Finding out you’ve been a victim of check fraud can be stressful, whether a check was stolen from the mail, an unauthorized payment appeared on your account or you deposited a check that turned out to be fake.
No matter how the fraud occurred, acting quickly is important. The sooner you respond, the better your chances of limiting financial loss, protecting your account and preventing additional fraud.
If you suspect check fraud, take these steps as soon as possible.
Contact Your Financial Institution Immediately - Your first step should be to contact your financial institution and explain what happened. Be prepared to provide details about the suspicious transaction, including when you noticed it and any check numbers or payment information involved. Depending on the situation, your financial institution may be able to place a stop payment, secure or restrict your account, begin an investigation or provide information you may need when reporting the fraud. Do not wait to see if the issue resolves on its own. The sooner you report suspicious activity, the better.
Review Your Account for Additional Fraud - One fraudulent transaction may not be the only one. Review your recent account activity carefully and look for:
- Checks you do not recognize
- Unusual withdrawals or transfers
- Changes to your account that you did not make
If possible, review at least the previous 30 to 60 days of activity. If your account information has been compromised, a fraudster may attempt additional transactions.
Document What Happened - Keep records of anything related to the suspected fraud, including:
- Suspicious transactions
- Check numbers
- Emails, text messages or other communications
- Dates and details of phone calls
- Police reports or fraud reports
- Case or reference numbers
Keeping organized records can make it easier to dispute fraudulent activity and provide information to your financial institution or law enforcement if needed.
Report the Fraud - Depending on the circumstances, you may need to report the fraud to local law enforcement or another appropriate agency. This may be especially important if mail was stolen, identity theft is involved or you were targeted by a scammer. Ask your financial institution what reports or documentation may be recommended for your situation, and keep copies for your records.
Secure Your Account -If your account information has been compromised, your financial institution may recommend closing the affected account and opening a new one. You should also take steps to strengthen your account security, such as:
- Changing your online banking password
- Updating your PIN
- Reviewing accounts or payment methods linked to the affected account
- Changing passwords on other accounts if you reused the same password
Replace Compromised Checks -If physical checks were lost or stolen, notify your financial institution of the missing check numbers. Store any remaining checks in a secure place and order new checks if necessary. Avoid using check numbers that may have been compromised.
Watch for Signs of Identity Theft - Checks contain personal and financial information that could potentially be used for other types of fraud. In the weeks and months following an incident, watch for:
- Unfamiliar credit activity
- Unexpected bills
- Collection notices
- Accounts you did not open
- Additional suspicious financial transactions
What If You Deposited a Fake Check?
If you deposited a fraudulent check as part of a scam, contact your financial institution immediately and explain what happened. Even if the funds initially appear in your account, that does not necessarily mean the check is legitimate. If the check is later returned as fraudulent, the funds may be removed from your account. Be especially cautious if someone sends you a check and then asks you to send part of the money back, purchase gift cards or transfer funds somewhere else. These are common warning signs of a fake check scam.
Protect Yourself Going Forward
Taking a few precautions can help reduce your risk of check fraud in the future:
- Review your account activity regularly
- Set up account and transaction alerts
- Mail checks from secure locations
- Keep unused checks in a safe place
- Be cautious of unexpected checks or payments
- Verify suspicious requests before sending money
- Contact your financial institution whenever something does not look right
Check fraud can happen in many different ways, but knowing how to respond can help you protect your money and personal information. If you notice suspicious activity, act quickly and contact your financial institution as soon as possible.
*Made in partnership with the American Association of Credit Union Leagues, America’s Credit Unions and TruStage.