Technology

Check washing crisis fueled by AI and mail theft

Published

10 months ago

May 18, 2025

Check washing crisis fueled by AI and mail theft

Once considered an old-fashioned crime, check washing has roared back to life with alarming sophistication.

Criminals are not just targeting personal checks anymore. They are exploiting every vulnerability in the mailing and banking system to cash in on stolen funds.

As check fraud incidents continue to rise sharply across the country, it is more important than ever to understand how check washing works and what you can do to protect yourself. Here is what you need to know to stay ahead of the scammers.

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A pen placed on top of a blank check (Kurt “CyberGuy” Knutsson)

What is check washing fraud?

Check washing fraud happens when a scammer steals a check you have written, erases the ink using chemicals like acetone or nail polish remover, and rewrites it to a new recipient. Often, they will change the amount to something much higher. The altered check is then deposited or cashed, and the funds are drained from your account before you even realize something is wrong.

Why it’s dangerous:

Check washing does not require much technical skill.
It can happen with checks you leave in your outgoing mail.
Even mailed bill payments are vulnerable if not handled securely.

FBI WARNS OF SCAM TARGETING VICTIMS WITH FAKE HOSPITALS AND POLICE

Unlike digital fraud, check washing often goes unnoticed until long after the damage is done. Because checks can take days or even weeks to clear through the banking system, criminals have plenty of time to deposit altered checks and move funds before victims realize anything is wrong.

By the time the missing money is discovered, tracing it back to the scammer can be extremely difficult. This delay makes it critical to monitor your accounts closely and act quickly if you spot any suspicious activity.

Illustration of check fraud in progress (Kurt “CyberGuy” Knutsson)

FBI WARNS OF SCAM TARGETING VICTIMS WITH FAKE HOSPITALS AND POLICE

How check washing has gotten worse

Since 2023, check fraud has exploded in the United States.

The surge in fraud reports reflects more than just isolated criminal acts. Organized crime rings are increasingly turning to check washing as a hybrid crime, blending old-school mail theft with new digital tools like AI. Fraudsters now use advanced technologies to forge identities, alter check images and exploit gaps in banking security, making check washing more sophisticated than ever. As financial institutions strengthen cybersecurity defenses, scammers are targeting physical mail systems as a weaker link to bypass digital barriers.

Real examples:

Six people were charged with attempting to steal $80 million through fraudulent checks tied to COVID-19 relief funds.
In Florida, a former mail carrier pleaded guilty to attempting to sell USPS arrow keys and stolen checks totaling nearly $550,000 to an undercover agent, leading to his arrest and confession.

New tricks criminals are using

Fraudsters have adapted their methods to stay ahead of law enforcement and banks.

Mobile deposit fraud: Criminals alter check images or deposit the same check into multiple accounts.
Synthetic identity fraud: Scammers create fake identities using AI-generated documents to open accounts and cash stolen checks.
Business Email Compromise (BEC): Attackers impersonate executives or vendors to convince companies to send checks to fraudulent accounts.

Criminals are combining old techniques like mail theft with new digital strategies, making check washing harder to recognize and prevent without proactive security measures. Recent advancements in AI technology have made it easier for scammers to forge realistic-looking documents, generate convincing fake identities and create sophisticated phishing emails.

AI-generated fake IDs and altered check images can pass basic verification checks that would have caught manual forgeries in the past. This shift means check fraud is no longer just a matter of stealing a physical check, but exploiting digital vulnerabilities at every stage of the banking process.

A person going over a bank statement (Kurt “CyberGuy” Knutsson)

THIS IS WHAT YOU ARE DOING WRONG WHEN SCAMMERS CALL

How to protect yourself from check washing fraud

Here are 14 essential protective measures to shield yourself from check washing scams.

1. Use a black gel pen: When writing checks, always use a black gel pen. The ink is much harder to remove compared to regular ballpoint pen ink.

2. Bring checks directly to the post office when mailing them: If using a mailbox, make sure to drop off your mail before the final scheduled pickup so it is not left sitting overnight.

