A worthless check that appears to clear, then bounces days later — leaving the victim liable for any funds spent.
Counterfeit checks look real and can pass an initial deposit because banks front the funds before verifying them. When the check is discovered to be fake, the bank reverses everything, and the account holder owes back any money already withdrawn or sent.
Fake checks power overpayment, mystery-shopper, and “equipment funds” job scams.
Red flags
- Receiving a check before performing any work
- Instructions to deposit and quickly send part back
- Check amount higher than agreed
Frequently asked questions
How long does it take to know if a check is fake?
It can take a week or more, well after your bank makes the funds available. Never spend or forward money from a check you weren't expecting until you've confirmed it has truly cleared.