Check Cashing Scams

Job scams are on the rise, but they’re easy to spot once you know what to look for.

How it Works

You respond to an email job offer. Once you’re hired your “employer” sends you a (fraudulent) check.

They tell you to deposit the check and do one or more of the following:

• Send part of that money to third parties using cash apps like Venmo and Zelle or wire transfer services like Western Union
• Buy gift cards and send the bar codes to third parties
• Tell you to repay them an apparent overpayment from your paycheck via a cash app or wire transfer

When the fake check bounces, your bank holds you responsible for the funds sent.

This is just one type of job scam. For other types of job scams, see the Federal Trade Commission’s guide to Job Scams.

How to Identify a Fake Check

• Make sure the check was issued by a legitimate bank. BankFind
• Check with the bank that supposedly issued the check to make sure it is real. Don’t use the number on the check. Call the official number and ask them to verify the check.
• Consider how and why you received the check. If someone you don’t know initiated the payment, be skeptical and proceed cautiously. Scammers often communicate with their victims via e-mail or text message.
• Look where the check was mailed from--if the postmark is not the same as the city and state of the “supposed” issuing bank.
• Determine if the amount of the check is correct and as expected. Fake checks are often made out for more than the agreed upon amount.
• Official checks usually contain watermarks, security threads, color-changing ink and other security features. While scammers are able to sometimes copy these security features, the quality is often poorly executed.

A Sample Fraudulent Check:

What to do if you fell for a scam

No matter how you paid — debit or credit card, bank or wire transfer, gift card, or cash reload card — immediately contact the company (bank, credit card) you used to send the money, report the fraud, and ask to have the transaction reversed, if possible.

If you think you’ve been targeted by a counterfeit check scam, report it immediately to any of the following agencies:

• The U.S. Postal Inspection Service (if you received the check in the mail).
• Your state or local consumer protection agencies. Visit the National Association of Attorneys General (NAAG) for a list of state Attorneys General.
• For possible online crimes involving counterfeit checks and money orders, file an online complaint with the Internet Crime Complaint Center (a joint project of the FBI and National White Collar Crime Center)
• For specifics on lots of different situation visit the FTC What to Do webpage
• Contact The New School:
• Information Security & Privacy Office at ISPO@newschool.edu
• Career Services Office at CareerServices@newschool.edu

Learn More

To learn more about how to protect your information and avoid falling prey to online scams, contact the Information Security and Privacy Office at ispo@newschool.edu.