What to Do If You Receive a Counterfeit Check

What to Do If You Receive a Counterfeit Check

Quick answer

• Do not attempt to cash or deposit the check.
• Contact the financial institution the check appears to be drawn on.
• Report the incident to the U.S. Secret Service or local law enforcement.
• Keep all documentation related to the check and the transaction.
• Be aware that you may be held liable for funds withdrawn on a counterfeit check.
• Monitor your bank account for any suspicious activity.

Who this is for

• Individuals who have received a check they suspect is fake.
• People who have already attempted to cash or deposit a counterfeit check.
• Anyone who has been offered a job or service that requires cashing an unsolicited check.

What to check first (before you act)

The Check Itself

Examine the check for common signs of counterfeiting. Look for:

• Paper Quality: Genuine checks are printed on special paper with security features, like watermarks or microprinting, that are difficult to replicate. Counterfeit checks may feel flimsy or have blurry printing.
• Ink: The ink on a real check should be crisp and consistent. Look for smudged or uneven ink, or colors that seem off.
• Account and Routing Numbers: Verify that the account and routing numbers are in the correct format and appear to be valid. Sometimes, counterfeiters use incorrect or non-existent numbers.
• Payee and Amount: Ensure the payee’s name and the amount written on the check are accurate and consistent.
• Bank Logo and Address: Compare the bank’s logo and address to official information. Counterfeiters may use outdated or incorrect details.

The Sender or Source

Investigate who sent you the check and why.

• Unsolicited Payments: If the check arrived unexpectedly, especially if you haven’t done business with the sender, be extremely cautious.
• “Overpayment” Scams: A common tactic involves sending a check for more than the agreed-upon amount, asking you to wire back the difference, and then the original check bounces.
• Job Offers or Sweepstakes: Be wary of offers that seem too good to be true, especially if they require you to cash a check first.

Your Financial Institution

If you’ve already deposited or attempted to cash the check, understand your bank’s procedures.

• Hold Periods: Banks often place holds on checks, especially large or unusual ones. This gives them time to verify the funds.
• Notification: Your bank will notify you if the check is returned as counterfeit or for insufficient funds.

Step-by-step (simple workflow)

1. Do NOT cash or deposit the check: This is the most crucial first step.

• What “good” looks like: You have secured the check and have not taken any action to deposit or cash it.
• Common mistake and how to avoid it: Depositing the check immediately out of excitement or need. Avoid this by pausing and carefully examining the check and the circumstances.

2. Examine the check closely: Look for all the signs of a counterfeit mentioned in the “What to check first” section.

• What “good” looks like: You’ve identified several potential red flags on the check.
• Common mistake and how to avoid it: Trusting the check’s appearance without scrutiny. Avoid this by assuming it might be fake until proven otherwise.

3. Identify the issuing bank: Locate the name and address of the bank printed on the check.

• What “good” looks like: You have the correct bank name and can find its official contact information.
• Common mistake and how to avoid it: Using contact information found on the check itself, which could also be fake. Avoid this by searching for the bank’s official website or a reputable directory.

4. Contact the issuing bank: Call the bank directly using a number found through an independent search, not one on the check.

• What “good” looks like: You’ve spoken to a bank representative who can verify if the check is legitimate.
• Common mistake and how to avoid it: Calling a fraudulent phone number provided on the fake check. Avoid this by always using official contact information.

5. Report to law enforcement: If the check is confirmed as counterfeit, contact your local police department or the U.S. Secret Service.

• What “good” looks like: You have filed a report and have a case number.
• Common mistake and how to avoid it: Believing it’s not worth reporting small amounts. Avoid this by understanding that counterfeit operations often target many people, and reporting helps investigations.

6. Preserve all evidence: Keep the original check, any envelopes, correspondence, or other documents related to the transaction.

• What “good” looks like: You have a secure place where all related documents are stored.
• Common mistake and how to avoid it: Discarding the check or related materials, thinking they are useless. Avoid this by treating all items as potential evidence.

7. Notify your bank (if you deposited it): If you already deposited the check, inform your bank immediately about the situation.

• What “good” looks like: Your bank is aware and can take steps to protect your account.
• Common mistake and how to avoid it: Waiting for the bank to discover the issue. Avoid this by proactively informing them.

8. Monitor your accounts: Keep a close eye on your bank statements and credit reports for any unauthorized activity.

• What “good” looks like: You are regularly checking your financial statements.
• Common mistake and how to avoid it: Neglecting to check your accounts after the incident. Avoid this by setting up alerts and scheduling regular reviews.

9. Be cautious of follow-up scams: Scammers might try to contact you again, claiming they can help resolve the issue or asking for more money.

