Fake Check Scams: How They Work and Warning Signs

The money appears in your account, but if the check is fake, it is your money that goes.

By Siddharth ShankarUpdated October 24, 2026

A check that clears feels like proof that the money is real. In fake check scams, that feeling is the trap. This guide follows the FTC’s consumer advice on fake check scams.

How the scam works

The pattern is simple:

1. Someone gives you a reason to deposit a check, such as a job, a prize or a sale.
2. They ask you to send some of the money onwards, often by wire, gift cards, cryptocurrency or a payment app.
3. The bank later finds the check is fake and takes the full amount back out of your account.

By then, the money you sent is gone, and you are left owing your bank.

Why the money appears so quickly

The FTC explains that banks are required to make deposited funds available quickly, but that does not mean the check is genuine. It can take days or weeks for the bank to discover that a check is fake. “Available” funds are not the same as “cleared” funds. You are responsible for the checks you deposit.

Common versions

The FTC lists several common pretexts:

• Mystery shopper. You are asked to deposit a check and test a money transfer service.
• Personal assistant or other job. You are told the check covers supplies or equipment.
• Car wrap advertising. You are paid to put an ad on your car, and told to send money to a “decorator”.
• Prize or lottery. You are told to pay fees or taxes before you can collect.
• Overpayment. A buyer sends too much and asks you to refund the difference.

Warning signs

• Someone you have never met sends you a check and asks you to send money back.
• You are told to keep the exchange secret or act quickly.
• You are asked to pay by wire transfer, gift cards, cryptocurrency or similar methods.
• The amount is more than you were owed.
• The job pays surprisingly well for little work, or involves handling money.

What to do if you deposited a fake check

• Contact your bank at once and tell them you think the check is fake.
• Contact the service you used to send money. The FTC lists MoneyGram on 1-800-666-3947 and Western Union on 1-800-325-6000. If you paid by gift card, contact the card issuer.
• If the check came by mail, the US Postal Inspection Service can be reached on 877-876-2455.
• Report it. Use ReportFraud.ftc.gov.

Do not send any more money, and do not spend funds you think may be from a fake check.

Protect your information

Scammers who find out your name, address or bank details can reuse them. If you shared account information, ask your bank about monitoring or a new account, and consider the steps for identity theft. Learn how scammers find victims in how scammers get your phone number and email.

Related scams

Fake checks often arrive with fake jobs; see fake job offer red flags. The payment methods scammers prefer are explained in gift card scams and Bitcoin ATM scams. For property purchases, see a wire fraud case.