How to Tell If a Check Is a Scam and What to Do Next

Fraudulent checks pose a threat to financial security. Scammers use various methods to distribute counterfeit checks, aiming to defraud recipients. Understanding how to identify these checks and the situations surrounding them is key to safeguarding personal finances.

Recognizing Scam Scenarios

Fraudulent checks often arrive with a narrative designed to manipulate recipients. One common scheme involves an “overpayment” scenario, where a check exceeds what is owed. The sender claims an error and requests a refund of the excess, typically via wire transfer or gift cards, before the bank identifies the check as counterfeit.

Another tactic involves lottery or sweepstakes scams, where individuals receive a check as purported winnings from a lottery they never entered. These checks often come with instructions to deposit funds and then send a portion back for “taxes” or “processing fees.” Work-from-home or mystery shopper scams also use fake checks, sending funds to purchase supplies or conduct a task. Recipients are then instructed to deposit the check, use some funds, and return the rest to the scammer.

Unsolicited checks are a strong indicator of potential fraud, especially from an unknown sender or for an unexpected reason. Their sudden appearance without prior communication is suspicious. Scammers often create urgency, pressuring recipients to deposit the check quickly and send money back before the financial institution detects the fraud. This pressure aims to bypass the typical check clearing process.

Communication accompanying these checks often shows unprofessionalism or deception. This includes grammatical errors, unusual phrasing, or generic salutations. The narrative aims to distract from the fraudulent nature. These contextual red flags are often the first line of defense.

Spotting Fake Check Characteristics

Beyond situational context, a check’s physical attributes can reveal its fraudulent nature. Poor printing quality is a common indicator, with fuzzy logos, misaligned text, or unusual fonts. Genuine checks have crisp lines and clear details.

Paper quality can also be a red flag; genuine checks are typically printed on heavier, secure stock, while counterfeits might feel thin or flimsy.

Examination of the bank information is important, including the bank name, address, and routing number. Scammers may use a real bank name but pair it with an incorrect routing number. Verify the routing number through an independent source.

The check number, usually in the upper right corner, can offer clues. A missing, out-of-sequence, or unusually low check number for a business check might suggest it is not legitimate. Signatures on fraudulent checks often appear photocopied, smudged, or generic, lacking distinct characteristics.

Security features embedded in legitimate checks are frequently absent or poorly replicated. These include microprinting, security threads, watermarks, and chemical wash detection boxes. The absence or poor reproduction of any of these features confirms fraud. Inconsistent spacing or mismatched fonts also suggest alteration.

Verifying and Reporting Suspected Scams

If a check appears suspicious, do not deposit or attempt to cash it. Depositing a fraudulent check, even unknowingly, can lead to significant financial liability. While banks may provide provisional credit, this credit is temporary. If the check is later identified as counterfeit, the bank will reverse the credit, and the account holder will be responsible for repaying withdrawn funds, potentially incurring overdraft fees.

Take the suspected check directly to your financial institution. Explain your concerns to a bank representative without attempting to deposit it. They can examine the check and advise on its legitimacy.

Independently verify the issuing bank’s information. Locate official contact information through a reliable source, such as the bank’s public website, rather than using details provided by the suspected scammer. Contact the issuing bank directly to inquire about the check’s validity. They can confirm if the account and check numbers are legitimate.

Never send money back to the individual or entity that provided the suspicious check. This is how scammers profit, and complying will result in a direct financial loss. The funds sent will be irrecoverable once the original check is determined to be fraudulent.

Report suspected check scams to help prevent others from falling victim. The Federal Trade Commission (FTC) accepts complaints regarding fraud. The Internet Crime Complaint Center (IC3) is another avenue for reporting internet-related financial crimes. Local law enforcement agencies can also be contacted to file a police report.