Fake checks are like the Toyota Corolla of scams—simple, reliable, and around for a long time. Over the years, fake check scams have become more advanced and are one of the most common tricks scammers use. It’s important to watch out for them so you don’t become a victim.
How do check scams work?
A fake check scam works like this: A scammer gives you a fake check and convinces you to deposit it into your bank account. After that, they ask you to send them money. The scam works because the bank shows the money in your account quickly, even though the check is fake. This happens because of a law that was actually meant to help people.
“By law, banks and credit unions must let you use part of a deposit, even if the check is fake,” said Melissa Morgan, chief retail manager of Patelco Credit Union. “That’s why you should only deposit checks from people you trust.”
The law is called Regulation CC, and it was passed in 1987. Back then, people often had to wait a long time for their paychecks to clear. The law made banks release some money right away to speed things up. While technology has made depositing checks faster today, it has also made fake checks harder to spot.
“Advanced technology allows scammers to create fake checks that look very real,” said the Federal Deposit Insurance Corporation (FDIC). “These fake checks can fool even bank employees.”
After you see the money in your account, scammers ask you to send them money in different ways, like cash, personal checks, gift cards, wire transfers, or apps like Zelle, Venmo, or PayPal Friends and Family. But when the check bounces, the money is gone, and it’s almost impossible to get it back.
Be careful and only accept checks from people you trust!
The different types of fake check scams
Here are some of the most common fake check scams:
You won the lottery: Scammers tell you that you’ve won the lottery or a big prize. They send you a fake check, and you see the money in your account for a short time. But to claim the prize, they say you must pay “taxes and fees” first. Once you send the money, the check bounces, and you’re left with nothing.
Buying something from you: Scammers pretend to buy something you’re selling online, like a service, car, or apartment deposit. They send you a fake check for more money than you asked for. Then they say it was a mistake and ask you to send back the extra amount—or even the full amount. When the check bounces, you lose the money you sent back.
Offering you a job: Scammers offer you a job and send you money as “payment” for supplies or fees. Then they ask you to use the money to pay for things like “account activations” or other fake job expenses. In some scams, they ask you to “evaluate” money transfer services. You’re told to withdraw money from your account and send it to your “employer,” but you’re really giving away your own money.
How to spot fake check scams
o stay safe from fake check scams, follow these tips from the Federal Trade Commission (FTC) and FDIC:
If someone asks you to send money after giving you a check, it’s a scam. This includes wiring money or buying gift cards.
Even if the money shows up in your account, the bank can take it back later if the check is fake. Don’t send money if you don’t know the person who gave you the check.
If you’re selling something online, don’t accept a check for more than the price you asked for. That’s a red flag.
Make sure the check is from a real bank. Some fake checks may have a real bank’s name, but if the name is fake, it’s a clear sign of a scam. You can use the FDIC’s BankFind Suite to check if a bank is FDIC-insured in the United States.
Call the bank that issued the check to make sure it’s real. Look up the bank’s phone number on its official website. Don’t use the phone number printed on the check—it might be fake and lead you to the scammer. Once you have the official number, call the bank and give them the check number, date, and amount so they can verify it.
What to do if you were scammed
If you think someone has tried to scam you with a fake check, report it right away to one of these places:
- U.S. Postal Inspection Service: If you got the check in the mail, report it to them.
- State or local attorney general’s consumer protection office: They can help if the scam happened in your area.
- Internet Crime Complaint Center: If the scam happened online, file a complaint with this group.
For more help or information:
- Visit FDIC.gov.
- Call the FDIC at 1-877-275-3342.
- Contact the Federal Trade Commission (FTC).