3. Sign up for USPS Informed Delivery: Stay ahead by signing up for USPS Informed Delivery. You will receive digital previews of incoming mail so you can monitor for any missing items early. Learn more about why it’s important here.

4. Monitor your bank accounts: Set up real-time alerts for check clearing and review your statements weekly to catch any suspicious activity. Also, ask your bank about any other fraud-prevention tools they offer to protect your accounts.

5. Switch to digital payments when possible: Use your bank’s mobile app to deposit checks without mailing or physically delivering them, reducing the risk of theft or tampering.

6. Use checks with built-in security features: Choose checks printed on paper with watermarks, chemical-sensitive coatings or other security features that make check washing much harder.

7. Limit the information on checks: Avoid unnecessary personal details. Do not print your Social Security number, driver’s license number or phone number on your checks. The less information available, the less a fraudster can use.

HOW CYBERSCAMS ARE DRAINING AMERICANS WALLETS BY THE BILLIONS

8. Store checks securely: Keep blank checks in a safe place. Store your checkbook in a locked drawer or safe, not in your purse, car or an easily accessible location at home.

9. Check your mailbox security: Install a locking mailbox. If possible, use a mailbox with a lock to prevent thieves from stealing outgoing or incoming mail.

10. Be cautious with endorsements: When endorsing checks, write “For Deposit Only” along with your account number to prevent others from cashing the check.

11. Enroll in identity theft protection with check fraud specialization: Choose services that specifically monitor for compromised check details on dark web marketplaces and alert you to suspicious check-cashing patterns. Identity theft protection services monitor your personal data across the dark web and public databases, alert you to suspicious activity and assist you in locking down your accounts if needed. See my tips and best picks on how to protect yourself from identity theft.

12. Invest in personal data removal services: Minimize exposure of sensitive details (like addresses or banking affiliations) that fraudsters could exploit for check-washing scams. Removing your personal information from these sites can help reduce your risk of becoming a victim. While no service can guarantee the complete removal of your data from the internet, a data removal service is really a smart choice. They aren’t cheap and neither is your privacy.

These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you. Check out my top picks for data removal services here.

13. Shred sensitive documents: Shred old checks and bank statements. Don’t just throw them away. Shred any documents with sensitive banking information.

14. Report suspicious activity immediately: If you suspect check fraud or missing mail, report it to your bank and the U.S. Postal Inspection Service right away.

15. Use Positive Pay if you are a business: Positive Pay is a fraud prevention service offered by most banks to business customers. It works by matching the checks you issue with the ones presented for payment. If something doesn’t add up, like a changed amount or payee, the bank flags it for your review before it’s processed. You usually need to sign up through your bank, and there might be a fee, but it’s a smart way to protect your business from check fraud, especially if you write a lot of checks.

What to do if you are a victim

If you think you have been targeted by check fraud:

Time matters. The faster you act, the better your chances of recovering lost funds.

Kurt’s key takeaways

Check washing fraud is growing rapidly, and criminals are becoming more organized and sophisticated. Simple habits like using gel pens, securing your mail and monitoring your financial accounts closely can make a big difference. Services like USPS Informed Delivery, Positive Pay for businesses and personal data removal tools provide added layers of protection. Identity theft protection services can also offer critical support if you ever become a victim of check fraud.

Have you or someone you know experienced check fraud? Let us know by writing us at Cyberguy.com/Contact

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Kurt “CyberGuy” Knutsson is an award-winning tech journalist who has a deep love of technology, gear and gadgets that make life better with his contributions for Fox News & FOX Business beginning mornings on “FOX & Friends.” Got a tech question? Get Kurt’s free CyberGuy Newsletter, share your voice, a story idea or comment at CyberGuy.com.

Technology

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

Published

4 hours ago

February 27, 2026

Press Room

Defense secretary Pete Hegseth designates Anthropic a supply chain risk

This week, Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon.

Our position has never wavered and will never waver: the Department of War must have full, unrestricted access to Anthropic’s models for every LAWFUL purpose in defense of the Republic.

Instead, @AnthropicAI and its CEO @DarioAmodei, have chosen duplicity. Cloaked in the sanctimonious rhetoric of “effective altruism,” they have attempted to strong-arm the United States military into submission – a cowardly act of corporate virtue-signaling that places Silicon Valley ideology above American lives.

