In a fake check scam, a person you don’t know asks you to deposit a check— sometimes for several thousand dollars, and usually for more than you are owed — and send some of the money to another person. The scammers always have a good story to explain why you can’t keep all the money. They might say they need you to cover taxes or fees, you’ll need to buy supplies, or something else.
- How To Cash A Personal Check
- How To Cash A Check In Real Money Fast
- How To Cash In A Check Online
- How To Cash Check Online
- Can I Cash A Check Anywhere
- Need To Cash A Check
Buy a money order. Transform your cash into an easy-to-deposit check by buying a money order at a local retailer or a post office, then make it payable to yourself. If your online bank has an.
Fake checks come in many forms. They might look like business or personal checks, cashier’s checks, money orders, or a check delivered electronically. Here’s what you need to know about fake check scams.
Types of Fake Checks Scams
Fake checks are used in many types of scams. Here are some examples:
- Mystery shopping. Scammers pretend to hire people as mystery shoppers and tell them their first assignment is to evaluate a retailer that sells gift cards, money orders, or a money transfer service, like Western Union or MoneyGram. The shopper gets a check with instructions to deposit it in a personal bank account and wire it to someone else. But once the money is wired, the person on the other end can disappear.
- Personal assistants. People apply online and get hired as personal assistants. They get a check and are told to use the money to buy gift cards or to buy equipment or supplies for their new client. Once the scammers get the gift card PIN numbers, they use them instantly, leaving the “personal assistant” without the money when the bank figures out the check is bad.
- Car wrap decals. People interested in car wrap advertising are told to deposit checks and send money to decal installers — who don’t exist.
- Claiming prizes. Sweepstakes “winners” are given checks and told to send money to cover taxes, shipping and handling charges, or processing fees. But that’s not how legitimate sweepstakes work.
- Overpayments.People buying something from you online “accidentally” send a check for too much and ask you to refund the balance.
Why Do These Scams Work?
These scams work because fake checks generally look just like real checks, even to bank employees. They are often printed with the names and addresses of legitimate financial institutions. They may even be real checks written on bank accounts that belong to identity theft victims. It can take weeks for a bank to figure out that the check is a fake.
Fake Checks and Your Bank
By law, banks have to make deposited funds available quickly, usually within two days. When the funds are made available in your account, the bank may say the check has “cleared,” but that doesn’t mean it’s a good check. Fake checks can take weeks to be discovered and untangled. By that time, the scammer has any money you sent, and you’re stuck paying the money back to the bank.
Your best bet: Don’t rely on money from a check unless you know and trust the person you’re dealing with.
How To Avoid a Fake Check Scam
- Never use money from a check to send gift cards, money orders, or wire money to strangers or someone you just met. Many scammers demand that you send money through money transfer services like Western Union or MoneyGram, or buy gift cards and send them the PIN numbers. Once you wire money, or give someone the gift card PINs, it is like giving someone cash. It’s almost impossible to get it back.
- Toss offers that ask you to pay for a prize. If it’s free, you shouldn’t have to pay to get it.
- Don’t accept a check for more than the selling price. You can bet it’s a scam.
What To Do If You Sent Money to a Scammer
Gift cards are for gifts, not payments. Anyone who demands payment by gift card is always a scammer. If you paid a scammer with a gift card, tell the company that issued the card right away. When you contact the company, tell them the gift card was used in a scam. Ask them if they can refund your money. If you act quickly enough, the company might be able to get your money back. Also, tell the store where you bought the gift card as soon as possible.
Here is a list of gift cards that scammers often use — with information to help report a scam. If the card you used is not on this list, you might find the gift card company’s contact information on the card itself, or you might need to do some research online.
If you wired money to a scammer, call the money transfer company immediately to report the fraud and file a complaint. You can reach the complaint department of MoneyGram at 1-800-MONEYGRAM (1-800-666-3947) or Western Union at 1-800-325-6000. Ask for the money transfer to be reversed. It’s unlikely to happen, but it’s important to ask.
If you paid a scammer with a money order, contact the company that issued the money order right away to see if you can stop payment. Also, try to stop delivery of the money order: if you sent it by U.S. mail, contact the U.S. Postal Inspection Service at 877-876-2455. Otherwise, contact whatever delivery service you used as soon as possible.
Where To Report Fraud
If you think you’ve been targeted by a fake check scam, report it to:
- The Federal Trade Commission
- The U.S. Postal Inspection Service
- Your state Attorney General
Fake Check Scams Infographic
The Facts About Fake Check Scams
Q. What is a fake check scam?
A. It’s a fast-growing fraud that could cost you thousands of dollars. There are many types of fake check scams, but it all starts when someone offers a realistic-looking check or money order and asks you to send cash somewhere in return. It’s phony, and so is the person’s story, but that may take weeks to discover. Now your bank wants the money back. Turns out that just because you can get the cash doesn’t mean the check or money order is good. If it’s not, the crook will be richer and you’ll be the loser, because you’re responsible for the checks or money orders you deposit or cash. That’s how the scam works.
