A Consumer's Guide
In today’s digital age, financial transactions have become faster and more convenient, but they also come with risks. One persistent threat is fraudulent checks. These deceptive instruments can be used to commit a variety of scams, and falling victim can have serious consequences. Learn what to lookout for and how to protect yourself from check fraud with National Bank of Virginia.
What is a Fraudulent Check?
A fraudulent check is a financial instrument created with the intent to deceive. It might appear to be a legitimate check from a real bank or business, but it’s actually a tool for fraud. Common types of fraudulent checks include:
- Counterfeit Checks: Fake checks that mimic the appearance of real ones.
- Stolen Checks: Checks stolen from legitimate accounts and used without authorization.
- Altered Checks: Real checks that have been modified to deceive the recipient.
How Fraudulent Checks Work
Fraudulent checks are often used in scams where the fraudster sends you a check with the intention of getting you to cash or deposit it, and then performs certain actions, like sending a portion of the money elsewhere. Here’s a typical scam scenario:
- Receiving the Check: You receive a check in the mail, often with a compelling story or urgent request.
- Depositing the Check: You deposit the check into your account, and it appears to clear, giving you access to the funds.
- Acting on the Request: You’re asked to wire a portion of the money, buy gift cards, or perform other actions.
What to Watch Out For
Being aware of red flags can help you spot fraudulent checks before they cause harm. Here are some common indicators of check fraud:
- Unsolicited Checks: Be wary of checks you didn’t expect. If you receive a check out of the blue, it could be a scam.
- Too Good to Be True Offers: Scams often come with offers that sound too good to be true, like unexpected lottery winnings or job opportunities.
- Requests for Personal Information: Scammers may ask for your personal details under the guise of verification.
- Unusual Sender Information: Check the legitimacy of the company or individual sending the check. Research their contact information independently.
- Suspicious Check Details: Look for discrepancies in the check’s appearance, such as poor-quality printing, irregularities in the financial institution’s logo, or incorrect information.
How to Protect Yourself
To stay safe from fraudulent checks, follow these preventative measures:
- Verify the Source: Always verify the legitimacy of any check you receive. Contact the issuing financial institution or company directly using information from a reliable source, not the contact details provided with the check.
- Wait for Full Clearance: Even if a check appears to clear, it might still be fraudulent. Financial institutions may take weeks to discover a fake check, and you could be held responsible if you’ve already spent the money.
- Use Secure Payment Methods: Avoid accepting or sending money through unfamiliar or unsecured methods. Use reputable payment services like Zelle® and avoid wiring money or buying gift cards for strangers.
- Monitor Your Account: Regularly review your account activity in online banking or your mobile banking app for any unauthorized transactions or unusual activity and set up automatic alerts.
What to Do If You’ve Been Scammed
If you find yourself a victim of a check fraud scam:
- Contact Your Financial Institution: Notify National Bank right away by calling our Customer Assistance Center at 800-552-4123. We can guide you through the steps to protect your account and potentially reverse transactions.
- File a Police Report: Report the scam to your local law enforcement. This can help with investigations and potentially prevent others from falling victim.
- Alert the FTC and IC3: File a complaint with the Federal Trade Commission and the Internet Crime Complaint Center to help authorities track and combat these scams.
- Review Your Credit Report: Check your credit reportfor any unauthorized activity or accounts opened in your name. Consider placing a fraud alert on your credit file if necessary.
Fraudulent checks remain a significant threat to customers, but being vigilant and informed can help you avoid falling victim. By understanding how these scams work, recognizing the warning signs, and taking proactive steps to protect yourself, you can safeguard your finances and avoid the pitfalls of check fraud. In the unfortunate event anything does happen, remember to contact National Bank so we can help. For additional information on keeping your accounts safe, check out our Security Center and contact us if you have any questions.