How to Know If an Online Check Is Fake

Online check fraud is a growing concern. Understanding how to identify fake checks is crucial for protecting personal finances. Scammers use sophisticated methods to deceive individuals, making vigilance in digital transactions essential. This article provides knowledge to recognize and prevent falling victim to check fraud.

Understanding Online Check Scams

“Online checks” refer to checks received through digital means or associated with online interactions, such as job offers, online sales, or unexpected windfalls. These include images sent via email or physical checks received by mail after an online exchange. Scammers use convincing narratives to trick individuals into depositing fraudulent checks.

A common scenario is the overpayment scam, where a scammer sends a check for more than the agreed-upon amount for an item or service. They then ask the recipient to refund the “excess” amount, typically via wire transfer or gift cards, before the fake check is discovered. Other scams involve fake lottery winnings, requesting “taxes” or “fees,” or mystery shopping and fake job offers requiring a check deposit for “supplies” and wiring back funds. These schemes exploit the fact that banks must make deposited funds available quickly, often before the check fully clears, leaving the victim responsible for the loss when the check bounces.

Identifying Red Flags in Checks

Scammers use advanced technology to create counterfeit checks that often appear legitimate, making them difficult to distinguish. However, several specific indicators can signal that a check might be fraudulent.

Physical Appearance

Examining the check’s physical appearance is a key step. Look for blurry printing, incorrect fonts, or unusual paper quality, which may feel thin, flimsy, or overly smooth. Legitimate checks typically have at least one perforated or rough edge, so if all four edges are smooth, it could be a sign of a fake.

Pay close attention to the bank logo and address on the check; a faded or distorted logo, or one that does not match the official bank logo, can indicate fraud. Misspellings or typos in the bank’s name, address, or other printed information are also red flags. The Magnetic Ink Character Recognition (MICR) line at the bottom of the check, which includes the routing, account, and check numbers, should be dull and not shiny; if it appears shiny or the characters are raised, it suggests a counterfeit. Additionally, discrepancies between the numerical and written amounts, or the absence of an authorized signature, are clear warning signs.

Transaction Context

Beyond the physical attributes, the context of the transaction can also reveal red flags. Be suspicious if you receive an unsolicited check, especially for an amount significantly higher than expected. Scammers often pressure recipients to act quickly, deposit the check, and send money back before the check can be verified. Any request to send money back, especially via untraceable methods such as wire transfers, gift cards, or cryptocurrency, should raise immediate suspicion, a common tactic in overpayment scams.

Methods for Verifying Check Legitimacy

If a check raises suspicions, active investigation is important.

Contacting the Issuing Bank

The most direct method to verify a check’s authenticity is contacting the issuing bank. Find the bank’s official phone number from its website or a reliable directory, not from the check itself, as this could be part of the scam. When speaking with the bank, provide the check number, issuance date, and the amount to inquire about its validity.

Checking the Routing Number

Another verification step involves checking the routing number (ABA routing transit number), which identifies the financial institution. Use an online lookup tool to ensure the routing number corresponds to the bank named on the check. If the information does not match, it is a significant indicator of fraud. While some banks may not disclose specific account details due to privacy regulations, they can often confirm if the account exists or if the check is valid.

Understanding Fund Availability

Funds becoming available in your account do not mean the check is legitimate. Federal law mandates banks make deposited funds available quickly, often within one or two business days. However, it can take weeks for a bank to discover a fake check. If the check is later found to be fraudulent, your bank will withdraw the amount from your account, and you will be responsible for the loss, including potential overdraft fees. Therefore, it is advisable to wait several weeks before spending money from a newly deposited check if there is any doubt about its authenticity.

Actions to Take Against Suspected Fraud

If you suspect a check is fake or have confirmed it as fraudulent, take immediate action to protect yourself. Do not deposit the check. Depositing a fake check, even unknowingly, can lead to negative consequences like your bank withdrawing funds, charging fees, or closing your account.

Report the incident to the appropriate authorities. If the check was received through the mail, contact the U.S. Postal Inspection Service (USPIS). For online scams or those involving electronic checks, file a complaint with the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3), a joint project of the FBI. Notify your bank immediately; staff can guide you on next steps. Avoid further communication with the scammer, refrain from sending them money or personal information, and monitor your accounts for unusual activity.