Pittsburgh-area man ripped off by check washing scam
BEAVER FALLS, Pa. (KDKA) — A Beaver Falls man says he's the latest victim of a crime known as check washing.
He called KDKA Investigates after he said he tried for months to get his bank to refund him the stolen money. KDKA Investigates Consumer Investigator Meghan Schiller found out it is happening more and more in our area, and the postal inspector is investigating cases of check washing.
What is check washing?
Ralph Dyson retired long ago and proof of his 62-year marriage to his late wife Ethel still sits on the TV stand at his home in Beaver Falls.
"My finances kind of went down the drain because my wife was in a nursing home for the last 18 years she lived," Dyson said.
Like so many people, Dyson's living on a fixed income. That's why he was utterly devastated when he learned two checks he dropped in a curbside mailbox for under $10 were cashed for upwards of $1,600.
"I saw two checks for $800 and some dollars and I said wait a minute I didn't write those checks," said Dyson.
He immediately called the Patterson Township Police Department, and officers confirmed he fell victim to check washing.
"When fraudsters take a series of chemicals and take a stolen check that say is made out say Joe Bernardo and wash that check of all of the information on it and then write it out in their own name as if the check was originally intended to go to fraudster A," Joe Bernardo, head of fraud and claims operations at Wells Fargo, said.
Dyson immediately called his bank: First National Bank in Chippewa.
"I told them it's legalized stealing," Dyson said. "Because of my age, they figured he's not going to follow through with anything, probably senile."
Dyson said for nine months, he got the runaround and no resolution. He filed a complaint with the Consumer Financial Protection Bureau and reached out to the Office of the Comptroller of the Currency.
He even filed a dispute with First National Bank in March 2024 and June 2024. First National Bank said, "The financial institution where the check was deposited has denied your claim for the following reason: Maker's Signature is forged or traced.
KDKA Investigates learned the forged signature would make it the responsibility of Dyson's bank, First National, to reimburse him for this money.
Uniform Commercial Code says if you can show a fraudster forged your signature but your bank released the money anyway, your bank is liable to reimburse you. If a fraudster alters your check and doesn't forge your signature, the bank that cashed the check needs to reimburse you.
After talking with First National Bank about Dyson's situation, First National Bank alerted Dyson that a refund would be processed.
"They just said we're going to send you a notice that you're going to get your money back," Dyson said.
"Did you fall over on the floor?" KDKA's Meghan Schiller asked.
"I choked," Dyson said.
Tips to avoid check washing
Experts have five tips to avoid being a victim of check washing.
- Write in non-erasable black ink. Gel pens are best since they're the hardest to remove in the washing process.
- Sign up for bank account alerts.
- If you must mail a check, go inside the post office versus leaving the check in an outdoor mailbox.
- Use a more secure digital payment method.
- Review account statements and look at images to make sure nothing is altered.
