With scams on the rise across the country, an old form of theft is emerging in a Chicago suburb, and one resident is raising the alarm.
As Terese Scarlatti shared with CBS News (1), she and her husband recently became victims of check laundering fraud – a form of fraud where criminals use benzene or bleach to erase information on a check to replace it with a new payee and dollar amount, stealing money from the check owner’s bank account (2).
In the Scarlattis’ case, the two checks they sent on the same day—$165 for their insurance company and $64 for their water bill—changed to $5,200 for snow rental and $5,700 for storage fees, respectively (3).
Here’s what you need to know about this scam, including tips on how to protect yourself.
Scarlatis reportedly found out through his mailman that the local post office had previous reports of similar issues. Therese also posted about the scam on Facebook, and dozens of other Lombard, Illinois residents commented that they had experienced the same problem.
Seeking answers, Scarlatti went into the Lombard post office inquiringly and asked to see the back room. “There are no cameras in the back area to see how they’re handling the back,” she told CBS News.
So far, it has not been confirmed that the post office had anything to do with the scam that stole nearly $11,000 from Scarlattis.
Thieves often steal checks from personal, business and certified USPS mailboxes (4). And while these criminals often steal checks to commit fraud, personal information found on stolen checks can also be used to take out loans, as well as open bank accounts and lines of credit in the victim’s name.
Although checks are no longer the most popular payment method, the 2025 AFP Payment Fraud and Control Survey found that this payment method is often targeted for fraud (5).
Checks are still a common form of payment for business-to-business transactions, and an AFP survey found that 63% of respondents said their companies would be victims of check fraud by 2024. In 2021, more than 350,000 suspicious activity reports were filed by financial institutions for possible check fraud, a 2020% increase from C2020. Implementation network (6).
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The number of reports is expected to exceed 680,000 in 2022, nearly double the previous year’s amount. The FBI and the US Postal Inspection Service rightfully announced in early 2025 that reports of check fraud are on the rise, warning people to be careful when using checks (7).
Since their money is federally insured, the Scarletts are sure they’ll get it back, but not all victims of check-laundering schemes are reimbursed.
Check laundering rackets can be successful because some victims do not regularly review their bank statements. Meanwhile, the Illinois Teachers Credit Union (IECU) reports that most financial institutions do not offer full protection against fraud that is not immediately reported, and only some offer partial protection within 60 days (8).
Therefore, the best way to protect yourself from check fraud is to regularly monitor your bank account and report any potential fraudulent activity immediately.
Another recommended way to avoid this type of fraud is to skip checks altogether. IECU recommends using mobile and online banking services as well as P2P systems, as these options are more secure than checks and easier to find.
If you must put a check in the mail, bring it directly to a reputable post office, as opposed to dropping it in a community mailbox. You should also use envelopes that have security ink so that the checks are not visible from the outside.
You can prevent check washing by using pens that are hard to remove. Rollerball, fountain and thick felt tip pens are the safest – but blue ink, permanent markers and ballpoint pens should be avoided, according to IAG Forensic and Value (2).
If you fall victim to this type of fraud, don’t wait to report it to your bank, and if the check is meant to pay a bill, notify the intended recipient immediately so you don’t incur late fees. Acting fast can potentially prevent you from losing hundreds or thousands of dollars.
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CBS News (1); IAG Forensic and Evaluation (2); CBS News Chicago – YouTube (3); Fitzpatrick, Lentz & Bubba Law (4); Association of Financial Professionals (5); Financial Crimes Enforcement Network (6); FBI (7); Illinois Teachers Credit Union (8).
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