• What “good” looks like: You are skeptical of any further contact and do not provide personal information or money.
• Common mistake and how to avoid it: Falling for a secondary scam. Avoid this by remembering that legitimate authorities will not ask for payment to resolve a counterfeit check issue.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Cashing or depositing the counterfeit check	You can be held liable for the full amount of the check, and your bank account may be debited. You could also face criminal charges.	Do not attempt to cash or deposit it. Report it immediately.
Believing the sender’s story	You may be tricked into sending money or personal information to the scammer, leading to financial loss and identity theft.	Be skeptical of unsolicited checks and “too good to be true” offers. Verify everything independently.
Discarding the evidence	Law enforcement may have less to work with, potentially hindering the investigation and your ability to prove your innocence.	Keep the original check, envelopes, and all related correspondence.
Not reporting the incident	The counterfeiters continue their operation, potentially victimizing others. You may also face repercussions from your bank.	Report the incident to the issuing bank, your bank, and law enforcement (local police or U.S. Secret Service).
Providing personal information	Your identity could be stolen, leading to fraudulent accounts, loans, or other financial crimes in your name.	Never give out sensitive personal or financial information to unsolicited contacts.
Wiring money back to the sender	You will lose the money you wired, and the original check will still be returned as fraudulent, leaving you responsible for any overdraft.	Never send money to someone who sent you a check, especially if they ask you to return a portion of it.
Assuming your bank will cover losses	While banks may have policies to protect customers, you could still be held liable for funds withdrawn on a counterfeit check, especially if negligence is proven.	Proactively inform your bank and cooperate fully with their investigation.
Waiting too long to act	The longer you wait, the harder it is to gather evidence, and the more damage scammers can do if they have your information.	Act immediately upon suspecting a check is counterfeit.
Trusting a “cashier’s check” or “money order”	These can also be counterfeited. The same rules apply as with personal checks.	Treat all forms of payment with suspicion if the circumstances are unusual or too good to be true. Verify with the issuing institution.

Decision rules (simple if/then)

• If a check arrives unexpectedly and for an amount you weren’t expecting, then do not cash or deposit it because it’s a common scam tactic.
• If the check’s paper quality feels unusual or the printing is blurry, then it might be counterfeit because legitimate checks have security features.
• If the sender asks you to wire money back or pay for something before the check clears, then it’s a scam because they are trying to get your money before the fraudulent check is discovered.
• If you receive a check from a job offer that requires you to cash it first, then be very suspicious because legitimate employers do not operate this way.
• If the bank listed on the check is unfamiliar or its details seem off, then try to find the bank’s official contact information independently to verify the check’s authenticity.
• If you have already deposited the check and your bank places a hold on it, then be patient and wait for the bank’s verification, as this is standard procedure for potentially fraudulent items.
• If you suspect a check is counterfeit, then contact the issuing bank directly using official contact information, not information from the check itself, to avoid fraudulent numbers.
• If the check is confirmed to be counterfeit, then report it to law enforcement and your bank because this helps prevent future fraud and protects you from liability.
• If you have lost money due to a counterfeit check, then consult with your bank about their dispute resolution process and consumer protection options.
• If you are asked to pay a fee to “clear” a check, then it is a scam because legitimate checks do not require upfront payment to be cashed.
• If the check is for a prize or sweepstakes you didn’t enter, then it’s likely a scam because you generally have to enter to win.

FAQ

What happens if I cash a counterfeit check?

If you cash a counterfeit check, your bank will eventually discover it’s fake. You will be held responsible for the full amount of the check, and your account may be debited. In some cases, you could face criminal charges if it’s determined you were complicit.

Can my bank help me if I received a counterfeit check?

Your bank can help by advising you on the best course of action and potentially investigating the matter. However, they are not obligated to cover losses if it’s determined you were negligent or knowingly involved in cashing a fake check.

What is the difference between a counterfeit check and a bounced check?

A counterfeit check is a fake document created to look like a real check. A bounced check is a real check that cannot be cashed because the issuer does not have sufficient funds in their account to cover it.

How do I know if a check is counterfeit?

Look for poor paper quality, blurry printing, incorrect or missing security features (like watermarks), and inconsistencies in the bank’s logo or routing numbers. Always verify with the issuing bank.

Should I try to verify the check with the sender?

No, if you suspect a check is counterfeit, do not rely on the sender for verification. They are likely the scammer. Always use independent, official contact information for the bank.

What is the U.S. Secret Service’s role in counterfeit checks?

The U.S. Secret Service is a federal law enforcement agency responsible for investigating financial crimes, including counterfeiting of U.S. currency and, importantly, financial instruments like checks. They work with local law enforcement on these cases.

Will I get my money back if I deposit a counterfeit check?

It’s unlikely you will recover the money directly if you deposit a counterfeit check and are held liable. Your primary recourse is to report the fraud to law enforcement and hope for a successful investigation and prosecution, which may or may not lead to restitution.

What this page does NOT cover (and where to go next)

• Specific legal recourse available to victims of check fraud beyond reporting.
• How to start your own business that legitimately handles check processing.
• Advanced methods for detecting sophisticated check forgery.
• The process of recovering funds from a scammer if they are identified.
• Identity theft protection services and how to use them.