Falling victim to a fake check scam can be worrisome and confusing as you try to navigate your way out of the web of crime. Keeping your account safe and proving your innocence after accidentally depositing a fake check can be difficult, but knowing how to navigate the situation is crucial to its resolution.
In this guide, we’ll explain what happens if you unknowingly deposit a fake check. We’ll walk you through the various scenarios where a fake check deposit can occur, the consequences that ensue, next steps to take, and tips for spotting fake checks.
What Is a Fake Check Deposit Scam?

A fake check deposit is a scam in which someone gives you a counterfeit check and attempts to scam you of the money the bank pays into your account. This check could be payment for a service done, a fake prize or reward, or given to you in exchange for something.
AFP reports a 15% increase in payment fraud since 2023, and check fraud is the most popular type. One of the reasons for this increase is technology—the notable advancements in the field have made it easier to produce fraudulent checks that seem real to an untrained eye.
Victims of this scam are usually left to deal with the consequences after the scammer is long gone with their money. In most cases, the banks hold the depositor responsible for refunding the money paid out.
4 Instances Where You Can Accidentally Deposit a Fake Check
Over the years, fraudsters have come up with different creative fake check deposit scams. You can get tricked into depositing a fake check when the scammer:
- Plays the “upfront salary” card—A scammer posts a fake job opportunity and then offers to pay the unsuspecting victims upfront via a fake check. The check covers “work expenses” or “job equipment.” After depositing the check, victims are asked to refund the employer a portion of the money under various excuses
- Pays with a fake cashier’s check—Fraudsters can make a payment to your account using a fake cashier’s check without you realizing it. When you deposit the check and it bounces, the bank holds you responsible and may take legal action, while the fraudster goes free
- Pretends to have overpaid you—This scam is popular in online marketplace transactions. Scammers can send you a fake check as payment for an item, and then inform you that they mistakenly overpaid you for the purchase. They then ask you to refund the difference after you’ve deposited the check
- Sends you a “prize” via check—Fraudsters mail you a check telling you you’ve won a lottery prize or sweepstakes. They ask you to pay a portion of the money you win to cover taxes or other fees. The lottery prize and the check are always fake
Overall, any check transaction in which the other party asks you to refund a portion of the money is likely a scam.
How Banks Clear Your Checks
One loophole that may make it easy for fake check scammers to get away with your money is that banks must pay within two business days of depositing a check.
Two days isn’t always enough time for the bank to verify the check’s validity, but since they must pay out the funds to ensure customer satisfaction, they deposit it in your account pending the clearing and verification process.
When you deposit a check at a bank, this is the standard procedure they take to ensure your check is legit:
Check-Clearing Process | How It Works |
Depositing the check | You deposit the check via an ATM, mobile app, or by walking into a bank |
Verifying the check | The bank reviews all the security features on the check for authenticity using different parameters |
Clearing the check | If the check passes the verification criteria, it’ll be sent to a clearing house. There, they’ll check if the payer has enough money to cover the payment |
Paying out the funds | If the check passes all the stages above, the bank will credit the amount into your account |
Notifying the payee | You’ll receive an alert informing you that the funds have been paid into your account |
It often takes days or weeks before the check gets to the verification stage, and it’s during this time that the scammer attempts to defraud the victim of the payout. This long check-clearing procedure from deposit to approval makes it easy for scammers to hightail once they’ve received the money from the victim.
The Consequences of Depositing a Fake Check Unknowingly

Just because a bank declares a check “cleared” doesn’t mean all is right with it. When the bank eventually discovers the check is fraudulent, the scammer is long gone, and you may have spent all the money, making it difficult to refund the bank.
Depositing a fake check may have various outcomes, including debt accruement, jail time, or loss of personal funds. To resolve the situation, the bank must determine who’s at fault for depositing the check.
What Happens When You Deposit a Fake Check by Accident?
These are a few consequences of depositing fake checks:
- Being asked to repay the full check amount—The laws determining the liability for repaying a fraudulent check vary across states and banks. Some banks will require you to repay the full sum deposited into your account, including processing fees
- Getting your bank account closed—This penalty depends on your bank’s specific policies on fake checks. If your bank’s policy states so, they can close your account or temporarily freeze transactions
- Having to pay late or overdraft fees—If you spend the deposited sum before the bank discovers the check, and you don’t have enough money in your account to cover the sum, you’ll pay overdraft fees. In case you miss paying bills because the bank emptied your account, you’ll pay the merchants you owe late fees
- Having your credit or banking history harmed—Checking account reporting companies may log your bad check history in your checking history data. Subsequently, banks or credit facilities may use the data to decide if you’re fit to open an account with them
- Facing legal charges—One of the potential consequences of depositing a counterfeit check is doing one to seven years of jail time. Criminal charges like theft by deception could be on your records, or you could be sued for damages caused to a third party (if any)
- Losing your personal money—If you have enough money in your savings to cover the refund, and you repay it, you may not be able to recover the money from the fraudster. AFP’s reports indicate that 30% of payment fraud victims in 2023 failed to recover their lost funds
“What Do I Do if I Deposited a Fake Check?” Your Next Steps