The Terms of Service of Anthropic’s defective altruism will never outweigh the safety, the readiness, or the lives of American troops on the battlefield.

Their true objective is unmistakable: to seize veto power over the operational decisions of the United States military. That is unacceptable.

As President Trump stated on Truth Social, the Commander-in-Chief and the American people alone will determine the destiny of our armed forces, not unelected tech executives.

Anthropic’s stance is fundamentally incompatible with American principles. Their relationship with the United States Armed Forces and the Federal Government has therefore been permanently altered.

In conjunction with the President’s directive for the Federal Government to cease all use of Anthropic’s technology, I am directing the Department of War to designate Anthropic a Supply-Chain Risk to National Security. Effective immediately, no contractor, supplier, or partner that does business with the United States military may conduct any commercial activity with Anthropic. Anthropic will continue to provide the Department of War its services for a period of no more than six months to allow for a seamless transition to a better and more patriotic service.

America’s warfighters will never be held hostage by the ideological whims of Big Tech. This decision is final.

Technology

What Trump’s ‘ratepayer protection pledge’ means for you

Published

4 hours ago

February 27, 2026

Press Room

What Trump’s ‘ratepayer protection pledge’ means for you

NEWYou can now listen to Fox News articles!

When you open a chatbot, stream a show or back up photos to the cloud, you are tapping into a vast network of data centers. These facilities power artificial intelligence, search engines and online services we use every day. Now there is a growing debate over who should pay for the electricity those data centers consume.

During President Trump’s State of the Union address this week, he introduced a new initiative called the “ratepayer protection pledge” to shift AI-driven electricity costs away from consumers. The core idea is simple.

Tech companies that run energy-intensive AI data centers should cover the cost of the extra electricity they require rather than passing those costs on to everyday customers through higher utility rates.

It sounds simple. The hard part is what happens next.

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At the State of the Union address Feb. 24, 2026, President Trump unveiled the “ratepayer protection pledge” aimed at shielding consumers from rising electricity costs tied to AI data centers. (Nathan Posner/Anadolu via Getty Images)

Why AI is driving a surge in electricity demand

AI systems require enormous computing power. That computing power requires enormous electricity. Today’s data centers can consume as much power as a small city. As AI tools expand across business, healthcare, finance and consumer apps, energy demand has risen sharply in certain regions.

Utilities have warned that the current grid in many parts of the country was not built for this level of concentrated demand. Upgrading substations, transmission lines and generation capacity costs money. Traditionally, those costs can influence rates paid by homes and small businesses. That is where the pledge comes in.

What the ratepayer protection pledge is designed to do

Under the ratepayer protection pledge, large technology companies would:

Cover the full cost of additional electricity tied to their data centers
Build their own on-site power generation to reduce strain on the public grid

Supporters say this approach separates residential energy costs from large-scale AI expansion. In other words, your household bill should not rise simply because a new AI data center opens nearby. So far, Anthropic is the clearest public backer. CyberGuy reached out to Anthropic for a comment on its role in the pledge. A company spokesperson referred us to a tweet from Anthropic Head of External Affairs Sarah Heck.

“American families shouldn’t pick up the tab for AI,” Heck wrote in a post on X. “In support of the White House ratepayer protection pledge, Anthropic has committed to covering 100% of electricity price increases that consumers face from our data centers.”

That makes Anthropic one of the first major AI companies to publicly state it will absorb consumer electricity price increases tied to its data center operations. Other major firms may be close behind. The White House reportedly plans to host Microsoft, Meta and Anthropic in early March to discuss formalizing a broader deal, though attendance and final terms have not been confirmed publicly.

Microsoft also expressed support for the initiative.

“The ratepayer protection pledge is an important step,” Brad Smith, Microsoft vice chair and president, said in a statement to CyberGuy. “We appreciate the administration’s work to ensure that data centers don’t contribute to higher electricity prices for consumers.”

Industry groups also point to companies such as Google and utilities including Duke Energy and Georgia Power as making consumer-focused commitments tied to data center growth. However, enforcement mechanisms and long-term regulatory details remain unclear.

