How to Identify a Fake Check and What to Do

Fake checks pose substantial financial risks to individuals and businesses. These fraudulent instruments often appear legitimate, but recipients typically bear responsibility for deposited funds later identified as counterfeit. Recognizing these checks is important for safeguarding financial well-being.

Common Indicators of a Fake Check

Identifying a fake check involves recognizing its physical attributes and suspicious circumstances. Physical cues on the check can reveal inauthenticity. These include poor print quality, such as blurry logos, inconsistent font styles, or misspellings. The paper might feel unusually thin, glossy, or different from standard check paper. Security features like watermarks or microprinting may be absent, poorly replicated, or non-functional.

Physical inspection may reveal suspicious routing numbers not corresponding to legitimate financial institutions, or incorrect account numbers. Any signs of alteration, such as erased or written-over information, are also red flags.

Situational red flags often accompany fake check scams. Common scenarios include receiving a check for an amount greater than expected, with an immediate request to return excess funds via wire transfer or gift cards. Other warning signs include unexpected winnings from a lottery or sweepstakes never entered, or unsolicited job offers, such as mystery shopper assignments, involving depositing a check and forwarding funds to a third party. Foreign transactions or pressure to act quickly and deposit the check without proper verification indicate potential fraud. These schemes often present a deal that appears too good to be true.

Confirming a Check’s Authenticity

When a check’s legitimacy is suspected, several steps can verify its authenticity. Directly contact the issuing bank to confirm the check’s validity and the availability of funds. Obtain the bank’s contact information from its official website or a public directory, rather than using any phone numbers printed on the check, as scammers often include fake contact details.

Another verification method is to contact the person or company supposedly issuing the check. This contact should be made using independently verified information, such as a phone number from their official website or a trusted business directory, not from the check or any accompanying correspondence. This helps ensure communication is with the legitimate entity.

Understand that funds becoming available in an account does not mean the check has fully cleared and is legitimate. Federal regulations require banks to make deposited funds available within one to two business days, even if the check has not yet been processed by the issuing bank. However, it can take days to weeks for a fraudulent check to be identified and returned by the issuing bank, at which point the deposited funds will be debited from the recipient’s account.

Actions to Take When You Receive a Fake Check

If a check is identified as fake, the most important immediate action is to avoid depositing or cashing it. Depositing a counterfeit check, even unknowingly, can make the recipient liable for the full amount once the fraud is discovered, leading to significant financial loss, bank fees, or even account closure. Any funds spent or transferred from a fake check will likely need to be repaid by the account holder.

Reporting the fraudulent check is a next step. The Federal Trade Commission (FTC) accepts reports of fraud through ReportFraud.ftc.gov. If the check was received online or through email, the Internet Crime Complaint Center (IC3), a division of the FBI, is the appropriate agency to file a complaint. For checks received via physical mail, the U.S. Postal Inspection Service (USPIS) investigates mail fraud. It is also advisable to inform your own bank about the attempted fraud, even if the check was not deposited.

Maintaining thorough records is also important. Keep the fake check itself and all related correspondence, such as emails, text messages, or letters, as evidence. This documentation can be crucial for law enforcement investigations. Finally, exercise caution regarding requests for personal or financial information from unknown parties, especially in connection with unexpected checks or offers.