Protect Yourself from Check Scams: What You Need to Know

Despite the rise of digital payments, paper checks—including personal checks, cashier’s checks, and official bank checks—are still widely used across the United States. Unfortunately, this opens the door to check scams, where criminals exploit physical and electronic check transactions to commit fraud and steal funds. Whether you’re writing a check, depositing one, or receiving a check as payment, it’s essential to understand the risks and how to protect your financial security.

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Common Types of Check Fraud and Check Scams

Check fraud takes many forms, and scam victims often don’t realize they’ve been targeted until it’s too late. Here are some of the most common scams and forms of check fraud:

• Counterfeit Check Scams
  Fraudsters create counterfeit checks using legitimate account information. These fake checks may appear authentic, with realistic-looking check numbers and security features, but they’re designed to deceive. Scams may involve a fake cashier’s check or official check that seems legitimate but is worthless.
• Forgery and Check Alteration
  Check alteration involves using chemicals or tools to change details on a check, such as the payee or the amount. Also known as check washing, this scam can turn a valid payment into a fraudulent transaction.
• Check Kiting
  In a check kiting scheme, the scammer takes advantage of the float time between banks by depositing a check from an account with insufficient funds, then withdrawing money before the check clears.
• Paper Hanging
  This form of check fraud involves knowingly writing a bad check from a closed or empty account with no intention of making good on the payment.
• Theft and Unauthorized Use
  Criminals steal physical checks from outgoing mail, home mailboxes, or businesses, then forge signatures or use the account information for fraudulent activity.

Fake Check Scams: Spot the Red Flags

A fake check scam often starts with an unexpected payment, such as:

• A mystery shopper job or a secret shopper assignment
• A personal assistant or a part-time job opportunity found online
• A payment for items sold online where the buyer “accidentally” overpays
• A supposed government grant, a Foreign lottery win, or escrow services

These scams typically ask victims to deposit a check for payment that appears legitimate. The scammer then instructs the victim to wire a portion of the excess funds using services like Western Union, a money transfer business, or through gift cards. Once the fraudulent check bounces, the victim is responsible for the entire amount.

Signs of an Unusual Check

• The amounts on the checks are higher than expected
• The check recipients are asked to return part of the money
• The check comes with instructions to wire money or buy gift cards
• You’re asked to send money to strangers or provide gift card PINs
• The sender is an unknown party or an unsolicited email contact

How to Protect Yourself from Check Scams

Vigilance is key to avoiding check scams and fraudulent checks. Follow these tips to protect your accounts and stay ahead of scammers:

1. Secure Your Paper Checks
Keep your personal checks and business checks in a secure location. Avoid carrying your checkbook unless needed, and never leave checks in your vehicle or unlocked desk drawers. Criminals target vulnerable spots for check theft.

2. Don’t Use Unlocked Mailboxes
Place outgoing mail directly into a U.S. Postal Service drop box or hand it to a postal clerk. Mail theft is a common way scammers obtain checks to alter or counterfeit.

3. Verify the Source of the Check
Before depositing any official bank checks or cashier’s checks, verify them with the issuing bank using contact information from the bank’s website, not the number printed on the check. You can also search for FDIC-insured banks using BankFind.

4. Be Skeptical of Unexpected Payments
If someone you don’t know offers to send you money, especially if they request a return of additional money, it’s likely a scam. Think twice before accepting payments from strangers or unknown callers.

5. Use Digital Banking Tools
Sign up for account alerts and check images online and through mobile banking to track check activity in real time. Alerts notify you of any unusual checks or unauthorized payments.

6. Use Payee Positive Pay for Business
For business owners, Payee Positive Pay is a fraud detection tool that helps verify checks before they’re cleared. When a check is presented, it’s matched against information you’ve uploaded, such as check number, payee, and amount. If there’s a mismatch, the bank will contact you to approve or reject the transaction.

What to Do if You’re a Victim of a Check Scam

If you believe you’ve been targeted by a counterfeit check scam or detect fraudulent activity, act fast:

• Report it to Banesco USA immediately.
• Contact the Federal Trade Commission via the FTC Complaint Assistant.
• Reach out to the U.S. Postal Inspection Service at www.uspis.gov if the check arrived by mail.
• File a complaint with the Internet Crime Complaint Center (IC3).
• Alert your state attorney general or local consumer protection agency using the NAAG directory.

Contact Banesco USA

Think you’ve been targeted by a check scam or noticed unusual account activity?
Don’t wait—take action to secure your finances and report the issue right away.
To speak with a Banesco USA Client Care Specialist, call:

• USA: 1-888-228-1597
• Venezuela: 0-800-122-8226

Hours: Monday through Friday, 8:30 AM – 5:00 PM ET