CHINA VS SPACEX IN RACE FOR SPACE AI DATA CENTERS

The White House plans talks with Microsoft, Meta and Anthropic about shifting AI energy costs away from consumers. (Eli Hiller/For The Washington Post via Getty Images)

How this could change the economics of AI

AI infrastructure is already one of the most expensive technology buildouts in history. Companies are investing billions in chips, servers and real estate. If firms must also finance dedicated power plants or pay premium rates for grid upgrades, the cost of running AI systems increases further. That could lead to:

Slower expansion in some markets
Greater investment in renewable energy and storage
More partnerships between tech firms and utilities

Energy strategy may become just as important as computing strategy. For consumers, this shift signals that electricity is now a central part of the AI conversation. AI is no longer only about software. It is also about infrastructure.

The bigger consumer tech picture

AI is becoming embedded in smartphones, search engines, office software and home devices. As adoption grows, so does the hidden infrastructure supporting it. Energy is now part of the conversation around everyday technology. Every AI-generated image, voice command or cloud backup depends on a power-hungry network of servers.

By asking companies to account more directly for their electricity use, policymakers are acknowledging a new reality. The digital world runs on very physical resources. For you, that shift could mean more transparency. It also raises new questions about sustainability, local impact and long-term costs.

ARTIFICIAL INTELLIGENCE HELPS FUEL NEW ENERGY SOURCES

As AI expansion strains the grid, a new proposal would require tech firms to fund their own power needs. (Sameer Al-Doumy/AFP via Getty Images)

What this means for you

If you are a homeowner or renter, the practical question is simple. Will this protect my electric bill? In theory, separating data center energy costs from residential rates could reduce the risk of price spikes tied to AI growth. If companies fund their own generation or grid upgrades, utilities may have less reason to spread those costs among all customers.

That said, utility pricing is complex. It depends on state regulators, long-term planning and local energy markets.

Here is what you can watch for in your area:

New data center construction announcements
Utility filings that mention large commercial load growth
Public service commission decisions on rate adjustments

Even if you rarely use AI tools, your community could feel the effects of a nearby data center. The pledge is intended to keep those large-scale power demands from showing up in your monthly bill.

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Kurt’s key takeaways

The ratepayer protection pledge highlights an important turning point. AI is no longer only about innovation and speed. It is also about energy and accountability. If tech companies truly absorb the cost of their expanding power needs, households may avoid some of the financial strain tied to rapid AI growth. If not, utility bills could become an unexpected front line in the AI era.

As AI tools become part of daily life, how much extra power are you willing to support to keep them running? Let us know by writing to us at Cyberguy.com.

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Technology

Here’s your first look at Kratos in Amazon’s God of War show

Published

16 hours ago

February 27, 2026

Press Room

Here’s your first look at Kratos in Amazon’s God of War show

Amazon has slowly been teasing out casting details for its live-action adaptation of God of War, and now we have our first look at the show. It’s a single image but a notable one showing protagonist Kratos and his son Atreus. The characters are played by Ryan Hurst and Callum Vinson, respectively, and they look relatively close to their video game counterparts.

There aren’t a lot of other details about the show just yet, but this is Amazon’s official description:

The God of War series storyline follows father and son Kratos and Atreus as they embark on a journey to spread the ashes of their wife and mother, Faye. Through their adventures, Kratos tries to teach his son to be a better god, while Atreus tries to teach his father how to be a better human.

That sounds a lot like the recent soft reboot of the franchise, which started with 2018’s God of War and continued through Ragnarök in 2022. For the Amazon series, Ronald D. Moore, best-known for his work on For All Mankind and Battlestar Galactica, will serve as showrunner. The rest of the cast includes: Mandy Patinkin (Odin), Ed Skrein (Baldur), Max Parker (Heimdall), Ólafur Darri Ólafsson (Thor), Teresa Palmer (Sif), Alastair Duncan (Mimir), Jeff Gulka (Sindri), and Danny Woodburn (Brok).

While production is underway on the God of War series, there’s no word on when it might start streaming.