How to Verify If a Check Is Real

Check fraud is a significant concern, resulting in billions of dollars in losses annually across the United States. For example, in 2023, financial institutions experienced over $1.3 billion in losses due to check fraud, encompassing counterfeit checks, altered checks, and remote deposit capture fraud. Consumers can also face substantial personal losses, with the median loss from fake check scams reaching nearly $2,000 in 2019 alone. Given the prevalence of these fraudulent activities, understanding how to verify the authenticity of a check is an important step in protecting one’s financial well-being.

Understanding Check Security Features

Legitimate checks incorporate security features designed to deter counterfeiting and alteration, allowing for preliminary visual inspection. Microprinting, for instance, involves extremely small text or patterns that appear as solid lines to the naked eye. When magnified, this tiny text, often found on signature lines or borders, becomes legible, and its absence or blurriness can indicate a fake.

Another security measure is the presence of watermarks, which are images or patterns embedded within the paper itself. These watermarks are visible when the check is held up to a light and cannot be easily replicated by copiers or scanners. Authentic watermarks are smooth to the touch, woven into the paper fibers during manufacturing. Color-shifting ink, also known as thermochromic ink, changes color when viewed from different angles or exposed to heat.

Chemical wash detection features are also commonly included to prevent alterations. This involves specialized paper that will show stains or patterns if chemicals are used to erase or modify information on the check. Additionally, genuine checks often have perforated edges, indicating a clean separation from a checkbook or larger sheet. A smooth edge where a perforated edge should be can be a red flag.

Many checks display a security padlock icon, signifying enhanced security measures and adherence to industry standards. Official bank logos, along with correctly formatted routing and account numbers, are important indicators of authenticity. The routing number, a nine-digit code, identifies the financial institution and its proper placement and readability are important for verification. Any inconsistencies in these printed elements or the absence of expected security features warrant further scrutiny.

Methods for Verifying Check Authenticity

Beyond visual inspection, several procedural steps can be taken to verify a check’s authenticity. A primary method involves contacting the issuing bank directly. It is important to obtain the bank’s official contact information from a reliable source, such as their public website, rather than using any phone numbers or websites printed on the check itself, as these could be fraudulent.

When contacting the bank, be prepared to provide specific details from the check, including:
The routing number
Account number
Check number
The payer’s name
The check amount
The date

While banks generally cannot disclose private account information, they may be able to confirm whether the check number and amount were legitimately issued from that account. Some banks may even offer online verification services for inputting check details.

Another important consideration is verifying the payer’s information, especially for large amounts or unusual circumstances. If the payer is a business, publicly available information such as business registration databases can offer insights into their legitimacy. If the check is from an individual, caution is advised against direct contact if fraud is suspected.

It is important to understand the distinction between funds being “available” and “cleared.” When a check is deposited, banks are often required by law to make a portion, or sometimes the full amount, of the funds “available” within one to two business days. This availability does not mean the check has fully “cleared” or that the funds have been transferred from the payer’s bank and are irreversible.

A check typically takes up to two business days to fully clear. Larger amounts (e.g., over $5,525) or new accounts (less than 30 days old) may have longer hold times, up to seven business days or more. Spending funds before a check has fully cleared can lead to significant financial liability if the check is later determined to be fraudulent.

Responding to a Suspect Check

If a check appears suspicious or is confirmed to be fraudulent, certain actions should be taken to mitigate potential harm and report the activity. It is important to never attempt to cash or deposit a check that is suspected of being fraudulent. Knowingly attempting to process a fake check can lead to serious consequences, including financial liabilities for the full amount, bank fees, account closure, and even legal repercussions.

The first step is to immediately report the suspicious check to your own bank, the institution where you would have deposited it. They can provide guidance and take necessary internal actions to prevent potential losses.

Reporting the fraud to relevant authorities is important. The Federal Trade Commission (FTC) is a primary resource for reporting fraud, especially for scams involving fake checks. For online scams, the Internet Crime Complaint Center (IC3) is the appropriate agency. If the suspicious check was received through the mail, the U.S. Postal Inspection Service (USPIS) should be contacted, as mail fraud falls under their jurisdiction.

Documenting everything related to the suspect check is also important. This includes keeping the check itself, any correspondence received, and detailed records of all communications with banks and reporting agencies. Finally, if personal information was provided or compromised during the scam attempt, steps should be taken to protect against identity theft. This may involve monitoring financial accounts, placing fraud alerts on credit reports, and changing passwords. Being proactive in reporting and documentation helps to protect both personal finances and contributes to broader efforts to combat check fraud.