Do Scammers Send Fake Checks? How to Spot the Scam

Fake check scams represent a significant financial threat. These deceptive schemes often result in substantial monetary losses. Understanding how they operate and how to protect oneself is essential. Consumers reported a median loss of nearly $2,000 to fake check scams.

How Fake Check Scams Work

Fake check scams exploit the banking system’s check processing timelines. A scammer sends a check that appears legitimate, often for an amount exceeding what was agreed upon. The recipient is then instructed to deposit this check into their bank account. The scammer typically requests that a portion of the deposited funds be sent back to them or a third party using an untraceable method, such as a wire transfer or gift cards.

Banks are required to make deposited funds available to account holders within one to two business days for most checks. This quick availability creates a false sense of security, as the check itself may take much longer to fully clear and be verified by the issuing bank. The scam unfolds when the recipient sends money back to the scammer, only for their bank to later discover the original check was fraudulent. When the fake check ultimately bounces, the deposited amount is removed from the recipient’s account, leaving them responsible for any funds already sent to the scammer, plus potential bank fees.

Typical Fake Check Scam Narratives

Scammers employ various narratives to convince individuals to accept and deposit fake checks. One common scenario involves mystery shopping scams, where individuals are hired to evaluate money transfer services. They receive a check for expenses and compensation, with instructions to wire a portion back after making a small purchase.

Another frequent tactic is the overpayment scam, often targeting individuals selling items online. A buyer sends a check for an amount greater than the agreed-upon price, asking the seller to refund the excess. The scammer provides a fabricated reason for the overpayment, such as an accounting error or a need to cover shipping costs.

Lottery or sweepstakes scams commonly use fake checks, informing recipients they have won a large sum. To claim winnings, “winners” are told to pay “taxes” or “fees” by sending back a portion of the provided check. Job offer scams involve a new employer sending a check for initial supplies or training fees, with a request to return some funds. Rental scams can also involve overpayment from a tenant or landlord, requesting a return of the excess.

How to Spot a Fake Check

Identifying a fake check requires careful attention to several details that often betray its fraudulent nature. The physical appearance of a counterfeit check may reveal poor printing quality, misspellings, or incorrect fonts that differ from legitimate banking documents. The paper itself might feel unusual, such as being too smooth or flimsy.

Discrepancies in bank information are also red flags; for instance, a bank name might not match the routing number, or the address listed may not exist or belong to the stated bank branch. Checks for unusually high amounts, especially if unexpected or from unknown individuals or companies, should immediately raise suspicion. Any request to quickly send money back via wire transfer or gift cards before the check fully clears is a strong indicator of a scam.

Legitimate checks incorporate security features like watermarks, microprinting, and security threads; the absence or poor replication of these features can signal a fake. Magnetic Ink Character Recognition (MICR) lines at the bottom of the check should be dull, not shiny, and consistently printed without smudges or alterations.

Actions to Take Against Fake Checks

If you receive a suspicious check, it is important to avoid depositing it. Instead, contact the bank on which the check is drawn directly to verify its legitimacy. Use a phone number obtained from the bank’s official website or a public directory, rather than any contact information provided on the check itself, as scammers often include fake details. It is also advisable to cease all communication with the individual or entity who sent the check.

Reporting fake check scams is an important step in combating these criminal activities. You can file a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. If the check was received through the mail, report the incident to the U.S. Postal Inspection Service (USPIS). For online crimes involving counterfeit checks, the Internet Crime Complaint Center (IC3), a division of the FBI, is the appropriate reporting agency.

If you deposit a fake check, you will typically be held responsible for the funds when it bounces. Immediately contact your bank to explain the situation and seek guidance on the next steps, as they may charge fees for processing a fraudulent item. Protecting yourself involves remaining cautious of unsolicited offers, verifying the legitimacy of any unexpected payments, and never wiring money or sending gift cards to strangers.