Stop Using Paper Checks! An Intervention

Welcome to Saving Money with Andrew!

A year and a half ago, I wrote about the increasing risks people take by mailing paper checks. It’s gotten worse. Horror stories of checks stolen from mailboxes, and even “inside jobs” at the post office, are becoming more common.

Last week, the NYT published two great articles on this terrible trend. We Can’t Stop Writing Paper Checks. Thieves Love That starts with a particularly terrifying lede:

When Pam Berns mailed a few checks to pay bills, she had no idea such a routine task would throw her small publishing business into chaos.

One of the checks, which she put in a mailbox on a Lincoln Park street in Chicago, was later stolen and rewritten for $7,200 to someone named Mark Pratt. That drained her business bank account, which meant she couldn’t pay the printer, her monthly payroll taxes or her salespeople.

And in another great article, Stolen Checks Are for Sale Online. We Called Some of the Victims, the author finds (in minutes!) an active online marketplace of stolen paper checks which would allow criminals to quickly drain the bank account of the unwitting check writer.

So, what can you do? In the past year, I’ve taken three small steps to try to protect ourselves:

Stop Mailing Paper Checks. If You Need To Mail A Paper Check, Use Billpay, If Not, Use Zelle (Carefully)

In the past, we went through a physical checkbook every couple of years. This year, I’ve written only three physical checks (and delivered each in person).

A handful of recipients require payment via check—for them, I use our bank’s billpay function, which is at least less likely to be stolen in transit. For most, I use Zelle and just make sure to confirm the recipient’s details very carefully before sending payment.

Use Credit Card, Even If There’s A Fee

Even better, when possible I simply use my credit card. Some vendors charge a fee, but it’s mostly offset by the 2% cash rewards we receive on our credit card (you do use a 2% rewards card, right?). And credit card payments offer more protection than any bank option.

Don’t Put All Your Cash In One Bank Account

Finally, if possible, keep at least one other bank or money-market account you can access in a pinch. In a worst case scenario, a fraudster could steal or lock down your checking account, but are unlikely to get to more than one of your accounts. We keep a smaller savings account that we use for a large portion of our online payments and our Venmo account.

And now, Andrew’s pick(s) of the week:

Everything You’ve Ever Wondered About the Home Alone House

In the 1990s, a group of radical artists smuggled political messages into Melrose Place. Not everyone found it funny. (via The Browser)

Why Haven’t More Older Adults Gotten the R.S.V. Vaccine?

I hope this has been helpful. If you liked it, please share it on social media! Also, please send me your feedback, requests, and success stories.