Check Fraud refers to an array of serious crimes that can even be federal crimes. If you have been accused of check fraud it’s imperative that you hire an experienced check fraud defense attorney as soon as possible.
According to a recent New York Times report, check fraud has seen an unprecedented rise since the pandemic. Check fraud, and in particular, check washing, is a crime that took off during the era of pandemic checks. During the first year of the pandemic, the Postal Service received 299,020 mail theft complaints, an increase of 161 percent from the previous year. Financial Institutions also reported record increases. It’s estimated that there may be almost 2.5 million “synthetic identity accounts” out there waiting for transactions such as the depositing of stolen checks.
Checks are stolen from the mailbox, en route to their destination or even by employees within the financial institution or post office. The checks may then be washed with chemicals to change the details and/or sold on the open market. Check images are also used to source checks that are used for the purposes of check fraud. With the rise of mobile deposit and check imaging at financial institutions and other institutions, check images can be sold without accessing a physical check. Stolen checks are often sold on the messaging App Telegram. They may be deposited into a bank account with a false name. The funds will then be deposited and the account abandoned.
What Are the Crimes Associated With Check Fraud?
Check Fraud covers a number of serious crimes. Stealing checks and altering them can be charged as larceny, forgery, counterfeiting and check alteration. Posing as someone else to gain funds can amount to a crime of identity theft. Deceiving a financial institution can be charged as bank fraud. These are serious white collar crimes that should not be taken lightly.
Mail Theft
Mail theft alone is a federal crime and a form of larceny. It can be punished by up to five years in federal prison and a fine.
Forgery, Alteration and Counterfeiting
Checks that are reprinted, altered, or the signature on the check is forged are crimes of forgery and counterfeiting. In Massachusetts these are serious crimes that are punishable by up to 10 years in state prison or 2 years in the house of correction. Financial restitution may also be required.
Bank Fraud
Check fraud that involves defrauding a financial institution can be a form of bank fraud, one of the most serious crimes you can be accused of. Federal bank fraud can result in prison sentences of up to 30 years and a fine of up to $1 million.
Identity Fraud
When personal details, such as details on checks, are used to fraudulently obtain funds, this may be a form of identity fraud. Identity fraud is punishable in Massachusetts by a fine of up to 2 and a ½ years in the house of correction and a fine of up to $5000.
Penalties for check fraud increase steeply based on the amount of money involved and whether the fraud involves a financial institution or a federal organization such as the USPS. Many common forms of check fraud are federal crimes. With any crime that has hit the headlines, prosecutors are motivated to crack down on the crime and obtain convictions. This is why anyone accused of check fraud urgently requires a seasoned criminal defense attorney in their corner to fight for their rights. At Dhar Law, LLP, we are white collar crime experts who have defended countless serious cases in state and federal courts. If you or someone you know has been accused of check fraud, please don’t hesitate to reach out to our experienced check fraud defense attorneys.
