A Check Isn't Always What It Seems
A check can look legitimate and the money can appear in your account, but that doesn't necessarily mean the payment is good. Fake check scams are designed to make fraudulent funds look real long enough for you to send your own money.
Receiving a check can feel reassuring. Maybe someone is paying you for an item you sold, sending you a refund, or offering you a job.
You deposit the check, see the money appear in your account, and assume the payment is complete.
Unfortunately, that's not always the case.
Fake check scams can make it appear that you've received legitimate funds when the check is actually fraudulent. By the time the problem is discovered, you may have already sent some of the money to someone else—leaving you responsible for the difference.
The FTC cautions that seeing check funds in your account does not mean the check is good. A fraudulent check may be discovered and returned later.
The CFPB identifies urgency, impersonation, requests for sensitive information, and unusual payment methods as common scam warning signs.
How Fake Check Scams Work
A fake check scam often begins with someone asking you to deposit a check and then do something with the money.
The story can take many forms. You might be selling something online, responding to a job advertisement, receiving an unexpected payment, or communicating with someone who claims they need your help.
Often, the check is for more money than you're expecting. The sender then asks you to return the difference or use part of the money for another purpose.
For example, imagine you're selling an item for $500. The buyer sends you a check for $1,500 and says they accidentally overpaid. They ask you to send the extra $1,000 back.
The check may initially appear to clear, but it can later be determined to be fraudulent. If you've already sent the $1,000, you may be left responsible for that money.
Remember: Available Doesn't Mean Valid
Funds may appear in your account before a check has been fully verified. If the check is later returned as fraudulent, those funds can be removed from your account.
Why the Money Can Appear So Quickly
This is one of the most confusing parts of a fake check scam.
After you deposit a check, some or all of the funds may become available for you to use before the check has gone through the entire verification and collection process.
Seeing a balance increase can make it seem like the payment is complete. But the appearance of available funds isn't proof that the check is legitimate.
If the check is later returned, the amount can be taken back from your account. If you've already sent that money to someone else, you may still be responsible for the difference.
Watch for Overpayment Requests
One of the clearest warning signs is someone sending you more money than you are owed and asking you to return part of it.
The explanation may sound reasonable. They might say they made a mistake, their accounting department sent the wrong amount, or they need you to forward money to another person.
Don't let a convincing explanation or pressure to act quickly make the decision for you.
If you receive a check for more than expected, stop before sending any money back or spending the difference. Verify the situation independently first.
A Check Can Look Completely Real
Fraudulent checks aren't always easy to spot.
They may include legitimate-looking business names, logos, signatures, addresses, and other details. Some may even appear to come from a real company or financial institution.
Scammers can use information from legitimate organizations to make fraudulent checks appear convincing.
That's why the appearance of a check alone isn't enough to determine whether it's legitimate.
Fake Job Offers Can Use the Same Trick
Fake check scams can also target people looking for work.
A scammer may advertise a work-from-home position or another job opportunity. After you're "hired," they send you a check and instruct you to deposit it.
You may then be told to use some of the money to purchase equipment, pay a vendor, or send funds to another person.
The job may never have existed, and the check may eventually be returned as fraudulent.
Be especially cautious of employers who ask you to deposit a check and then send money elsewhere on their behalf.
What Should You Do With a Suspicious Check?
If you receive an unexpected check or something about the payment doesn't feel right, don't rush to spend or transfer the money.
- Don't send money back simply because the sender says they overpaid.
- Don't spend funds simply because they appear in your available balance.
- Don't follow instructions to send money to another person or account.
- Don't rely on a screenshot, email, or message as proof that a payment is legitimate.
- Contact Prime Financial Credit Union if you're unsure about a check or payment.
Taking a little extra time to verify a payment is much safer than trying to recover money after it has been sent.
Prime Financial Is Here to Help
At Prime Financial Credit Union, we're committed to helping our members recognize fraud and protect their finances.
If you receive a suspicious check or aren't sure whether a payment is legitimate, contact us before spending or transferring the funds.
When something doesn't feel right, it's always better to pause and ask.
The Bottom Line
A check can look legitimate and funds can appear in your account without the payment actually being valid. Be especially cautious when someone sends you more than expected, asks you to return money, or tells you to deposit a check and send funds somewhere else.
Not Sure If a Check Is Legitimate?
Before spending, returning, or transferring money from an unexpected check, contact Prime Financial Credit Union. It's always safer to verify first than to act under pressure.