What Is Check Fraud? How to Recognize and Prevent It

What Is Check Fraud?

Check fraud may sound like an old problem, but the ways criminals use checks continue to evolve. Check fraud happens when someone steals, alters or misuses a check to access money or banking information.

A stolen check can be changed, account information can be used to create counterfeit checks, and fake checks can be used in scams designed to convince you to send real money back.

Checks also contain sensitive information, including your name, address, account number and routing number. In the wrong hands, that information can be used to commit other types of financial fraud. And check fraud isn’t limited to paper. Fraudulent checks may also be sent electronically and deposited through mobile banking.

Knowing how check fraud works can help you recognize the warning signs and better protect your money.

5 Common Types of Check Fraud

Knowing the different ways check fraud can happen can make it easier to recognize.

• Mail theft. Criminals may target residential mailboxes, apartment mailrooms or public collection boxes looking for outgoing checks. Once stolen, a check can be altered, copied or used to access banking information.
• Check washing. A thief removes information from a completed check and rewrites it with a different payee or dollar amount. A small payment can become a much larger fraudulent transaction.
• Counterfeit checks. Scammers use stolen account information to create fake checks that can look legitimate.
• Forged checks. Someone signs another person’s name or changes payment or endorsement information without permission.

• Fake check scams. A scammer may send a fake check tied to a job, prize or online sale, then ask you to deposit it and send some of the money back. Even if the funds appear in your account, the check can later be rejected. These scams may also involve electronic checks, mobile deposits or peer-to-peer payment apps.

If someone sends you a check and asks you to send money back, stop before you act.

Warning Signs to Watch For

Check fraud isn’t always discovered immediately. A missing payment or unusual account activity may be the first sign that something is wrong.

Take a closer look if:

• A mailed check has not reached its recipient when expected.
• A check clears for a different amount than you wrote.
• You see a payment to a person or business you don’t recognize.
• Checks or other mail are missing.
• You receive a check you weren’t expecting.
• Someone asks you to deposit a check and quickly send money back.

Regular account monitoring can make these warning signs easier to catch.

Simple Ways to Protect Your Checks

You don’t have to stop using checks altogether. A few simple habits can help reduce your risk:

• Mail checks securely. Drop outgoing checks inside the post office when possible, and avoid leaving them in an unsecured mailbox overnight.
• Fill out checks carefully. Use permanent gel ink and avoid leaving blank spaces around the payee or dollar amount that could make the check easier to alter.
• Keep track of mailed checks. If an expected payment doesn’t arrive, follow up with the recipient.
• Review your account regularly. Compare cleared checks with your records and watch for unfamiliar activity.
• Set up account alerts. Alerts can help bring unusual transactions to your attention sooner.

Stay Protected With TVFCU

Regular account monitoring can help you spot check fraud sooner. TVFCU offers real-time fraud alerts and proactive account monitoring to help identify suspicious activity, and you can use the YOUR$ app to keep an eye on your accounts.

If a check goes missing, clears for the wrong amount or you notice activity you don’t recognize, contact TVFCU as soon as possible. Acting quickly can help limit further fraud and protect your account.

Want to learn more? Explore our Security Resources for more ways to protect your accounts and personal information, or visit our Fraud Prevention page for tips on recognizing and avoiding scams.