How to Spot and Prevent Check Fraud

Check fraud might sound like a thing of the past, but it remains a very real, and growing threat to individuals and businesses. As more people adopt online payment methods, criminals are getting more creative in how they exploit paper checks. From altered amounts to complex fake check scams, the tactics are evolving fast. At Vision Bank, we believe that knowledge is one of the best defenses against check fraud, which is why we want to help you identify some of the warning signs and what you can do to remain safe.

What Is Check Fraud?

Check fraud happens when someone manipulates or counterfeits a check to steal money. It can involve forging a signature, altering the check’s information, creating a fake check entirely, or tricking someone into depositing a fraudulent check. With mail theft and digital tools becoming more accessible, these scams are on the rise and being victimized by one can be demoralizing and financially damaging.

For example, you might receive a check that looks legitimate and are asked to deposit it, then send part of the money back to the sender. By the time the check bounces, your money is already gone. Learn more about this common scheme in our blog on fake check scams.

Common Types of Check Fraud

Here are some of the most frequent check fraud tactics used by scammers:

Counterfeit Checks: These are fake checks that use real account numbers or mimic legitimate checks from real businesses.
Altered Checks: The check starts out legitimate, but the scammer changes the amount or the recipient's name.
Forged Signatures: A fraudster signs someone else’s name to a real check without permission.
Check Washing: Thieves use chemicals to remove ink from a legitimate check and rewrite it with new information.
Fake Check Scams: You receive a check out of the blue and are told to send a portion of the money elsewhere. This is especially common in online marketplaces or employment scams. Types of fake check scams include:
- Mystery Shopping: You’re hired to evaluate a store or service and instructed to deposit a check, buy gift cards, and send back the PINs. The check later bounces, leaving you responsible for the gift card purchases.
- Personal Assistant Jobs: After applying online, you receive a check and are asked to buy gift cards for your "boss." From there, the scam unravels and you’re left covering the loss.
- College Student Scams: Students are targeted with checks for fake jobs, scholarships, or grants. They're told to deposit the check and send some money back for “processing” or “materials,” which never arrive.
- Inheritance or Estate Scams: Victims receive a letter and check claiming they're the beneficiary of an unexpected inheritance. They’re asked to cover legal or transfer fees before receiving the full amount, which never comes.
- Prize Claims: You’re told you’ve won a prize and must send money to cover fees. Real contests don’t ask winners to pay first.
- Overpayment Schemes: A buyer sends a check for more than the sale price and asks for a refund of the difference. The check turns out to be fake.

These scams work because fake checks can look very convincing, even to bank employees. Some are printed with real bank names or drawn from stolen accounts. It can take days or even weeks for the bank to determine that the check is fraudulent, making it harder to trace back to the culprits.

Red Flags to Watch For

Scammers are clever, but there are some telltale signs that a check might not be what it seems.:

The check is from someone you don’t know or weren’t expecting
There are inconsistencies in fonts, spacing, or the layout of the check
The check asks you to act quickly or send money back
It’s a high dollar check with no clear explanation
You’re being asked not to discuss the transaction with others
The check is drawn from a bank that’s located far away or has an unfamiliar name
The sender overpays "by mistake" and wants you to send the difference back
The envelope or communication includes grammatical errors or vague explanations

Criminals often count on people to act quickly and avoid asking questions. If you're being rushed or pressured, it's worth taking a step back. Double-check details, look up the issuing bank, and contact the sender directly using verified information, never the number listed on the check.

If something feels off, it probably is. Don’t hesitate to reach out to your local Vision Bank branch for help. This is definitely a case of better to be safe than sorry.

How to Protect Your Checks

While digital banking is often safer, checks are still widely used for personal and business payments. Here are a few ways to protect yourself:

Use online bill pay or secure electronic payments when possible
Never leave blank spaces on a check
Fill out checks using permanent ink, preferably gel ink, which is harder to wash off
Keep blank checks in a safe, secure location
Mail checks inside the post office, not from your home mailbox
Regularly review your bank account activity and report anything unusual right away

If you own a business, consider using systems like Positive Pay and ensure that at least two people are involved in authorizing and reconciling checks.

What to Do If You Suspect Check Fraud

If you believe you’ve received or written a fraudulent check:

Contact Vision Bank immediately so we can put a hold on your account or investigate the issue.
Save any emails, envelopes, or instructions associated with the suspicious check.
File a report with the Federal Trade Commission and the U.S. Postal Inspection Service.
Keep an eye on your credit and consider placing a fraud alert on your report if sensitive information was shared.

How Vision Bank Helps Protect You

Vision Bank uses a multi-layered approach to help keep your finances secure:

Online Security Features: Our digital platforms include session timeouts, encryption, and multi-factor authentication.
In-Person Verification: We check ID for in-branch transactions if we don’t recognize the person.
Secure Card Processing: Our card control tools and staff verification process reduce the risk of card-based fraud.
Wire Transfer Safeguards: We call back to confirm wire transfers with the person who initiated them.
Deposit Holds: In certain cases, we may place a temporary hold on deposits to ensure the funds clear and protect against potential fraud.
Quick Reporting Tools: You can easily report lost or stolen cards through our website or at any of our locations.

Plus, our blog is filled with up-to-date security resources, including information and advice on scams targeting seniors and even more fraud prevention strategies.

At Vision Bank, check fraud prevention starts with education. Knowing how to detect check fraud, avoid check scams and protect your checks are key steps in safeguarding your finances. Whether you’re dealing with paper checks or electronic payments, our team is here to help you stay informed and secure.

A Smarter, Safer Way to Bank

While no system is foolproof, knowing the signs of check fraud and staying proactive can dramatically reduce your risk. Vision Bank is here to help you every step of the way. If you’ve received a suspicious check or simply want help learning how to protect your financial information, we invite you to connect with your local branch.

Check out our blog for more insights and updates on financial security, or contact us today to learn how Vision Bank's secure banking services can keep your transactions safe. You can also visit one of our many South-Central Oklahoma locations to speak with a local banker about protecting your financial future.