Don’t bank on a “cleared” check 

Fake check scams take advantage of what we don’t 

know about how banks handle check deposits. 

Scammers do know, and they trick people into sending 

them money before the bank spots the fake. The FTC’s 

Consumer Sentinel Network database shows that 

people reported more than 27,000 fake check scams in 

2019, with reported losses topping $28 million 

dollars.1

 And the data suggest that fake check scams 

disproportionately harm young adults – especially 

people in their twenties. 

Scammers have various fake check storylines, and job 

and income opportunities top the list. Last year, about 

50% of people who reported a fake check scam to the 

FTC said they were offered a job or some other way to 

earn money.2

 Nearly half of those were fake mystery 

shopping jobs, and many others were phony car-wrap 

advertising opportunities. In another 18% of the 

reports, people said they got a fake check as payment 

for something they were selling online. 

Fake check scams have two telltale elements – a check 

to deposit and a plausible explanation for why you 

can’t keep all the money. The checks come in many 

varieties: a business or personal check, a cashier’s 

check, money order, or even a check delivered 

electronically. The ploys to get you to send back some 

of the money also vary. Potential mystery shoppers are 

told to use some of the money to “evaluate” a retailer 

by buying gift cards or money orders, or by wiring 

money through MoneyGram or Western Union. (The 

scammers make sure to get the gift card PIN number 

from you, or delay you from canceling the money 

order.) People who apply online and are hired as 

“personal assistants” are told to use the money to buy 

gift cards for the new boss (and, again, to give up 

those PIN numbers). People interested in car wrap 

advertising are told to send money to supposed decal 

installers – who never materialize. People buying 

something from you online “accidently” send a check 

for too much and ask you to refund the balance. 

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These scams work because, once you deposit a check, 

you quickly see the funds in your account. Parting 

with some of that money then feels risk-free. But 

scammers know that while the law says banks have to 

make funds from deposited checks available within a 

day or two, it can take weeks to uncover a fake. Some 

scammers even tell you to wait for the check to “clear” 

before sending money. When it ultimately bounces, 

the bank can take back the amount of the fake check, 

leaving you on the hook for the money. 

Say you deposited a check for $1,000 and 

sent $600. A while later, the bank finds out 

the check was fake. It withdraws the full 

$1,000 from your account. Now, you’re out 

$600. If you didn’t have money in your 

account to cover that loss, you also have a 

negative balance. 

The number of reports made directly to the FTC 

about fake checks are on the rise – they’re up by 

about 65% over 2015 levels.3

 What’s more, no 

other fraud among last year’s top ten most 

frequently reported scams came close to the 

individual losses people reported on fake check 

scam last year.4

 The median individual loss 

reported on fake checks was $1,988, compared to 

$320 on all fraud types combined. And people 

reported that the scammers often asked to be paid by 

gift card or wire transfer. Con artists favor these 

payment methods because once the money is sent, it is 

almost impossible to trace or reverse. 

Younger people are hit especially hard. Last year, 

people in their twenties were more than twice as likely 

as people 30 and older to report losing money on a 

fake check scam.5

 Many college students have 

reported that the scam started with a message sent to 

their student email address. Scammers make these 

emails seem official – they may even impersonate the 

school’s career services office. 

To avoid these scams, here are a few things to know: 

 If someone sends you a check and tells you to

send money – whether by wiring money or

buying gift cards – you can bet it’s a scam.

 Even if you see the money in your account,

the bank can still take it back if the check later

bounces. If you don’t know the person who

wrote the check, don’t send money. Period.

 If you’re selling online, never accept a check

for more than your asking price.

To learn more about what to do if you have already 

sent money to a scammer, visit ftc.gov/fakechecks. If 

you paid a scammer with a gift card, visit 

ftc.gov/giftcards. If you spot a scam, report it to the 

FTC at ftc.gov/complaint. 

1 These figures are based on fraud reports classified as “counterfeit check scams” submitted in 2019 by any person or data contributor and stored in the Consumer 

Sentinel Network database. 

2 Figures pertaining to the nature of the scammers’ stories are based on keyword analysis of the narratives provided in 2019 reports classified as “counterfeit check 

scams.” 

3 This figure is based on 14,017 reports about fake check scams submitted directly to the FTC in 2015 as compared to 23,064 such reports in 2019. In 2016, 2017, and 

2018 respectively, 15,840, 17,870 , and 18,463 such reports were submitted. These figures exclude data contributors to ensure the data reflects consistency in complaint 

capture over time. 

4 Of the nearly 60 Sentinel fraud subcategories, fake check scams ranked ninth based on the total number of fraud reports submitted in 2019. Of the ten most frequently 

reported frauds, government imposter scams had the second highest reported median individual loss of $1,100. Reports classified as unspecified are excluded. 

5 In 2019, 77% of fake check reports included usable age information. This age comparison is normalized based on the number of loss reports per million population by 

age. Population numbers were obtained from the U.S. Census Bureau Annual Estimates of the Resident Population for Selected Age Groups by Sex for the United States, 

States, Counties and Puerto Rico Commonwealth and Municipios (June 2019). 

 Consumer Protection Data Spotlight | February 2020 2