If you fall victim to a fake check deposit scam, protect yourself by taking the following steps:
- Report the check fraud immediately
- Freeze your checking account
- Log a complaint with relevant CPAs
- File a police report
- Keep an eye on your accounts
- Protect your cash reserves or savings
Report the Check Fraud
If you find out a check is fake before your bank does, immediately report the fraud to them. Provide evidence of the fraud, how it occurred, and any other transaction details to enhance their investigation.
In a situation where you spend the money before you realize the check is fake, try negotiating with your bank to pay the refund in installments to avoid incurring extra charges.
If you received a fake check via mail from a postal service like the USPIS, contact them. They assist victims of mail fraud in navigating the process.
Freeze Your Checking Account
Check scammers may also infiltrate your bank account if they have access to your online banking information. Ask your bank to freeze your account so that the fraudsters can’t make unauthorized withdrawals from it.
Freezing the account will also restrict the fake check from being paid into your account, so you don’t have to make any refunds to the bank.
Log a Complaint With Relevant Consumer Protection Agencies
Consumer protection agencies like the Federal Trade Commission (FTC), the FBI’s Internet Crime Complaint Center (IC3), and your state’s attorney general office, help check fraud victims.
Log a complaint with the listed offices for detailed next steps to protect your identity and funds.
File a Police Report
If the scammers successfully withdraw funds from your account using the fake check deposit, file a police report. Only a report from your local police department will qualify you for being reimbursed by the bank.
Keep an Eye on Your Accounts
Monitor your accounts for more signs of fraudulent activity and quickly report any red flags. If the scammers have access to your banking information, they may use it to withdraw money from your other bank accounts or credit cards. After falling victim to fraudulent activities, reinforcing your account security is crucial for keeping your funds safe.
Protect Your Cash Reserves or Savings
If you have savings or cash reserves in your account, move them to a more secure location during the investigation. Financial experts agree that keeping all your money in one account can be risky, especially if your account is compromised.
Swiftly transfer your funds to a more secure banking platform like FortKnox, which is designed to protect you from fraud attacks and mitigate the risks of losing all your money.
5 Tips for Spotting a Fake Check Yourself

If you receive check payments, it’s crucial that you carefully vet them before heading to the bank to deposit them. Never give in to pressure from anyone to deposit a check without first doing the following:
- Confirm that the issuer is legitimate
- Look for security hallmarks
- Scrutinize the paper quality
- Verify that the check information is consistent
- Call your bank if in doubt
Confirm That the Issuer Is Legitimate
Search for a logo on the check that can help you identify the check issuer. Visit the issuer’s website to verify that all the details on the logo are accurate and identical. You can also use the BankFind tool to check if they’re registered with the FDIC.
Look at the colors on the check—if they look faded or worn, the scammers may have reprinted the check from an original or washed a stolen check.
Look up the address on the check to see if a bank or credit union truly exists at the location. If you can’t find the address, it’s likely a fake check.
Look for Security Hallmarks
Banks use a variety of security hallmarks to prove that a check is legitimate. A few include:
- 3D holostripes—A reflective metallic stripe on the check that contains one or more holograms
- Magnetic Ink Character Recognition (MICR) line—Digital characters printed on the check’s lower portion
- Check numbers—Numbers that appear in the upper right side of the check and beneath the MICR line. Make sure the numbers match wherever they appear
Hold the check against a light to verify its authenticity. If the check is original, you should see the reflectiveness of the holostripes and other security features at an angle.
Scrutinize the Paper’s Quality
Original checks are usually printed on high-quality, thick paper with high-resolution, intricate designs that are difficult to replicate. Feel the check paper in your hands—if it feels flimsy, then something is likely wrong.
Run your hands along the sides of the check. Original checks are torn out of a checkbook, so if the check feels smooth on all sides, it may be fake.
Verify That the Check Information Is Consistent
Few fraudsters are careful enough to scrutinize checks for errors or inconsistencies before sending them out. Review the check to spot typos, grammatical errors, wrongly spelled payee information, inconsistent fonts in the design, etc.
Evidence of inconsistency on the check may indicate that it’s fraudulent.
Call the Bank if in Doubt
If you’re still not convinced that the check is authentic after taking the above steps, contact the bank to confirm your suspicions. If there’s a phone number listed on the check, ignore it. It may belong to the scammer or the crime organization they’re affiliated with.
Instead, look up the financial institution’s customer service number and call it instead to air your concerns.