Check & Payment Fraud

Don’t Let a Fake Check Become Your Financial Loss.

Although electronic payments are increasingly common, checks remain a target for criminals. Fraudsters use counterfeit, altered, and stolen checks to deceive individuals and businesses into sending money or providing goods and services.

Understanding how check fraud works can help protect your finances.

Common types of check fraud

Counterfeit Checks

A criminal creates a fake check that appears to have been issued by a legitimate person, business, or organization.

Altered Checks

A legitimate check is intercepted and modified. Criminals may change the payee’s name or the dollar amount.

Stolen Checks

Checks are stolen from mailboxes or other locations and used fraudulently.

Fake Check Overpayment Scams

A scammer sends a check for more than the agreed-upon amount and asks you to return the difference.

The original check may initially appear to clear, but it can later be returned as fraudulent. You may then be responsible for the amount you sent back.

Understand mobile deposit fraud

Mobile check deposit is a convenient way to deposit checks using your smartphone. However, scammers may attempt to exploit this service.

Common schemes include:

• Sending a counterfeit check and asking you to deposit it.
• Offering payment for a job, prize, or online purchase using a fraudulent check.
• Asking you to deposit a check and return a portion of the money.
• Providing a check for an amount greater than what was agreed upon.

Important: Funds appearing available in your account does not necessarily mean a check is genuine or that it will not be returned.

Protect yourself from check fraud

• Be cautious when accepting checks from people you do not know.
• Never accept an overpayment with instructions to send money back.
• Verify unexpected checks directly with the issuing organization using independently obtained contact information.
• Review checks carefully for alterations or inconsistencies.
• Secure your checkbook and unused checks.
• Monitor your account for unfamiliar deposits and withdrawals.
• Avoid mailing checks from unsecured mailboxes.
• Contact your financial institution if you suspect a check may be fraudulent.

Be careful when selling items online

A common scam involves someone purchasing an item online and sending a check for more than the agreed-upon price.

The buyer then asks the seller to return the extra money or pay a delivery service.

The check is later returned, leaving the seller responsible for the money already sent.

What should you do if you deposit a suspicious check?

If you believe you have deposited a counterfeit or fraudulent check:

1. Contact your financial institution immediately.
2. Do not spend or transfer funds associated with the suspicious check.
3. Do not send money back to the person who provided the check.
4. Preserve messages, emails, check images, and other relevant information.
5. Follow your financial institution’s instructions.

Remember

A check can appear legitimate, and funds may become available, even when the check is fraudulent.

Never send money back based on the assumption that a deposited check has been verified.