How to Avoid Check Scams
Con artists use fraudulent checks and fake offers of prize winnings to prey on unsuspecting consumers. Educating yourself about the common types of scams, such as foreign lotteries and payments for "free" gifts, can help you avoid check scams. Every time you accept a check payment, err on the side of caution and examine it for possible signs of fraud. Savvy consumers should also examine their own personal checks for indications of check theft. If you think you might have been a victim of check fraud, contact your bank and the Federal Trade Commission immediately.
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Instructions
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1
Examine every check you receive for indications of fraud. Fraudulent checks might lack perforations, have a missing or low check number, lack the address of the bank and customer or contain areas of discoloration. Fraudulent checks can also have additional information written by hand, such as a phone number. The numbers on the bottom of the check might appear shiny. Examine each check for incomplete information, such as a missing authorization signature.
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Examine every new box of checks you receive. Look for missing check numbers that might indicate someone removed a check. Call your bank immediately if you notice any missing checks.
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3
Avoid mailing check payments from your mailbox. Always use a secured postal box.
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Refuse to accept a check payment for more than the correct amount. A common check scam is to request that the victim deposit the check and then withdraw the extra amount.
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Avoid entering foreign lotteries because many of them are scams. Likewise, never pay for a free prize or gift.
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Request a check drawn on a bank that has a local branch. Call or visit the bank to ensure the check is valid. Call the bank with a number from the phone book or the bank's website. Do not call the number listed on the check because it might be fake.
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Use a reputable online payment system or an escrow service to buy or sell items online. Avoid using checks.
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Tips & Warnings
Keep your deposit slips, bank statements and checks, including canceled checks, in a secure location.
Reconcile your bank statements within 30 days. You might be liable for losses if you report discrepancies later than that.
Write your checks with a gel ink pen instead of a pen with a dry based ink. This makes it more difficult for a person to "wash" the check and change the information.
If you think you've been a victim of check fraud, contact the Federal Trade Commission at 877-382-4357, regardless of whether the fraud was successful. (reference 1)
Never include your phone number, driver's license number or Social Security number on your check. Criminals can steal your identity with this information.
