Understanding USPIS and Combating Mail Theft-Related Check Fraud

March 18, 2025

The United States Postal Inspection Service (USPIS) is the nation's oldest law enforcement agency, founded to ensure the security and integrity of the US Postal Service. As check fraud via mail theft rises, the Federal Bureau of Investigation (FBI) and USPIS have issued warnings about criminals exploiting regulatory weaknesses. Learn the who the USPIS is, the reason for the rise, and tips for avoiding mail theft fraud.

Who Are USPIS and What Do They Do?

The Postal Inspection Service’s purpose encompasses any activity related to preserving the safety, security, and integrity of the nation’s mail system from criminal misuse. Postal Inspectors are dedicated to preventing and investigating mail-related offenses, safeguarding the trust and efficiency of one of the country's oldest institutions.

Some of the key areas of focus include:

Mail Theft: Ensuring that mail reaches its intended recipients without interference.
Fraud: Investigating schemes that exploit the postal system for financial gain.
Dangerous Mail: Identifying and mitigating threats posed by hazardous substances sent through the mail.
Security: Enhancing measures to protect postal employees and facilities from criminal activities.

Check Fraud Via Mail Theft Is on The Rise

The Federal Bureau of Investigation (FBI) issued a Public Service Announcement (PSA) on January 27, 2025 (Alert Number: I-012725-PSA) titled: Mail Theft-Related Check Fraud Is On The Rise¹. The FBI and USPIS warn that check fraud via mail theft is increasing as criminals exploit regulations requiring banks to make funds available before fraud can be detected.

According to the PSA, check thefts are not limited to stealing from residential or blue mailboxes, fraudsters are also burglarizing USPS facilities, or colluding with USPS employees. Even more disturbing is the USPIS has also investigated and charged USPS mail carriers and other employees with mail theft².

Tips to Avoid Check Fraud Resulting from Mail Theft

Once the stolen checks are obtained by fraudsters, they use check washing or other techniques to alter stolen checks or create counterfeits, making them appear legitimate. They also deposit unaltered checks with forged endorsements.

Here are some proactive tips to protect your company:

Avoid Fraudulent Vendor Remittance Addresses. Fraudsters not only target changing vendor banking to divert vendor payments, they are now also targeting checks. Have a process that requires supporting documentation be submitted for new vendor setups and existing vendor changes to remittance addresses. Rather than change an address based on an invoice, which could be fraudulent, have a dedicated form to collect mailing addresses and physical addresses.
Verify and Standardize Addresses for Mailing. Verify that the address is valid and is formatted correctly for mailing to the vendor. For tips and resources see IOFM article Missing a Valid Vendor Address? Five Free Resources for Finding Vendor Addresses³
Setup Payee Positive Pay – When checks are presented at your bank, ensure that the bank is validating that the “Payee + Check Number + Amount” matches the file sent to the bank. This way if a check does get stolen in the mail, and the fraudster changes the payee’s name only, leaving the “Check Number + Amount” as is, it will still be caught.
Hold for Pickup: If you are shipping a package to your vendor, use this service to be sure that the vendor collects the package directly from the post office, reducing the risk of mail theft.
Avoid Mailing Checks in US Post Office Blue Mailboxes – Fraudsters, or thieves that sell to fraudsters, have been busy stealing USPS arrow keys that open blue mailboxes and apartment mail systems in order to steal checks. If you must drop off mail, go directly into the post office.
Follow-Up to Confirm the Vendor Received the Check Payment – For significant payments, contact the vendor withing 5 – 7 days to verify that the payment was received. This way if the vendor did not receive the payment suspicious fraudulent activity can be reported to your bank as quickly as possible vs waiting for fake checks to be discovered by the bank.

Get familiar with USPIS⁴ and how their information can assist you in avoiding and keeping up to date with the latest in fraud trends that may delay payments to your vendors. Subscribe to their Scam Articles, check out their Tips & Prevention page and if your company has been a victim of mail theft, report it to them.

Conclusion

Companies can reduce the risks of check fraud caused by mail theft by using proactive measures and staying informed. Utilize the resources from the USPIS to remain updated on recent mail theft and other frauds.