Check Fraud Prevention
Despite the decline in personal checks due to digital banking, check fraud is rising faster than ever. It’s estimated to be up 65% over the past decade. Whether you’re depositing a check from someone you know, selling an item online, or receiving payment for work, it’s important to be able to recognize the warning signs of a counterfeit check. As your trusted financial institution, we want to help keep your accounts secure. Below are some of the more common scams and tips to help you avoid becoming a victim.
How to Spot A Fake Check
Fraud artists often use counterfeit cashier's checks, money orders and other checks to trick victims into sending money. Many of these scams involve offers that arrive by mail or e-mail or that are in connection with internet sales.
1. Examine the Check Quality
Legitimate checks are printed on high-quality paper. Scam checks often feel thin or flimsy. You may also notice:
- Blurry printing
- Shiny or unusually smooth areas
- Ink that smears easily
2. Verify the Check Number
Check numbers usually appear in the upper right corner of the check and in the MICR line. MICR stands for magnetic ink character reader and is the line with the three clusters of numbers at the bottom of your check. The check number is typically the last group on this MICR line containing 3-4 numbers. Be cautious if:
- The check number doesn’t match the number in the MICR line
- The check number is missing
- The check number is low (0001-0999 can indicate new accounts scammers open and close quickly)
3. Verify the Issuing Bank
A real check will list an actual bank with a physical address. Look for:
- Incorrect spelling of the bank’s name
- Missing contact information
- Mismatched fonts or logos
If you’re unsure, you can call the issuing bank’s customer service line (not the number printed on the check) to verify.
Remember, just because a check “clears” doesn’t mean it’s real. Banks are legally required to make funds available within a few days, but counterfeit checks can take weeks to be discovered. Depending on the circumstances and your state's laws, you may be held responsible for the entire amount of the fraudulent check.
In general, be very suspicious if you’re not expecting a check or don’t know the sender. Scammers often create a false sense of urgency and pressure you to act quickly. Stop and ask yourself, "Why would someone I never met contact me for help getting money out of a foreign country?", "Why would a stranger send me a big check for no apparent reason?" When in doubt, it's usually best to walk away from the deal immediately.
Scams Often Target Older Adults
Older adults are the target for a lot of fraud. They believe this population has more money and is easier to manipulate, especially those who live alone. Education is one of the best defenses against fraud. Help protect your loved ones by reading the Top Scams Targeting Older Adults.
Check Washing
Check washing occurs when information on stolen checks is carefully erased with chemicals, often those of common household products, and then re-written, to the order of the thieves themselves and usually with higher amounts. Often, the signature of the account owner remains intact, so the forgery is more difficult to spot.
Many times, checks are stolen from mailboxes, especially outgoing payments. To help prevent this from happening to your checks, never leave bills in your mailbox to be picked up. Always drop them in a mailbox or at the Post Office yourself. If these extra errands do not sound appealing, consider electronic bill payment. Free with many of our accounts, you can make and schedule payments safely and securely from your home or office.
Even a check that looks real can be counterfeit. The safest thing you can do is bring it to your bank and ask for help. Bank employees can check details, verify the issuing bank, and help you avoid a loss. If you would like more information about check fraud and scam prevention call, contact us, or stop by one of our locations today.