check problem is NOT fear porn.

[bigbob]

Someone should notify the FB...uh, never mind

[lnbjohnson]

Paper checks have the bank routing number and your bank account number. It is easy to make blank checks with this information. A low tech method is to simply steal checks from someone’s mail box and take it to a check cashing store. We stamp the back of each check we mail out ‘For Deposit Only’. Not fool proof, but helps. An even simpler way is to use the bank routing number and account number to make an online purchase. We have had this problem with one of the major chain stores. If you catch it when you review you bank statement (and everyone does this. Right?) the bank will reverse the charge. If you don’t catch it, the money is taken from your account and you are not even aware it happened.

[madison10]

I agree. I still have cut way back on mailing checks.

Read the story on FR on what is going on in Illinois with mailbox theft.

[vetvetdoug]

I had a theft of a personal check that was made to the power company from my mailbox back in 2004. They cloned the check and went on a check cashing spree through Mississippi, Arkansas, and Missouri all on an Easter weekend where the Monday was a bank day off so they were long gone by the time my bank started getting the bogus checks. Luckily I have a unique signature and the bank recognized the forgeries that Tuesday and stopped payment on all of them and protected my account.

[VanShuyten]

Whenever I have to mail a check, I always go to the Post Office and drop it off inside. There has been a series of check thefts from residential mail boxes here in northern Virginia. That raised red flag on the mail box is just like ringing the dinner bell for thieves.

[PBRCat]

Not so. I have had checks stolen from the mail twice in the last four months and had to close two checking accounts.

I would prefer to make payments by check, but cannot do so in confidence if the US Post Office is not safeguarding the mails.

[Liberty Tree Surgeon]

Didn’t say it’s not an issue - stated the publication of the issue is designed to drive support for pushing transactions to the electronic - and more easily tracked - format that the tyrants prefer.

[madison10]

Agree.