A California couple thought their quarterly tax payment had been handled. The check had cleared, the money had left their account, and there was no obvious reason to worry.
Then the IRS notice arrived. The couple owed $12,000 plus interest and penalties because the agency had never received the payment, according to The Washington Post.
When they pulled up the image of the cleared check, they saw the problem: the original payee had been changed. The check they mailed to the IRS had allegedly been altered and deposited by someone else.
The case shows why a paper check can appear “paid” in a bank account while the intended recipient still never receives the money.
The Scam Is Called Check Washing
Check washing is a low-tech fraud that can cause high-dollar damage. The U.S. Postal Inspection Service says criminals steal checks from the mail, then change the payee names and often the dollar amounts before fraudulently depositing them.
Some scammers use chemicals to remove ink from stolen checks. Others use scanners or copiers to create fake copies. The signature can remain in place, which helps the altered check look real enough to move through the banking system before the victim knows anything is wrong.
In the Washington Post case, the couple did not discover the theft until a year later, when the IRS said the tax payment had not been received.
Mail Theft Has Made Paper Checks Riskier
The FBI and the U.S. Postal Inspection Service warned in 2025 that check fraud was rising, with a significant volume enabled by mail theft. The agencies said suspicious activity reports related to check fraud had nearly doubled from 2021 to 2023, and that stolen checks often clear before consumers, banks, or law enforcement realize fraud has occurred.
FinCEN later reported more than $688 million in suspicious activity tied to mail theft-related check fraud during a six-month review period after its 2023 alert. The agency said stolen checks were commonly altered and deposited, used as templates to create counterfeit checks, or fraudulently signed and deposited.
A check can be stolen from a mailbox or collection box, rewritten, deposited, and marked as cleared while the bill, tax payment, or business invoice remains unpaid.
The Money Can Be Hard To Get Back
The California couple’s case shows why recovery can become complicated. The check had cleared long before they realized the IRS had not received the payment, and The Washington Post reported that Chase said they had missed the deadline to report the fraud.
That delay is common in check washing. The person who wrote the check may not know it was stolen until a bill is marked unpaid, a tax notice arrives, or the intended recipient asks why payment never came. By then, the altered check may have been deposited, the money may have moved, and the bank’s reporting window may already be an issue.
The FBI and USPIS warning says consumers can face late payments, stop-payment fees, account disruption, compromised personal information, and delays in getting money back while investigations continue.
Mail Checks Only With Extra Precautions
The safest option is to avoid mailing paper checks when a secure electronic payment is available. For checks that still have to be mailed, USPIS says outgoing mail should be placed in a blue collection box before the last pickup time or dropped off at a local post office.
Mail should not sit overnight in a residential mailbox. USPIS also advises people going on vacation to place mail on hold at the post office or have a trusted friend or neighbor pick it up.
The FBI and USPIS also warn that blue collection boxes can be targeted after the last pickup time. That means the timing matters: leaving a check in a public box after collection can give thieves more time to steal it before the next pickup.
Check The Image After It Clears
Anyone who mails a check should not stop checking after the bank balance changes. Review the image of the cleared check and confirm the payee, amount, and endorsement match what was written.
If the check was stolen, altered, or deposited by someone else, contact the bank immediately and ask for copies of the fraudulent check. Victims should also report suspected mail theft or check washing to local police and to the U.S. Postal Inspection Service at USPIS.gov/report or 1-877-876-2455.