Beware
Fake Check Scams Are on the Rise

Why Do Scammers Send Fake Checks?

Scammers use fake checks to trick people into sending them money. They often promise something enticing, like a job offer or a sweepstakes win, to lure victims.

The scam works because the bank initially credits the fake check to your account, making it seem legitimate. However, once the bank discovers the check is fraudulent, they'll reverse the transaction, leaving you with a loss. Scammers are motivated by financial gain; the more money they get from you, the better.

Warning Signs What Are the Signs of Fake Check Scams?

Fake checks can be sophisticated, but several red flags can help you identify them. Scammers often use advanced counterfeiting methods, so it's crucial to be vigilant.

Here are some key indicators to look for:

Irregular perforations: Genuine checks have clean perforations on at least one edge. A lack of perforations or rough edges can indicate a fake.

Missing or incorrect check numbers: Check numbers should be in sequential order and displayed correctly. Low check numbers (below 300 for personal and 400 for business checks) can be suspicious.

Incorrect routing codes: The routing number on the check should match the bank name. Verify the routing number on the Federal Reserve Bank Services website.

Odd MICR lines: Unusual characteristics in the magnetic ink character recognition (MICR) line can signal a fake. Shiny numbers in the MICR line are also suspect.

Notations in the memo area: Avoid checks that include "payroll" or "dividends".

Stains or discolorations: Look for any signs of alterations, such as stains, smudges, or erasures.

Poor-quality paper: Genuine checks are printed on thick, high-quality card stock. Thin, slippery paper is a red flag.

Ink that smears: Run a moistened finger across the check. If the ink smears, it may be fake.

Missing signature or logo: Ensure the check has an authorized signature and the bank's logo.

Words such as “Void” or “non-negotiable” appearing on the check. Such notations indicate that the check is no longer valid or has certain limitations.

Incorrectly typed or printed name and address of the drawee

Government checks in which the dollar box has a different print style.

Missing customer name and/or address.

Numerical and written check amounts that don’t match.

Missing lender logo.

Protect Yourself How to From Fake Check Scams

Protecting yourself from fake check scams requires vigilance and caution.

Here's how:

Don't send money to people you don't know. Scammers often pressure you to send money quickly. Never send money to someone you haven’t met in person or don’t know well.

Inspect security features. Check manufacturers use security features like watermarks and microprinting to deter counterfeiting.

Wait for the check to clear. Even if your bank credits the funds to your account, it doesn't mean the check is legitimate. It can take two weeks or longer for a check to clear. Check with your bank about its funds availability policy.

Verify suspicious checks. Call the issuing bank to confirm the check's authenticity. Be especially wary of checks from unknown sources or for unusually large amounts.

“

Fake checks are a common tactic scammers use to steal your money. Vigilance and awareness are your best defenses.

Identity Guard

Report Fake Checks and Related Scams Right Away

If you suspect a fake check scam, report it immediately to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. You should also report the scam to your bank and the bank associated with the fraudulent check.