If you unknowingly deposit a fake check, the bank will eventually discover it's counterfeit (which can take weeks) and reverse the deposit, removing the funds from your account, leaving you responsible for any money you spent and potentially causing overdrafts, fees, or even account closure if the bank suspects fraud. You'll likely lose any money you sent to the scammer, and you must repay the bank for the fraudulent amount.
If you deposit a scammer's check, the bank initially makes funds available, but when the check is discovered to be fake (which can take weeks), the bank reverses the deposit, making you responsible for any money you spent or sent to the scammer, often resulting in overdrafts, fees, and lost funds, plus potential investigation by law enforcement. Essentially, the scammer gets your real money, and you owe the bank for the fake funds.
Important: It can take weeks to discover a fake check after it's been deposited. Be careful because you may be responsible for the full amount of the check. And if you send money back to a check scammer, we may not be able to recover those funds.
What Risks Do Consumers Face If They Deposit Counterfeit Checks or Money Orders in Their Bank Accounts? Consumers who accept and deposit counterfeit checks or money orders into their bank accounts soon learn that their financial institution will hold them liable for the full face value of the checks or money orders.
After you've deposited the money (and potentially spent it or sent it to someone else), the bank inspects the check and finds that it isn't legitimate. Then, the bank debits your account for the amount of the fake check, and may also charge you a processing fee.
How Long Does a Bank Fraud Investigation Take? In the U.S., banks have ten business days to conduct a bank fraud investigation after a customer makes a claim. If the bank hasn't made a determination by this point, it must temporarily credit the customer's account while continuing the bank fraud investigation process.
Yes, banks always verify checks before cashing. Checks have no intrinsic value, so banks have to check the account numbers to determine if there is money in the account and if the accounts exist.
Once a bank identifies a check as counterfeit, the depositor must cover the check's amount. Additional consequences include potential overdraft fees, late payment fees, and possible account closure. A negative banking history, such as being reported to ChexSystems, may result from depositing fake checks.
Common features of a fraudulent check
The paper the check was printed on is thin. There is no bank logo on the check, or if there is one, it is faded or warped. The text on the check is slanted, warped, or faded. The routing number does not match the routing number of the bank the check was issued by.
Some common warning signs include: A check that does not have a MICR line at the bottom. A routing code in the MICR line that does not match the address of the drawee financial institution.
Bank policies on check verification
Some banks won't verify checks over the phone. Instead, they may verify if the checking account involved is legitimate, but they may be reluctant to verify the check funds.
Fraudulent checks will clear quickly.
Although the money is available for you to withdraw from, the bank may discover a forgery a few weeks down the road and the check may bounce.
Yes, banks can refund scammed money, but it depends heavily on the payment method, how quickly you report it, and if the transaction was truly "unauthorized" (someone stole your login) versus you being tricked into sending it (authorized push payment). You're more likely to get a refund for unauthorized card charges or bank transfers if reported fast, but it's harder for Zelle, wire transfers, or gift cards, though filing a formal dispute or complaint with agencies like the Consumer Financial Protection Bureau (CFPB) can help.
A Modern Twist on Classic Check Fraud
Here is how check fraud typically works: Fraudsters deposit a check that is either fake or altered into their account using a mobile deposit feature. Banks, including Chase, often allow customers to access a portion of the funds immediately, even before the check is fully cleared.
Fake checks can take weeks to be discovered and untangled. By that time, the scammer has any money you sent, and you're stuck paying the money back to the bank. Your best bet: Don't rely on money from a check unless you know and trust the person you're dealing with.
If you think you've been targeted by a counterfeit check scam, report it immediately to any of the following agencies: The U.S. Postal Inspection Service at www.uspis.gov (if you received the check in the mail).
Check cashing services verify a check's legitimacy by reviewing its security features, validating account details, and confirming identity before releasing funds. They inspect elements like routing numbers, MICR lines, signatures, and watermarks to spot signs of fraud.
Contact your bank or credit union right away. State law generally provides that you are not responsible for a check if someone forged the signature of the person to whom you made out the check. Tell your bank or credit union what happened and ask for the money to be restored to your account.
Counterfeit Check
When this check clears the client's account, it will usually be out of the check number range, which may be the first red flag for the paying institution. As was the case with forged signatures, once the 24-hour return window has passed, the paying bank warrants these situations.
Here's the rough truth: whether you knew it was fake or not, you're still responsible for the funds. Consequences can include: Your bank reversing the deposit, pulling the money from your account. Overdraft fees or returned payment charges if you've already spent part of it.
Personal, business, and payroll checks are good for 6 months (180 days). Some businesses have “void after 90 days” pre-printed on their checks. Most banks will honor those checks for up to 180 days and the pre-printed language is meant to encourage people to deposit or cash a check sooner than later.