How to Spot Fake Checks: Red Flags & What to Do

Fake check scams represent a significant financial threat to individuals across the United States. These deceptive schemes often involve authentic counterfeit checks, making them difficult to distinguish from legitimate financial instruments. Victims experience substantial losses because banks are required by law to make deposited funds available quickly, even before the check has fully cleared the banking system. This legal requirement, the Expedited Funds Availability Act, allows scammers to exploit the time difference between funds being made available and the check’s actual clearance.

A deposited fake check can appear in an account within a day or two, creating a false sense of security for the recipient. However, if the check is later identified as fraudulent, the bank will reverse the transaction, and the victim becomes responsible for repaying any funds spent. Identifying these fraudulent instruments is important for protecting one’s financial well-being. This article will explore common fake check scenarios, visual red flags, verification steps, and actions to take if you encounter a suspicious check.

Common Scenarios Involving Fake Checks

Fake checks are often used in schemes designed to trick individuals into parting with their money. The overpayment scam is a prevalent scheme where a check is sent for an amount greater than agreed upon. The sender then requests the excess funds be returned, often via wire transfer or gift cards, before the original check clears. This occurs frequently in online sales or rental agreements.

Another common scenario involves unsolicited checks for lottery or sweepstakes winnings. These checks include instructions to send back a portion for “taxes” or “processing fees.” Recipients often never entered such contests, raising suspicion about the winnings.

Job-related scams, such as “secret shopper” or work-from-home opportunities, also use fake checks. Individuals receive a check to purchase items or services, with instructions to wire back remaining funds. The check is counterfeit, and the victim loses the wired money.

Online romance scams involve a supposed love interest sending money to a victim, then asking them to forward funds to a third party. The emotional manipulation makes these scams effective when the check inevitably bounces.

Inheritance scams involve an unexpected check from an unknown relative, requesting upfront fees to “release” funds. In all these scenarios, an unexpected check is coupled with an urgent request to send money back to an unknown party.

Visual and Physical Red Flags on Checks

Counterfeit checks often have physical inconsistencies. Paper quality is an indicator; legitimate checks use heavier stock, while fakes may feel flimsy, glossy, or rough. Any deviation from a crisp feel warrants scrutiny.

Print quality on counterfeit checks often shows imperfections. Look for blurry text, misaligned numbers, or faded ink, especially in the bank’s name, routing, or account number. Signs of alteration, like white-out or different fonts, indicate fraud.

Bank information on the check provides clues. Examine the bank’s name, address, and logo for misspellings, generic names, or inconsistencies. Legitimate checks have clear, professional details; any deviation or amateurish appearance is a red flag. A P.O. box as the bank’s address is also suspicious.

Routing and account numbers also warrant examination. Routing numbers, nine digits long, identify the financial institution and should align with the bank’s location. While online verification tools are not advisable, any unusual format or mismatch should raise concern. Check numbers out of sequence or unusually low for a business check can suggest fraud.

Legitimate checks include security features to prevent counterfeiting. These may include:
Microprint (tiny text that appears as a solid line if copied)
Security threads
Watermarks that are visible when held to light
Chemical wash detection boxes that change color if altered

Absence or poor replication of these features, like pixelated watermarks or printed security threads, indicates a fake check. Signatures that appear too perfect or pixelated may also suggest they were digitally copied and not physically signed.

Steps to Verify a Check’s Authenticity

If a check arrives unexpectedly or seems suspicious, verify its authenticity before depositing or cashing it. Contact the issuing bank directly. Find their official phone number through their legitimate website or a trusted directory, not from the check or sender, as those could be part of the scam.

When contacting the bank, provide the check number, amount, and account holder name if available. Ask if the account exists and if the check was legitimately issued. Some banks may only confirm account existence due to privacy, but this information helps assess authenticity.

If the check is from a known individual or company, contact them directly using independently verified information, not details from the check or sender. This confirms if they sent the check and for what purpose. If they deny sending it or circumstances seem off, it indicates fraud.

Understanding the difference between “available” and “cleared” funds is important. The Expedited Funds Availability Act requires banks to make a portion of deposited funds, like the first $225, available the next business day. However, this does not mean the check has fully cleared. It takes two business days for a check to clear, sometimes longer for larger amounts or suspicious deposits.

Wait several business days, or weeks for large sums or checks from unknown senders, for the check to fully clear before using funds. Using funds before a check clears can result in financial liability if the check is fake. If uncertain, take the check to a local branch of the issuing bank for verification, rather than depositing it at your own bank.

Actions to Take If You Identify a Fake Check

If you suspect or confirm a fake check, act immediately to protect yourself and combat fraud. Do not deposit or cash it. Depositing a fake check, even unknowingly, can lead to your bank holding you responsible for the full amount if it bounces, potentially incurring overdraft fees.

Do not send money back to the scammer. Even if your bank made funds available, they will be retracted once the check is identified as counterfeit, resulting in a direct loss. Scammers pressure victims to act quickly to prevent verification.

Inform your bank about the suspicious check, especially if deposited. Your bank can help you understand the impact on your account and reverse transactions. Providing details about the check and its receipt assists them in monitoring for similar fraud.

Report the incident to appropriate federal authorities to assist law enforcement. The Federal Trade Commission (FTC) handles consumer complaints at ReportFraud.ftc.gov. For online communication scams, file a report with the Internet Crime Complaint Center (IC3), managed by the FBI. If the fake check was sent via U.S. mail, report it to the U.S. Postal Inspection Service (USPIS).

Keep records of all scam-related communications, including emails, text messages, and physical mail. Retain the fake check, but do not deposit it. This documentation provides evidence for your bank and law enforcement.