Mail theft has become a growing concern for both businesses and residents on the Central Coast. Stolen checks are being altered, counterfeited, and used in impersonation schemes, causing disruption to payrolls, delaying payments, and impacting people’s everyday finances.
Federal and media investigations continue to highlight the steep growth in mail‑theft‑enabled fraud, including check washing (where fraudsters use chemicals to erase ink) and counterfeiting schemes tied directly to stolen mail. As is often the case, criminals are exploiting the latest news and tragedies to make their scams more believable.
Recently, we’ve seen a rise in transnational criminals impersonating banks, calling individuals and businesses to warn that a “large check” is attempting to clear their account. Once the conversation starts, the attacker asks for “identifying information”, including online banking usernames and passwords.
We will never call you about a potential fraudulent check on your account and then proceed to ask for your online banking credentials.
Mail theft continues to result in check fraud as large payments are stolen directly from the mail. For businesses this often includes payroll and vendor payments; for residents it’s typically bill payments. Once stolen, these checks may be altered, counterfeited, or used in a business impersonation attempt.
What makes this problem worse is that the most effective deterrent—visible, on‑the‑street prevention—was largely removed five years ago.
In August 2020, a directive signed by Deputy Chief Inspector, David Bowers, sharply limited the role of U.S. Postal Police Officers (PPOs), restricting them to postal property and eliminating their ability to patrol public streets, blue collection boxes, and carrier routes.
At the time, mail theft targeting USPS blue collection boxes was already well documented. Postal police unions argued that the decision ended longstanding offsite patrols that previously deterred theft.
Since then, Postal Police Officers—distinct from Postal Inspectors—have remained largely unable to conduct routine off‑property patrols, even as mail theft accelerated.
In the years following the 2020 directive, mail theft and related financial crimes increased dramatically. According to the FBI and the U.S. Postal Inspection Service (USPIS), mail theft–related check fraud has surged nationwide, with suspicious activity reports tied to stolen mail nearly doubling between 2021 and 2023.
In September 2024, six months after FinCEN’s issuance of its 2023 alert on this same topic, FinCEN reported they had received more than 15,000 reports across over 800 financial institutions on mail theft-related check fraud, amounting to more than $688 million in reported suspicious activity. The FinCEN analysis also breaks down outcomes after checks are stolen: 44% altered and deposited, 26% used as templates for counterfeit checks, and 20% fraudulently signed and deposited.
At the same time, organized criminals adapted quickly. When USPS reinforced collection box panels, the patterns shifted. In fact, here in Santa Barbara County thieves have been so bold as to drive up onto postal office properties to steal from metered mail bins. When Arrow keys—the master keys used to open mailboxes and collection boxes—became more heavily relied upon, criminals began stealing and even counterfeiting the keys themselves1.
A single stolen Arrow key can provide access to hundreds or even thousands of mail receptacles2. Keys are being sold on underground markets for thousands of dollars. Once in circulation, mail theft becomes faster, quieter, and harder to detect.
Here on the Central Coast, we’ve seen this firsthand. Even years after local warnings, we’re still helping clients navigate check fraud tied to mail theft, as recently as last month.
While the USPIS is the lead agency for mail theft, the FBI leads complex financial fraud investigations. In addition, the USPIS primarily investigates after the crime occurs. The capacity to prevent mail theft in real time—through uniformed patrols in high‑risk areas—was largely lost when postal police were restricted from operating off postal property following the 2020 Bowers Memo directive. As we’ve experienced here on the Central Coast, mail fraud is often discovered days or weeks later; mail theft happens first. Without frontline deterrence, financial crime reaches the banking system before intervention is possible.
H.R. 2095, the Postal Police Reform Act, directly addresses this gap. Introduced in March 2025, the bill aims to restore mail-protection authority where mail actually moves. Advocates like Frank Albergo of the Postal Police Officers Association have played a central role in drawing national attention to the consequences of sidelining postal police and the need for legislative correction.
While we wait for policy changes, taking practical actions is essential.
1. Avoid using blue collection boxes for checks
Advisories recommend handing checks directly to postal clerks or using secure indoor mail slots whenever possible.
2. Use security pens when writing checks
Security pens use pigment-based ink that penetrates paper fibers, making checks far harder to alter. You can request a security pen from any of our branch locations.
3. Never leave outgoing mail in residential mailboxes overnight
Raised mailbox flags are an easy signal for thieves looking for checks.
4. Monitor bank accounts closely after mailing checks and consider real-time alerts
Early detection can limit losses if fraud occurs. ARB consumer clients have access to Carefull, a complimentary fraud monitoring service that helps spot unusual activity early. ARB business clients can use positive pay services to match payees and/or amounts to their check registers before the funds leave the account.
5. Report mail theft immediately
6. Support prevention efforts
Engaging locally and nationally with legislators on mail‑security legislation like H.R. 2095 as well as community measures that emphasize deterrence helps strengthen protection for businesses and residents in our community.
Mail theft is no longer a nuisance crime—it is a primary entry point for large‑scale check fraud, identity theft, and account takeover and, when real‑time deterrence is removed, criminals often move faster than businesses can react.
While legislation like H.R. 2095 aims to restore prevention where theft occurs, the most immediate protection starts with awareness and everyday choices.
If you have questions or believe your account may have been compromised, American Riviera Bank is here to help. Please contact your local branch or our Client Services team right away.
1. Stolen checks from USPS drop boxes are part of rising cybercrime
2. Stark warning as thieves target USPS master keys: 'Just one key... and then you have access to hundreds of thousands of envelopes'
