Let’s get straight to it: yes, check washing is very real. It isn’t some rare scam that happens to someone else. It’s happening now, and if your law‐firm bookkeeping and forensic accounting operation isn’t set up to guard against it, you’re risking more than money—you’re risking your client’s trust.
What is check washing?
In simple terms: a criminal steals or intercepts a legitimately written check, uses chemicals (like bleach, acetone, nail-polish remover) to remove or fade the ink-written portions (the payee name, the dollar amount), then rewrites the check with themselves (or an accomplice) as payee and/or higher amount.
Here’s the breakdown of the usual path:
- Mail containing a check (outgoing or incoming) is stolen from a collection box, mailbox, or during transit.
- The thief removes the inked details, leaving the signature (or simulates one) intact, so it still “looks real.”
- The check gets rewritten, deposited or cashed quickly before it’s detected.
- The original payee never gets the funds, the issuing business might face a bounced check or worse.
Why this is especially a threat for law‐firms & small businesses
- Checks remain in circulation far longer than many realize. While many payments have shifted to digital, businesses, including law firms, still issue checks for many vendor payments, rent, subcontractors, etc. That gives fraudsters a window.
- Smaller operations often have thinner internal controls around mailed payments, check stock, and mail security. The data says smaller businesses are targeted hard.
- For a bookkeeping / forensic accounting firm like yours (and the clients you serve), you’re in the business of trust. A check‐fraud event harms your client’s bottom line and your value proposition of accuracy, compliance, and efficiency.
Real story for context
In the article from CBS News, one man wrote a $10,000 check to the IRS. The payment “never arrived.” It turned out someone washed it and rewrote it to themselves. CBS News
That’s not just a check writing error, it’s a failure in mail handling, internal control, and risk oversight.
How to put a defense in place — what you can (and should) do
No, you can’t guarantee zero risk. But you can change the odds dramatically. Here are proven steps you can implement with your clients (or your own firm) today:
1. Shift payment behavior
- Encourage electronic payments wherever possible. ACH, wire transfers, vendor portals; these bypass the physical check and mail theft vector.
- For unavoidable checks, reduce the time they are in transit: hand them directly to the mail carrier or drop off at the post office, rather than leaving in mailboxes or blue collection boxes late in the day.
2. Strengthen check issuance controls
- Use permanent gel or indelible ink pens. Gel ink bonds better with the paper fibers, making it harder for thieves to “wash” the details.
- Choose check stock that features fraud-resistant elements (watermarks, chemical reactive paper, tamper-evident features).
- Don’t leave blank spaces on checks. Write “Pay to the Order of: [recipient]” and fill in the amount in words and numbers. Draw a line after writing the amount so no extra digits or words can be added.
3. Mail & postage chain security
- Outgoing: Use secure drop-off methods and limit mail sitting time in your outgoing mailbox.
- Incoming: If checks are received in the mail, retrieve them ASAP, and consider centralized mail receipt.
- If you’re away: Use a “hold-mail” with the post office or a trusted staff/colleague to receive mail.
4. Bank tools & reconciliation controls
- Enroll in Positive Pay (or “Reverse Positive Pay”) with your banking partner. You send a list of checks issued; the bank compares items presented against that list. Anything mismatched gets flagged.
- Monitor cleared check images daily (or as frequently as possible). Check that payee and amounts match what you issued.
- Limit account access. Separate duties: who writes checks, who mails them, who reconciles. Internal control matters.
5. Train the team + build awareness
- Make sure everyone writing, handling, mailing, reconciling checks understands: this isn’t just “old‐school” risk, it’s very current.
- Develop a checklist for outgoing payments: was a check stock used? Is the recipient correct? Was permanent ink used? Has the mailing step been supervised?
- Have a protocol for what to do when you suspect something: freeze check, alert bank, file report with the U.S. Postal Inspection Service (if mail theft is involved).
6. Act fast if fraud happens
Time is everything. In the CBS example, the bank refused to reimburse because the fraud was reported more than 30 days after the check was cashed.
Steps include:
- Contact your bank immediately.
- Document everything (check number, amount, payee, mailing method).
- File report with USPS/Postal Inspection Service if mail theft is suspected.
- Reconcile and decide whether to close/rename the account if check stock information is compromised.
Final takeaway
If you’re advising law-firms (or running one) and still relying on paper checks without strong controls, stop thinking of check washing as “someone else’s problem.” It’s a vulnerability, not a minor nuisance.
Here’s your immediate, actionable next step (you can do this today):
Review all check issuance processes for your clients (or your own firm):
- Who writes the checks?
- What ink/pen do they use?
- Where is the check dropped into the mail?
- How long until it’s mailed?
- What bank fraud tools are active (Positive Pay, alerts, reconciliations)?
Pick at least one weak link and fix it this week.
Do this once and you’ll sleep easier. Do it every quarter and you’ll keep ahead of the fraudsters. And your clients, law-firms counting on you, will thank you for not just managing the books, but protecting the business.
