Identifying fraudulent checks

We all love getting paid, but not every check out there is real. Whether you’re selling something online or have just received an unexpected check in the mail, it’s best to be cautious! Keep reading for tips on identifying fraudulent checks so you can avoid falling victim to a check scam.

Common check scams

There are a variety of check scams out there, but here are few common ones to keep an eye out for:

• The sender claims you won a sweepstakes or giveaway. When they do this, they may ask that you deposit the check and send back a portion to cover taxes and fees.
• You sold an item online and the buyer sends you a check that’s suspiciously higher than the amount you agreed upon. They then may ask you to return a portion of the money as “overpayment.”
• Cashing a check for someone else. This is where a stranger approaches you and asks you to cash a check for them. They may claim that they don’t have a bank account. Once you make the deposit and withdraw the cash, you’ve then paid the stranger with your money, not the fraudulent check.

Follow these steps to identify fraudulent checks

Inspect the check

Don’t deposit the check if it has:

• An unusual amount: The check shouldn’t be written for more money than you expect. Make sure the amount is accurate if you’re expecting a check for an item you’re selling or any other transaction.
• Mismatched personal details: Confirm that the payee’s name, business, or personal address are valid and match what you know about the person or business paying you. You can look up businesses on the Better Business Bureau website.
• Missing items or other red flags: The check might be missing a signature, a bank address or logo, or security features such as watermarks or padlock icons. Fraudulent checks can have misspellings, too.

Whether it’s a personal, business, cashier’s, or certified check, it’s always best to check for red flags. But the check itself shouldn’t be the only thing you consider when trying to identify fraud.

Ask yourself why you received the check

If you receive a check in the mail that seems odd, figure out who’s giving you money and their motive. Research the person or business to see if the payment makes sense and check any emails or other communication you had with them.

Centra’s here to help. If you ever question why you’ve received something, trust your instincts and ask for help to verify the check. If it seems too good to be true, it probably is.

Don’t use the money

If you’ve deposited a check that you suspect may be fraudulent, don’t spend the money.

When you deposit a check, it goes through an automatic review process to be cleared. While the money may show as deposited in your account, that doesn’t always mean the check is good. It could still be under review to ensure it’s not fraudulent.

If the check bounces, the amount of the check will be deducted from your account. If you’ve already spent the money, that could lead to other complications on your account if you don’t have enough money to cover the deduction.

Receiving money that you didn’t ask for is like getting a pizza delivery when you didn’t place an order. You question where it came from, and you figure that it might not be safe to eat. Fraudulent checks might show up in the same way, but just like the unexpected pizza, you should be careful.

If you know someone who’s received a check recently, please share this information with them, too, so they can be informed on identifying fraudulent checks. For more information on fraudulent schemes, check out our Fraud Protection and Prevention Center.