Fake Check and Overpayment Scams Explained
A check can appear to clear and still be reversed. Learn how fake check and overpayment scams work, the warning signs, and what to do next.
You deposit a check. The money appears in your account. Then you're asked to send some of it somewhere else.
It can look like the check cleared and the money is yours. But money showing up in your account doesn't necessarily mean the check is good. If the check later turns out to be fake, the deposit can be reversed.
That's what makes a fake check scam so convincing.
If someone sends you a check and asks you to send some of the money back, don't do it.
A fake check can look real, and the money may even appear in your account after you deposit it. That doesn't necessarily mean the check has fully cleared.
If the check is later found to be fraudulent, the bank may reverse the deposit. Any real money you sent in the meantime may already be gone.
An overpayment scam usually starts with a payment that seems legitimate.
Maybe you're selling something online and the buyer sends a check for more than the agreed price. Maybe you've accepted a new job and your employer sends money for equipment. Or someone says an assistant or accountant accidentally wrote the check for the wrong amount.
Whatever the explanation, you're asked to deposit the check and then use some of the money elsewhere.
You might be told to return the extra amount, pay a vendor, buy gift cards or send a money transfer.
The request may seem reasonable because you can see the deposit in your account. You're not being asked to send your own money, at least that's how it appears.
But if the original check is fake, that's exactly what can happen.
The check is eventually rejected or identified as fraudulent. The deposit is reversed, but the money you sent elsewhere was real.
If someone sends you more money than expected and asks you to send part of it somewhere else, stop before making another payment.
This is the part of a fake check scam that can be confusing. Just remember that money showing as available in your account isn't necessarily the same as the check being valid.
Banks may make some or all of the money from a deposited check available before the bank has determined that the check is legitimate.
That means you may be able to see the money in your balance or even spend it.
Although it's easy to assume that means everything has been verified, it could be pending.
A check still has to move through the banking system.
Problems may not be discovered immediately. For example, a check could appear to come from a real account but later be identified as fraudulent or altered.
There isn't one number of days you can use to decide that every check is safe. Therefore, it’s best to ask your bank about the specific check rather than assuming that available funds mean the process is complete.
If a deposited check is later rejected, the bank may remove the amount that was credited to your account.
If you already sent part of that money to someone else, that second payment is separate.
For example, your account might temporarily show money from a deposited check. You send part of it as instructed. Later, the check is found to be fraudulent and the original deposit is reversed.
The money you sent was still real. This delay between seeing money and learning that a check is fraudulent is what fake check scams rely on.
Fake checks can show up in situations that otherwise seem completely unrelated.
You're selling something and receive a check for more than the agreed amount.
The buyer explains it as a mistake and asks you to return the difference or send it to someone else.
An unexpected overpayment followed by a request to return money is a major warning sign.
You've been hired for a remote job and receive a check to buy a computer, software, or other supplies.
You're then told to purchase the equipment from a particular vendor or send some of the money elsewhere.
This can be part of a fake job offer scam, particularly when you haven't gone through a normal hiring process.
You're supposedly hired to evaluate stores or services.
A check arrives with instructions to deposit it and use the money to make purchases or payments as part of the assignment.
A legitimate job shouldn't require you to deposit a check and move the employer's money through your personal account.
A supposed landlord, tenant, or other person involved in a rental sends a check and later asks you to return part of the money.
If you're dealing with an unfamiliar landlord or property, see how to recognize rental deposit scams before making a payment.
A check arrives for winnings, a grant or another unexpected payment.
Then you're told you need to use some of the money to cover taxes, processing costs, or another fee. A check that arrives with instructions to send money back should be treated with caution.
A person you've developed an online relationship with sends a check and asks you to deposit it or use part of the money for them.
This can overlap with romance scams, particularly if you've never met the person or independently verified their identity.
Fake payments aren't limited to personal or business checks.
Money order scams can work in a similar way. Someone gives you a money order that appears legitimate and asks you to provide something of value, deposit it, or send part of the money elsewhere.
Money orders are sometimes assumed to be as good as cash, but counterfeit money orders exist.
The appearance of a money order isn't enough to confirm that it's genuine.
If you've received a MoneyGram money order and have questions about whether it's valid, use MoneyGram's current verification process before releasing goods or sending any money based on it.
Do not use contact information supplied by the person who gave you the money order as your only source for verification.
For general product information, see MoneyGram money orders.
Watch for these signs, especially when several happen together:
The common thread is simple: someone sends you a check and then needs you to move real money before you're able to confirm that their payment is legitimate.
Don't rely on how professional the check looks.
If you need to verify a check, contact the financial institution it claims to come from using contact information you find independently.
Don't automatically use a phone number printed on the check or supplied by the person who sent it.
Ask the financial institution what information it can verify. There may be limits to what it can tell you, and verification at one point in time may not answer every question about a check.
You can also contact your own bank and explain the situation before using any of the funds.
Most importantly, don't let someone else's deadline become yours.
A scammer may insist that a payment has to happen today, that a vendor is waiting or that you'll lose a job or sale if you don't act quickly.
If you can't independently verify the payment within that timeframe, don't send money just because someone else is pressuring you to.
If you deposited a check and sent money before realizing something may be wrong, contact your bank immediately.
Tell them what happened and ask what you need to do about the deposited check.
If you used a money transfer service, gift card, payment app or another service to send money, contact that provider as soon as possible too.
Keep the physical check if you still have it. Save photos or scans, deposit records, receipts, messages, emails and any instructions you received.
You can also report suspected fraud to:
Don't send another payment because someone says it will fix the original problem.
Yes. Funds from a deposited check may become available before the check has been fully verified.
If the check is later found to be fraudulent or otherwise invalid, the deposit may be reversed.
There isn't one timeframe that applies to every check and every situation.
The important distinction is that funds becoming available to spend doesn't necessarily mean the check has been fully verified.
If you have concerns about a specific check, contact your bank before spending or sending any of the money.
That depends on the circumstances and your bank's policies and obligations.
Contact your bank immediately, explain exactly what happened, and ask what options may be available.
Yes. A document that appears to be a cashier's check can be counterfeit.
Don't rely on the appearance of the check alone. If you have concerns, contact the issuing financial institution using contact information you find independently.
Don't spend money based on it or send any of the funds elsewhere.
Keep the check and related records while you contact your bank and report the suspected scam. Your bank or the appropriate reporting agency can tell you whether they need additional information or the physical document.
Depositing a check that later turns out to be fraudulent doesn't by itself tell you what your legal position is.
If you're concerned about potential legal consequences, speak with your bank and seek appropriate independent advice based on your circumstances.
Don't rely on the person who sent you the check for guidance.
Wire fraud generally involves using electronic communications as part of a scheme to defraud someone.
Fake check scams can involve additional payments made electronically after the check is deposited. For more information about related payment scams, see protecting yourself from fraud.
Yes. Counterfeit money orders exist.
If you're dealing with a MoneyGram money order, use the current official process to verify a MoneyGram money order rather than relying on how the document looks.
Can MoneyGram reverse money I sent after depositing a fake check?
If you believe a MoneyGram transfer was connected to a scam, report fraud to MoneyGram as soon as possible.
Once money is transferred and received it cannot be recovered and, unfortunately, you will be at a loss for any money transferred.
