Types of Check Fruad

Check Yourself: 5 Types of Check Fraud You Should Know

Check fraud doesn’t always look the same.

Sometimes it starts with stolen mail. Other times it starts with a fake job offer, prize scam, or altered payment.

Understanding how fraud happens can help you spot red flags before money is lost.

This week, we’re sharing new resources from America Saves, which include the five most common types of check fraud and what to watch for, from check washing to counterfeit checks.

Take a few minutes to review these common tactics, and share this information with family and friends.

Awareness is one of the best tools for prevention.

View the Fraud Types Guide

5 Types of Check Fraud You Should Know

• Mail Theft: Checks stolen from mailboxes or collection boxes before delivery. 
• Check Washing: Stolen checks altered by changing the payee name or dollar amount.
• Counterfeit Checks: Fake checks using stolen account information.
• Forged Checks: Forged drawer signatures, endorsements or altered payment details.
• Fake Check Scams: Scams involving job offers, prizes, overpayments, or online sales. Many now involve electronic checks, mobile deposits, or requests to send money through peer-to-peer payment apps. 

Signs to Watch For

• Missing mail or delayed payments
• Unexpected checks or payments
• Checks clearing for the wrong amount
• Unfamiliar account activity or transactions
• Pressure to send money quickly
• Requests to deposit a check and return part of the money electronically

Prevention Tips

• Secure outgoing mail whenever possible
• Monitor your bank account regularly
• Set up account alerts
• Verify unexpected checks or payments
• Never send money back before a check fully clears
• Be cautious with electronic checks or payment requests from unknown people 

Disclaimer: All materials provided are courtesy of America Saves and Veteran Saves, in partnership with the American Association of Credit Union Leagues (AACUL), America’s Credit Unions, and TruStage®. These materials are used with permission where applicable and remain the property of their respective organizations.