Fake Bank Check Scams: How to Identify and Avoid

Fake bank check scams can be tricky to spot, but there are some key red flags to look out for.

The scammer will typically send you a check that's higher than the agreed-upon amount, and then ask you to deposit it and wire them the difference.

This is often done through email or text message, and the scammer may claim to be a representative of a bank or financial institution.

Be cautious of unsolicited checks, as these are often a sign of a scam.

Fake bank checks are a type of fraud that can be tricky to spot. Scammers send you fake or fraudulent checks and then request that you deposit the money and send it somewhere else.

The Federal Expedited Funds Availability Act (EFAA) is a federal law that allows banks to make funds available within one or two business days after a check is deposited. This means that even if a check is counterfeit, the bank will initially make the funds available to you.

Here's an example of how a typical fake check scam plays out:

This can leave you in a difficult financial situation, with a debt in your bank account instead of the expected balance.

Fake bank checks are a common tool used by scammers to get your money. They can be convincing, but they're often fake and can leave you with financial losses.

Mystery shopping scams are a type of fake bank check scam where you're hired to evaluate a retailer that sells gift cards, money orders, or wire transfer services. You're told to deposit the check and wire some of the money to someone else, but once you do, the money is gone.

Personal assistants are another type of scam where you're hired online and told to use the money to buy gift cards and send the PIN numbers to your "boss." But that's a scammer, and once they get the gift card PINs, they use them instantly.

Car wrap decals, claiming prizes, and overpayments are also types of fake bank check scams. In the case of car wrap decals, you're told to deposit a check and then send money to decal installers. But it's a scam, the installers aren't real, and now your money is gone.

Here are some common fake bank check scams to watch out for:

If you receive a check related to a deal that seems too good to be true, trust your instincts and don't deposit the check. Verify that it's real before taking any action.

Fake bank checks can be convincing, even to bank employees. They're often printed with the names and addresses of legitimate financial institutions.

It can take weeks for a bank to figure out that the check is a fake.

Fake bank checks work because of a federal law that requires banks to make funds available quickly. This law is called the Federal Expedited Funds Availability Act (EFAA).

The EFAA stipulates that banks must make funds available within one or two business days after a check is deposited. This means that even if a check is counterfeit, the bank will initially show the funds as available in your account.

Here's a step-by-step breakdown of how a fake check scam works:

This scam succeeds because just because the funds show up in your bank account doesn't mean the check is legitimate. The bank may take longer to verify the check's authenticity, and by then, you've already sent the money to the scammer.

Fake bank checks can be incredibly convincing, even to bank employees. They're often printed with the names and addresses of legitimate financial institutions.

These scams can be especially tricky when they're based on real checks written on bank accounts that belong to someone whose identity has been stolen.

It can take weeks for a bank to figure out that the check is a fake, giving the scammer plenty of time to get their hands on the money.

If you deposit a fake check, your bank may withdraw the full amount from your account, leaving you with nothing.

You'll lose all the money you sent to the scammer, and it's unlikely you'll get it back.

Your bank might close or freeze your account if they suspect suspicious activity.

You may have to pay overdraft or late fees if you spend the funds and then the amount is debited.

Missing a bill can have serious consequences on your credit score, and banks may refuse service to you if you have a history of depositing fake checks.

You could face criminal penalties, including a misdemeanor or even a felony charge, depending on the state laws.

Here are the potential consequences of depositing a fake check:

To avoid falling victim to a fake bank check scam, never use money from a check to send gift cards, wire money, or buy cryptocurrency. Many scammers demand that you do these things, and once you do, it's like giving them cash.

Here are some warning signs to watch out for:

Don't accept a check for more than the selling price when selling items online, and never accept a check as payment for an item you're selling online.

Car wrap adverts can be a tempting way to make some extra cash, but be cautious of scams. Scammers send emails or place ads on job boards with messages like "GET PAID TO DRIVE", offering to pay you a few hundred dollars per week to drive around with a product advertisement wrapped to your car.

To get the decal installed, the scammers send you a check and tell you to deposit it and send the money to the supposed installers. This is a clear red flag, as no legitimate employer will ask you to pay anyone.

Legitimate car wrap companies pay people to put ads on their cars, but they never send people checks. They pay the installers directly. If you see a car wrap opportunity, research the company offering it and confirm that they're a real company.

To avoid falling for a scam, contact the company directly through their website rather than through the job posting. This way, you can verify the authenticity of the offer.

If you receive a check for more than the agreed-upon amount, it's a scam. Don't accept it.

Never use money from a check to send gift cards, money orders, cryptocurrency, or to wire money to anyone who asks you to. This is a common tactic used by scammers.

If someone asks you to pay for a prize, it's a scam. Legitimate prizes are free, and you shouldn't have to pay to collect them.

Wait until a check officially clears before you send money, typically in 1-2 weeks. This is a crucial step in protecting yourself from fake check scams.

Don't send a payee or third party money from a check - especially via wire transfer, gift card, or similar. This is a common way for scammers to get their hands on your money.

Here are some warning signs of a fake check scam:

Never accept a check when selling an item online. Marketplaces like Craigslist specifically warn against accepting cashier's checks, certified checks, or money orders for items.

If someone offers to send you a check as payment, end the transaction immediately and report the user. If you've received a personal check that's more than the amount you were expecting, do not deposit it.