Fake Check Scams: Why a Check That “Clears” Can Still Be Fake
You get a check in the mail, or a payment shows up in your account. It is more than you were owed, and the sender asks you to send some of it back. It feels like an honest mistake. The FTC says this is always a scam. Here is how it works and what to do.
How a Fake Check Scam Works
A stranger sends you a check, often for several thousand dollars. They give a reason you should send part of the money to them or to someone else. Common reasons are taxes, fees, supplies for a job, or a refund of an “overpayment.” By the time the bank finds the check is fake, your money is gone.
The FTC describes several versions:
- Overpayment. A buyer pays you by check for more than the price, then asks you to refund the difference.
- Mystery shopper or “assistant” jobs. You deposit a check, then wire money or buy gift cards and send the numbers to your “boss.”
- Prizes. A sweepstakes sends a check and asks you to pay taxes or fees before you can collect.
- Fake deals. You are told to deposit a check and pay “installers” or other workers who do not exist.
Why It Fools People
The FTC says fake checks generally look like real ones, even to bank employees. They can show real bank names and addresses. Some are real checks drawn on the account of someone whose identity was stolen.
Banks must make deposited money available quickly. But the FTC warns: even if you see the funds in your account, that does not mean the check is good. It can take weeks to find out a check is fake. Until then, the scammer has your money, and you owe the bank whatever it takes back.
Red Flags
- A stranger sends a check for more than the price or the amount owed.
- You are asked to send money back, or to pay someone else from the check.
- You are told to pay by gift card, cryptocurrency, or wire transfer (such as Western Union or MoneyGram).
- You must pay a fee to collect a “free” prize.
- A job asks you to deposit checks and forward money.
What to Do
- Do not deposit the check, and do not send money. If it is a sale, you can ask for a different payment or simply cancel.
- Do not rely on money from a check unless you know and trust the person who sent it.
- Talk to someone you trust, or call your bank, before acting on a check you did not expect.
If You Already Deposited It and Sent Money
This can happen to anyone, and it is not your fault. Act quickly. The FTC suggests:
- Gift cards: tell the card company right away that the card was used in a scam, and tell the store where you bought it.
- Wire transfer: call the wire company at once and ask for a reversal. The FTC lists MoneyGram at 1-800-666-3947 and Western Union at 1-800-325-6000. A reversal is unlikely, but it is worth asking.
- Money order: contact the company that issued it to try to stop payment. If it went by U.S. mail, call the Postal Inspection Service at 877-876-2455.
- Cryptocurrency: contact the company you sent it from, report the transaction as fraud, and ask for a reversal if possible.
Also call your bank and tell them what happened.
Report It
Reporting helps others. You can report to the FTC at ReportFraud.ftc.gov, to the Postal Inspection Service at uspis.gov/report, and to your state attorney general. The National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311), can also help. For more steps, see Paid a Scammer? What to Do Right Away.
More on Seniors Tips
- Paid a Scammer? What to Do Right Away
- Gift Card Scams: Why Only a Scammer Asks You to Pay This Way
- “You’ve Won!” How to Spot Fake Prize, Sweepstakes and Lottery Scams