Q. How do the scammers find victims?
A. They scan newspaper and online advertisements looking for people listing items for sale or places to rent. They check postings on online job sites from people seeking employment and place their own ads with phone numbers or e-mail addresses for people to contact them. They meet people through social networking sites, chat rooms, and other places online. They make phone calls and send faxes, e–mails, or letters to people randomly, knowing that some will take the bait.
Q. How can I tell if a check or money order is counterfeit?
How To Cash A Personal Check
A. Know the scenario of a potential scam:
- No legitimate transaction includes overpayment or requires a refund.
- Typically, phony checks and money orders are so realistic-looking that even bank tellers can be fooled. You can get information from money order and check providers with tips to help tell if their products are real.
- The best way to avoid being a victim is to be cautious. If it seems too good to be true, it likely is. If the person approaches you and wants to complete the transaction in a hurried manner or is pressuring you to do so, reconsider the transaction altogether.
Q. Why do the scammers want cash to be sent using a money transfer service?
A. Because it’s fast — the money is often available to them within minutes. That means the victim may not be able to stop the payment before it’s received. Since the money is usually picked up in cash and in person, it may be impossible to find the crook and get it back. Some scammers are also instructing victims to send cash using a delivery service. If you suspect you’ve been scammed, immediately contact the money transfer service or delivery service you used — it may be possible to stop the crook from getting the money if it hasn’t been picked up yet.
Q. Why can’t my bank, credit union, or check cashing service tell if the check or money order is good?
A. When you deposit a check or money order, federal law requires you to have access to the funds within 1 to 5 days, but the actual processing takes longer. Banks, credit unions, and check cashing services accept checks and money orders based on your identification. They don’t have any information about the source. Because the check or money order goes back to the source, it can take a while for counterfeits to be discovered. For instance, if a check seems to come from a business account, the business may not learn about it until it appears on the next statement. You’re responsible because you’re in the best position to determine the risk of accepting the check or money order — you dealt with the person who gave it to you.
Q. What if I deposited or cashed the check or money order but haven’t sent the cash yet?
A. Immediately notify your bank or credit union, or a check cashing service if you used one. You will need to return the money or have your account corrected. Explain that you’ve been scammed and ask not to have any negative action taken against you such as closing your account or reporting you to a checking account abuse database. If that has already happened, ask if that action can be reversed. File a report with your local police to put on record that you’re a scam victim. Report the scam to the National Consumers League, which will pass the information along to law enforcement agencies.
Q. What if I have already sent the cash?
A. Immediately notify your bank or credit union, or a check cashing service if you used one. You will need to return the money or have your account corrected. Explain that you’ve been scammed and ask not to have any negative action taken against you such as closing your account or reporting you to a checking account abuse database. If that has already happened, ask if that action can be reversed. If there isn’t enough in your account to cover the loss, you could be sued to recover the funds. Try to work out a repayment plan. File a report with your local police to put on record that you’re a scam victim. Report the scam to the National Consumers League, which will pass the information along to law enforcement agencies.
Q. How much could I lose in a fake check scam?
A. According to the National Consumers League, victims lose an average of $3,000 to $4,000 — a significant amount for most people. But your losses could be even higher. If you used some of the money to pay bills or for other purposes, you’ll have to pay that amount back to your bank or credit union as well. There may also be bounced check and overdraft charges as a result of the scam. And you could lose more than money — your account could be closed and it could harm your credit rating. Some victims have even resorted to criminal acts to recoup their losses.
Q. How can I avoid becoming a victim?
How To Cash A Check In Real Money Fast
A. Think about it — there is no legitimate reason why anyone would give you a check or money order and ask you to send cash anywhere in return. Be aware that just because you can get the cash quickly — usually in 1 to 5 days — doesn’t mean the check or money order is good. Crooks take advantage of the fact that counterfeits can take weeks — even months — to discover. By then you’ve sent the money and have to pay it back to your bank. Only cash a check or money order from a person or business you know or trust. When making any business deal, do not be rushed:
Take your time to be certain you trust the person/people you are dealing with. You can be a fraud fighter by telling everyone you know — your family and friends, the people with whom you work or go to school, the people who attend your place of worship, the people you chat with online, the members of clubs or other groups to which you belong — to learn the warning signs of fake check scams and know how to prevent becoming a victim. Send them the links to the videos and quizzes on this Web site and encourage them to pass along the word.
How To Cash In A Check Online
Q. Does fakechecks.org have any special features?
A. The Alliance believes it should be easy for consumers to tell friends and family about these scams. There is an e-mail option that consumers can use to quickly send messages to people they feel might fall prey to some of the scam scenarios.
How To Cash Check Online
Q. How many U.S. Postal Service money orders are issued daily?
Can I Cash A Check Anywhere
A. In 2006, the U.S. Postal Service, one of many money order merchants, issued 166 million money orders, valued at nearly $30 billion. Postal money orders are a safe, convenient, and economical alternative to sending cash through the mail. They can be purchased from any Post Office in the United States and are available in denominations up to $1,000. Current government-issued or state-issued picture identification is required for money order purchases of $3,000 or more in a single day.