How to Tell if a Mobile Check Is Fake?

Mobile check deposits offer a convenient way to manage finances. This digital ease has also created opportunities for fraudsters. Fake check scams are increasingly prevalent, leveraging mobile deposit technology to trick unsuspecting individuals into financial loss. Understanding these scams and recognizing red flags is important for protecting financial security.

Identifying Warning Signs on a Check

Scammers often create fake checks that appear legitimate, making it challenging to spot fraud. An immediate indicator of a counterfeit check is its visual quality. Look for poor print resolution, blurry logos, or uneven ink, which can suggest a home-printed forgery. Misspellings, grammatical errors, or unusual fonts on any part of the check are also red flags.

The details about the payer or the context of the payment also signal a scam. Be wary if a personal check is issued from what purports to be a business, or if the check comes from an unknown individual or company for an unexpected reason, such as lottery winnings or an inheritance. Checks with amounts that seem “too good to be true” or include odd cents, like $2,450.73, rather than round numbers, can be suspicious. A common tactic involves receiving a check for more than the agreed-upon amount, with instructions to send back the excess funds to a third party.

Communication from the sender often contains additional warning signs. Urgent demands to deposit the check and wire funds quickly, poor grammar in emails or messages, or requests for personal financial details beyond what is necessary are indicators of fraud. Scammers may invent elaborate stories to explain why they cannot directly access the money themselves, making their requests seem plausible.

Steps to Verify a Check’s Authenticity

Before depositing any suspicious check, proactive verification steps can prevent financial loss. Crucially, contact the bank purportedly issuing the check to confirm its validity. Independently find the bank’s official contact information (public website or trusted directory), rather than using any phone numbers provided on the check itself or by the sender, as these can be fraudulent. Inquire if the check number and amount correspond to a legitimate account and issued payment.

Examine the check’s ABA routing number, the nine-digit number typically found at the bottom left of a check. You can research this routing number online to ensure it corresponds to the stated financial institution and its location. Discrepancies here can indicate a fake check, as scammers sometimes use real routing numbers with fictitious account information.

If the check is from an unfamiliar individual or business, research on the payer can provide additional insights. Search for the company’s official website, reviews, or any reported scams associated with their name. Legitimate businesses generally have an established online presence. Never provide personal financial details, such as online banking login credentials, to the sender, and always be cautious about sending money back to them, as this is a common component of fake check scams.

How Bank Funds Availability Works

Understanding how banks process checks helps recognize fake check scams. When you deposit a check, your bank is generally required by federal law (Regulation CC) to make the funds available within a few business days, often within one to two days for most checks. This quick availability, however, does not mean the check has fully cleared or that the funds are genuinely available from the issuing bank.

Banks place holds on deposited checks to allow time for funds to be transferred from the issuing bank. While some funds, typically the first $225, might be available on the next business day, the full amount can take longer to clear, sometimes up to two weeks, especially for larger amounts or new accounts. Scammers exploit this “float” period, pressuring victims to quickly send money back before the fake check is identified as fraudulent.

Once funds are made available, the scammer will insist that the victim wire money back for an “overpayment” or other fabricated reason. When the issuing bank eventually identifies the check as counterfeit, the deposited amount is reversed from the victim’s account. The account holder is typically held responsible for the entire amount of the fraudulent check, even if they have already spent or wired the funds, leading to financial loss.

Actions to Take When Facing a Fake Check

If you suspect a check is fake before depositing it, avoid depositing it. Document the check by taking clear photos of the front and back, along with any accompanying communication from the sender. After documenting, securely destroy the check, preferably by shredding it, to prevent further misuse.

Report the attempted scam. You can report it to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, the Internet Crime Complaint Center (IC3) at ic3.gov, or your state’s Attorney General’s office. Informing your own financial institution is also advisable, as they may have internal procedures for tracking such attempts. This helps law enforcement and financial institutions combat these fraud schemes.

If you have already deposited a fake check and funds were made available, do not spend or transfer any money. Contact your bank immediately to explain the situation. They will guide you through their process for handling fraudulent deposits, which often involves reversing the credit to your account. Under no circumstances should you send any money back to the scammer, regardless of their demands or threats.