We may live in a world of contactless credit cards andmobile payment apps, but old-fashioned paper checks are far from extinct. That continuing reliance on paper creates an opportunity for scammers to try to steal your money through a variety of fake check scams. The approaches differ, but these cons have the same basic kicker: The crooks want to get you to deposit a counterfeit check in your bank account, then return a portion of the supposed funds to them. One common ruse is the overpayment scam. You put something up for sale in a newspaper classified ad or online post. Someone makes an offer and sends you a check — perhaps even a cashier’s check, which seems extra-safe. The check turns out to be for considerably more than what you charged for the item. The “buyer” will pretend it’s a mistake and ask you to deposit the check and refund them the difference. That’s a scam. Crooks exploit the fact that banks must make funds from a check deposit available to the account holder within days but can take far longer to discover that the check is phony — sometime weeks, according to the Federal Trade Commission (FTC). When the check does bounce, you’re out whatever you sent the scammer, plus any other funds from the fake check that you’ve withdrawn or used. Banks do not assume those losses. Con artists run numerous variations on this scheme. In each case, the check bounces and you’re out what you’ve paid. And that can be quite a bit: The Better Business Bureau reported a median loss of $1,475 from complaints of fake check or money order scams it logged in 2021, making them the second-costliest con among those the organization tracks. These scams remain popular with fraudsters because they’re easy to pull off. With the help of a scanner and a good printer, a crook can fabricate a bogus check — even a bank draft, certified check or cashier’s check — that’s hard to distinguish from the real thing (see "6 Ways to Spot a Fake Check," below). Some phony checks even contain authentic-looking watermarks, according to the FTC. With advances in scanning and printing, scammers can produce counterfeit checks that get alarmingly close to the real thing. But there are still several physical clues that can help you discern when you’ve been passed some bad paper. If you’re unsure of a check’s provenance, follow these tips fromEPCOR, a nonprofit association that works to improve payment systems for more than 2,000 member banks, credit unions and other financial institutions in 12 states. 1. Feel the edges Legitimate checks willusuallyhave at least one rough or perforated edge. One sure-fire way of spotting a fake is to examine its edges. If all four sides are smooth, it waslikelynot issued by a financial institution. 2. Look at the logo A hallmark of any legitimate check is the logo of the bank where the account is held. If there’s no logo, it’s probably not a real check. If there is a logo but it’s faint or faded, that’s a sign that it’s been copied from another source. 3. Verify the bank address Even if the logo looks legit, check the website of the named bank, or call its customer-service number, to make sure the address written on the check is correct. If the address is absent or includes a P.O. Box, don’t cash the check. 4. Check the check number Every legitimate check contains a number that appears in two places: in the upper-right corner and in the magnetic ink character recognition (MICR) line at the bottom. If the numbersdon’t match, it’s a bogus check. And be wary of low numbers, such as 101-400 on a personal check or 1,000-1,500 on a business check. This signals a new account, and 90 percent of fake checks are written from new accounts, EPCOR warns. 5. Rub the MICR line Rub your finger over the line at the bottom of the check and look closely at its quality. The special ink used for the MICR line prints out smoothly. Any indication of raised or shiny numbering means the check is fake. 6. Examine the paper Authentic checks are printed on thick, coated paper stock with a matte finish. If a check feels thin and flimsy when you bend it, or looks shiny, it’s probably phony. Another test is to run a damp finger across inked areas on the paper. If the ink smears, the check is fraudulent.
6 Ways to Spot a Fake Check
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