Fake Check Scams

1. Feel the edges

Legitimate checks will usually have 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 was likely not 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 numbers don’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.

Warning Signs

• A prospective buyer of something you put up for sale sends you a check for more than the asking price.
• You get a check in the mail with lottery winnings you can only claim by wiring back some of the money. No legitimate sweepstakes or lottery requires payment to play or collect a prize.
  
• A grant, scholarship or job requires you to send back a fee out of your first payment.
  

How to protect yourself from this scam

• Do suggest that a buyer who wants to pay you for an item or service by check use a safer alternative — for example, an online peer-to-peer service like PayPal.
  
• Do ask for checks to be drawn on local banks or banks with local branches. That way, you can visit the bank to make sure the check is legit. If you do accept a check from an out-of-town bank, call it before you deposit the check to verify that the check is genuine.
• Do examine checks carefully for irregularities like those listed in the box above.
• Do back out of a sale if the buyer pressures you to wire back funds.
  
• Do wait at least two weeks after you deposit a check from an unfamiliar source before you withdraw or spend money from it.
  

• Don’t accept a check that’s made out for more than the price of the item or service you’re selling. Insist that the buyer make out a new one for the correct amount.
• Don’t rely on a phone number for a bank that a seller prints on a check. If you want to call to authenticate the payment, look up the bank’s number on its official website.
• Don’t wire money to people you don’t know.
• Don’t give in to pressure to move fast on a payment to secure a job or supposed financial windfall. If a deal is legitimate, it will still be available after the check clears.
  

More Resources

• Report fake check scams to the FTC, by calling 877-382-4357 or filing an online complaint.
• Since fraudulent checks usually come through the mail, you can also report them to the U.S. Postal Inspection Service.
  
• Contact your state’s attorney general and consumer protection agency.