Defend Yourself Against Fake Check Scams

October 16, 2023

by Christian Phillips

What are counterfeit checks?
Fake “counterfeit” checks are created to cover the costs of products and services with illegitimate funds.

Overpayment scams:
A scammer will purchase an item online (third-party transaction) and send a check for more than the asking price. The overpayment will be brought to the seller’s attention, and the scammer will request a refund for the overpaid balance.

Fake job scams:
Scammers often lure unsuspecting victims with fake job advertisements. They send checks to the supposed employee, along with detailed instructions. These instructions usually ask the recipient to deposit the check and use the funds to purchase gift cards. Once the card information is provided to the alleged employer, they will disappear, leaving the victim with no way to contact them. Later, the deposited check will be revealed to be fraudulent. Depending on the situation, the victim may be held responsible for the missing funds.

Lottery/Prize scams:
Consumers will receive checks in the mail that can state the following: “Congratulations! You have won our $250,000 sweepstakes. Contact our agent to collect your winnings...”
The check will direct the consumer to deposit it within a specific timeframe before it expires. The urgent calls to action are implemented to get the consumer to act out of impulse. Take some time to verify the check's legitimacy. These scams are well-planned, and scammers will either steal or design checks that are difficult to identify irregularities.
Report lottery and prize-winning scams to the Federal Trade Commission at ReportFraud.ftc.gov.

How to Identify Counterfeit Checks:
Step 1: Inspect the check.
Does the check have any of the following?

Bank address
Missing signature
Missing bank logo
Missing watermarks
Missing padlock icon
Misspelled words

If the following is accurate, do not deposit the check and report the issue to your local police department.

Step two: Personal details
Does the payee, business, or personal address look familiar? Uncertainties can be resolved by conducting an internet search to help reveal unidentified concerns. Consumers can also use the Better Business Bureau and search for the company name and location via their website.

Step 3: Are you expecting a check in the mail?
The chances of someone receiving lottery or prize sweepstakes through the mail are improbable. Scammers want you to act out of impulse. Take a moment and think about the situation because, often enough, consumers will realize the harmful intent. Do not accept checks from unsolicited and unknown sources.

Step 4: Unusual requests
Did the check include a letter that requested repayment via money transfer apps, wire transfers, prepaid cards, or money orders? Legitimate lottery, prize-winning, or jobs will not ask this.

Additional reporting:
As previously stated, report lottery, prize-winning, and other fake check scams to the Federal Trade Commission at ReportFraud.ftc.gov. Consumers should also report the incidents to the following sources:

Your local police department.
The bank you conduct business at.
U.S. Postal Inspection Service.

Defend Yourself Against Fake Check Scams

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