Check fraud includes several forms of financial deception, such as writing bad checks, stealing checks, altering checks, and forging checks. To protect yourself, monitor your checking account carefully and stay cautious if anyone sends you unexpected checks.

How Check Fraud Happens

Check fraud works differently depending on the scheme. In some cases, a person knowingly writes a check for more money than they have in their account. In more advanced schemes, criminals alter or counterfeit checks to steal funds from victims or financial institutions.

Common Types of Check Fraud

Paper hanging: A person intentionally writes a bad check and takes advantage of the settlement delay ("float time") before the recipient realizes the check will bounce.

Check kiting: Fraudsters move bad checks between multiple bank accounts to temporarily cover balances, then withdraw cash before the fraud is discovered.

Check washing: Criminals steal checks from mailboxes or mail routes, remove payee and amount details using chemicals, then rewrite and deposit them.

Check alteration and counterfeiting: Attackers scan checks, modify details with software, and print fake checks designed to bypass basic protections.

Check theft and forgery: Criminals steal blank checks and forge signatures instead of modifying an existing completed check.

How to Avoid Check Fraud

Never write checks without sufficient funds. It is illegal and can result in fees, penalties, and legal consequences. Even unintentional overdrafts can create banking problems and make it harder to open new accounts in the future.

Use safer payment methods when possible, such as card payments, verified transfer apps, or bank bill-pay services.

Use permanent black gel ink when writing checks, and avoid leaving mailed checks in unsecured residential mailboxes.

Check your mailbox daily and monitor account activity frequently. If you are away, request mail hold service to reduce theft risk.

How to Protect Yourself from Fake-Check Scams

Be cautious when someone overpays by check and asks you to return the difference. Even if funds appear available, fraudulent checks can be reversed days or weeks later, leaving you liable for the loss.

If You Become a Victim

If a check was stolen, washed, or forged, contact your bank immediately and file a police report. Recovery may take time, but rapid reporting improves your chances of reimbursement.

If you deposited a fake check and sent money onward, report the fraud to every payment channel used. Recovery may be difficult for cash, gift cards, crypto, or older wire transfers.

Also report incidents to anti-fraud authorities to help track criminal groups and protect others.

Monitor Your Credit and Identity

Check fraud may be linked to broader identity theft activity. Credit monitoring and identity protection tools can alert you to suspicious credit applications and help reduce long-term risk.