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Huntsville business loses $1.5M in check-washing scam

"Huntsville Business Scam"
“Huntsville Business Scam”

A local business in Huntsville, Utah, has reportedly lost upwards of $1.5 million to a check-washing scam. In these fraudulent schemes, criminals steal checks and alter the details using easily accessible items.

The Huntsville Police Department has investigated the matter. They are urging local businesses to upgrade their security measures to avert such disasters. High-security checks and advanced monitoring systems have been recommended.

Check-washing scams have been spiking recently as many businesses persistently use traditional checks. Technology advancements have opened new opportunities for criminals, necessitating businesses’ equal reaction.

Modern banking technologies, such as direct deposits and digital payments, can help mitigate such threats.

Addressing check-washing fraud in Huntsville

This transition though sometimes arduous for small businesses, is crucial considering that they are often targeted primarily because they lack robust security features.

The unnamed business strongly believes it was the target due to the high-value checks it often issues, ranging from $10,000 to $100,000. The company suspects insider involvement due to the intricate knowledge of its financial processes required to pull off such a scam. In response to this incident, it has resolved to revise its payment protocols.

Karen Reeves of the Better Business Bureau agrees with this trend and urges businesses to eschew regular pens for uniball pens when writing checks, given the ink’s resilience against fading and erasure. Advising further, she suggests filling all fields on your check to safeguard against fraudulent alterations, opting for electronic payment methods to eliminate personal checks, regularly monitoring account statements, and reporting discrepancies as soon as they are noticed.

The Better Business Bureau is stepping up to aid victims of such frauds. If you suspect you have been targeted, reporting early is the key to minimizing damage. Remember, awareness and prompt action are our best defense against fraudulent practices.

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