Fake check scams are a growing concern for consumers, costing victims millions annually. These scams often rely on urgency, deception and a general lack of awareness by consumers. Whether you receive a questionable check in the mail or just want to protect your checks from fraud, here’s what you need to know about check scams:

What Is a Fake Check Scam?

In a fake check scam, a scammer sends you a check that looks legitimate and asks you to deposit it. Then, they request that you send part of the money back before the check has cleared. When the bank discovers the check is fake, you may be left responsible for the full amount.

Fake check scams may appear as:

• Job offers, such as mystery shopper gigs
• Online sales or marketplace transactions
• Prize winnings
• Supposed overpayment for services

What to Do if You Receive a Suspicious Check

If you receive a check in the mail and something doesn’t seem right, don’t deposit it. Keep the documentation by saving the check, envelope and any related communication. Notify the Federal Trade Commission and your bank.

What is Check Washing?

Check washing is a form of fraud where criminals intercept checks in transit (usually through the mail) and use chemicals to erase the ink. They then rewrite the check for a different amount and send it to a new recipient in an attempt to walk away with ill-gotten gains.

How to Protect Against Check Washing

• Use pens with permanent ink
• Mail checks through secure USPS drop boxes, avoiding home mailboxes
• Monitor your accounts for unusual activity
• Consider electronic payments as an alternative to checks

How to Protect Your Checks

Whether you’re writing checks for payment or receiving checks, you can reduce your risk of check fraud by taking these precautions:

• Store checks safely at home and work
• Review bank statements regularly and check for anomalies
• Set up banking alerts for large or unusual transactions
• Shred old checks you no longer need to save before discarding

Check scams are serious financial threats, but with awareness and best practices, you can help protect yourself and your money. If you ever feel unsure about a check or transaction that affects your Cadence Bank account, reach out to your local branch for guidance. We’re here to help.

Sources:
https://www.aarp.org/money/scams-fraud/fake-check-what-you-need-to-know
https://consumer.ftc.gov/articles/how-spot-avoid-report-fake-check-scams
https://www.nerdwallet.com/article/banking/how-to-spot-a-fake-check

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.