Fake Check Scams On the Rise | Arizona Financial Credit Union

In early September, the Better Business Bureau released a report warning about a spike in fake check scams. These scams now reach 500,000 victims each year. Many of the victims are in their 20s – a segment of the population that’s far more familiar with PayPal than with paper checks. This makes them easy victims for the scam.

Aside from ordinary checks, this scam can also be pulled off with cashier’s checks and money orders, and will involve a scammer “overpaying” a victim and requesting that a check be cashed with the difference being deposited into a designated account belonging to the scammer.

Here are the most common variations of the scam:

In each case, the fake check or money order will seem to clear at the bank or credit union. It’s only a few days later, when the victim’s payout to the scammer is deposited and the account does not have sufficient funds to cover it, that the scam becomes clear.

Wondering if a check is a fake? Hold it up to this checklist:

• Is the check’s paper stock weak and flimsy?
• Check the company’s name and address. Are they spelled correctly?
• Verify that the check’s identification numbers printed at the top and the bottom match up.
• If you’re allegedly holding a lottery winning check in your hands, it should be written out by a state lottery commission.
• Look for the special ink required for the Magnetic Ink Character Recognition (MICR) code at the bottom of the check.
• The check should have a routing number on it. You can Google the bank to find out if the routing number is genuine.

It’s also important to know which kinds of transactions are likely to be scams. If you come across any of the following, run the other way and don’t look back:

• You’re asked to wire money to a company you’re not familiar with.
• You’re given a check by a “buyer” that’s made out for more than the item’s sale price.

Now that you’ve learned how to spot a fake check and the kinds of transactions to avoid, those scammers don’t stand a chance!

Your Turn: Have you ever been targeted by a fake check scam? Share your story with us in the comments!