Protection Against Fraudulent Check Scams

What are check scams?

Check scams may occur when a scammer issues a realistic-looking check or money order to someone and then asks for cash in return. Some common scenarios that scammers may fabricate include:

• Lottery schemes
• Overseas business offers
• Online auction overpayments
• Apartment rentals or roommates
• Dating websites or romantic chatrooms
• Work-at-home ads
• Another type of check scam includes check “whitewashing.” This is when the payee or check amount is “whited out/”changed and the funds then go to the scammer or a fake company.

Tips to help avoid check scams:

• Be cautious of any offer which sounds too good to be true
• Be cautious of any offer which requires you to purchase something, wire money, or provide account information as a prerequisite to win a prize or contest
• Do not use contact information obtained from a letter or email received to verify the legitimacy of the information provided—use an independent verification process
• Never send money back to someone who sent you a check you weren’t expecting (e.g., someone sends you a check by mistake and asks you to wire the money as they can’t wait for the check to come back – the check they are sending will of course bounce and can’t be cashed)
• If you are writing a check, use a gel pen if possible, which is harder to "wash out" the writing with, and make sure you mail your checks in legitimate postal locations only. Also, wrap your check in a piece of paper so it is not visible through the envelope. If your check is not received by the intended receipt, call your financial institution immediately to check for fraud.