What Is Check Fraud? How to Protect Yourself
Check fraud happens when someone steals, alters, forges, or misuses a check to access money or banking information. While check fraud has traditionally involved paper checks, scammers are now using digital methods, mobile deposits, email, and messaging apps, too.
Knowing what to look for can help you protect your money and spot a scam before it becomes a bigger problem.
What Are Common Types of Check Fraud?
Check fraud can take several forms, including:
- Stolen checks: A check is taken from your mailbox or another location and used without your permission.
- Altered checks: Information on a legitimate check, such as the payee or amount, is changed.
- Forged checks: A scammer creates a fake check or forges a signature.
- Fake checks: A scammer sends a counterfeit check as part of a job, prize, purchase, or other scam.
- Digital check scams: Fake checks may be sent through email or messaging apps and deposited using mobile banking.
Who Is Most at Risk?
Anyone can become a victim of check fraud, but scammers often target:
- Renters who pay by check
- Small business owners
- Families managing shared finances
- Older adults
- Young adults targeted by job scams
For example, a scammer may offer a fake job and send you a check, asking you to deposit it and send some of the money back. The check may appear to be deposited successfully, but it can later be identified as fraudulent.
How Can You Protect Yourself From Check Fraud?
A few simple habits can help reduce your risk:
Mail checks securely. Take outgoing checks inside the post office instead of leaving them in an outdoor mailbox overnight.
Use gel ink. Gel ink can make it more difficult for scammers to remove or alter information on a check.
Avoid blank spaces. When writing a check, fill in the available spaces around the payee and amount to make alterations more difficult.
Monitor your account. Regularly review your transactions and check for anything you don’t recognize.
Set up account alerts. Alerts can help you notice unusual transactions or activity sooner.
Be cautious with unexpected checks. If you receive a check you weren’t expecting, especially through email or a messaging app, verify it before depositing or using the funds.
Don’t rush to send money back. Never send money to someone simply because a check appears in your account or shows as a pending deposit.
Check Fraud Can Happen Digitally, Too
Check fraud isn’t limited to paper checks anymore. Scammers may send fake checks electronically and ask you to deposit them through your mobile banking app.
A common scam looks like this: You receive a check, deposit it, and are asked to quickly send part of the money back. Even if the deposit appears in your account, that doesn’t always mean the check is legitimate or that the funds are final.
When something feels unusual or you’re being pressured to act quickly, stop and verify the situation before sending or spending the money.
What Should You Do If Something Looks Wrong?
If you notice an unfamiliar check, suspicious transaction, or possible fraud, contact your financial institution immediately.
Don’t wait to see what happens. Save any related emails, texts, checks, or transaction information and follow your financial institution’s instructions for reporting the issue.
Protect Your Money by Staying Alert
Check fraud can happen to anyone, but knowing the warning signs can help you protect yourself. Monitor your accounts, be cautious with unexpected checks, and never let someone pressure you into sending money quickly.
When in doubt, stop and contact your financial institution before taking action.
