Check Fraud: Why the Bank Wants the Money Back
A fake check can leave your own bank asking you to repay it. Here is why it happens and what to do now.
How fake check scams work
Check fraud is a scam that uses a fake check to trick you into depositing it and sending money before the bank catches on. The goal is to get you to deposit the check and then send money somewhere before the bank catches on.
Why the scam works
The FTC says if you deposit a fake check, it can take the bank weeks to figure out it is fake.
Common check fraud scams
Two versions of this scam are the overpayment scam and the mystery shopping scam.
Overpayment. The FTC says scammers may overpay you with a check for something you sell online and ask you to wire back the extra money. The FTC says a bank may take weeks to discover a bad check, and will then want you to repay the money you withdrew.
Mystery shopping. The FTC says scammers may claim a check is part of a mystery shopping assignment to evaluate a wire transfer service. For more on how these transfers work, read about wire fraud.
What happens after you deposit a fake check
The FTC says once the bank finds out the check is fake, they will want you to pay back the funds.
If money left your account without approval
If someone took funds out of your checking account without your permission, that is a different problem. The CFPB says you can find out how to get your money back if someone took funds out of your checking account without approval.
How to prevent check fraud
- Be suspicious of any overpayment.
- Never wire money back to someone who just paid you by check.
- Wait before spending money from a check from a stranger.
Related fraud to read next
To see the broader picture, read about bank fraud. For scams that use your cards instead of your checks, see credit card fraud and learn how to prevent credit card fraud.