How to Check if a Check Is Real Online
Protect yourself from check fraud. Discover how to identify suspicious checks and use online resources to verify their authenticity before depositing.
Check fraud remains a significant financial threat to individuals and businesses. In 2023, U.S. financial institutions lost over $1.3 billion to check fraud, including counterfeit and altered checks. Verifying check legitimacy is crucial, as falling victim can lead to financial setbacks. Understanding how to identify and respond to fraudulent checks helps protect personal finances.
Identifying Common Red Flags
Before online verification, examine the check and its circumstances for warning signs. Visual discrepancies often indicate fraud, such as poor printing quality, misspellings, unusual fonts, or faded ink. Authentic checks are typically printed on high-quality, matte paper, with ink that doesn’t smear when rubbed. Genuine checks usually have at least one perforated edge; all smooth edges might be suspicious.
Examine the Magnetic Ink Character Recognition (MICR) line at the bottom of the check. This line, containing routing, account, and check numbers, should be dull and flat; if shiny or raised, it could be counterfeit. The check number, found in the upper-right corner and within the MICR line, should match. Discrepancies or unusually low check numbers warrant caution. Verify the bank’s logo and address match their official website.
Suspicious circumstances surrounding a check’s receipt are strong indicators of fraud. Common scams involve receiving a check for an amount greater than expected, with a request to send back the overpayment via wire transfer, gift cards, or cryptocurrency. Unsolicited checks, especially for unentered lotteries or job offers requiring upfront payments, are typically fraudulent. Fraudsters often use pressure tactics, urging quick action before verification. The memo line or payee information should align with the reason for receiving the check; any inconsistency raises concerns.
Leveraging Online Resources for Verification
After identifying initial red flags, use online resources for further verification. Find the official contact information for the issuing bank. Do not use phone numbers provided on the check or by the sender, as these can connect you to a fraudster. Instead, search online for the bank’s official website and customer service number.
When contacting the bank, have specific check information ready: routing number, account number, check number, and issuer’s name. The bank can typically confirm routing number validity and account number format. Some banks may also confirm if the check number range is associated with the account. Due to privacy regulations, banks cannot disclose account balances or confirm a check’s validity for a non-account holder. They may only state whether funds are available to cover the check.
Online routing number lookup tools confirm if the routing number belongs to a legitimate financial institution. While these tools validate the routing number, they cannot verify the check’s authenticity or the account’s status. Research the check issuer online. Search for the business name to verify legitimacy, check for an online presence, and look for reports of fraud or scams. This provides context to determine if the check originates from a trustworthy source.
Taking Action Based on Verification
After verifying a check, next steps depend on the outcome. If legitimate and red flags addressed, safe deposit practices remain important. Most checks, including personal ones, typically take about two business days to clear; government or cashier’s checks may clear faster. Banks are legally required to make a portion of deposited funds, usually the first $225, available by the next business day. This distinction between “available” and “cleared” funds is important. Available funds allow access, but if the check is fraudulent, the bank can reverse the deposit, making you responsible for spent amounts. Therefore, wait for funds to fully clear—meaning money has transferred from the payer’s bank to your bank—before spending.
If a check is suspicious or confirmed fraudulent, do not deposit it. Depositing a fake check, even unknowingly, can lead to financial liability if it bounces. Report the fraudulent check to several authorities. Contact your own bank first. Then, report the incident to local law enforcement, as this constitutes a crime. File a complaint with federal agencies that combat fraud. The Federal Trade Commission (FTC) accepts reports of fake check scams. The Internet Crime Complaint Center (IC3), a partnership between the FBI and NW3C, is another avenue for reporting online crimes involving fraudulent checks. Keep detailed records of all communication, including dates, times, and names, along with the fraudulent check itself, as this documentation aids investigations. Finally, cease all engagement with the sender to prevent further deception.