How to Detect Fraudulent Checks

Fraudulent checks can cost you a lot of money. When someone gives you a check and you cash it or deposit it with your bank, the bank may grant you access to the money immediately or within a day or two. While you may have access to the money, the check probably has not cleared the bank it was issued from. It could take more than a couple of days, even weeks, before a check clears the bank. When the check comes back returned because it was fraudulent, the bank will look to you to get the money back. So, it is important that you know how to detect fraudulent checks. Fraudulent checks are often hard to detect even by banks, so it is important to know what to look for.

Things You'll Need

• Telephone
• Printer
• Copier
• Computer with Internet service

Instructions

1. Look for the check number. There should be a check number on the check. If not, you should be wary of accepting the check. Also, look to see if the check number is low. Oftentimes, on a personal account, this would mean numbers such as 101, and on a business account it might be 1001. Almost 90% of fraudulent checks are written out of accounts that are less than one year old (Reference 1).

2. Notice if there are any stains or discolorations on the check. Any marks such as these could indicate that the check writer was trying to cover up something or alter something.

3. Make sure that the coding on the bottom of the check matches the check number. After the routing and account number on the check, the check number should be listed.

4. Notice if the font on the check looks the same. If the font of the payee makes it appear that it was written by a typewriter, it could be a fraudulent check. Most checks are printed by a computer and the font will be the same on the entire check.

5. Check for perforations on the check. Most checks except for government checks, counter checks and temporary checks will be torn from a check stub, which will leave perforations.

Tips & Warnings

• Never accept a check from someone you do not know. This will help reduce you acceptance of fraudulent checks.

• If the check is drawn on a local bank, call or visit the bank with the check to ensure that it is legitimate.

• Get a copy of the driver's license and a phone number for each person you accept a check from.

• Report fraudulent checks to the National Fraud Information Center by visiting www.fraud.org or by calling [phone].

References

• Check Investigative Services

Resources

• Fake Check Scams