Fake Check Scams: Why 'Send Back the Extra' Costs You

A check arrives for more than you expected, along with a reasonable-sounding request: deposit it, keep your share, and send the rest back. It looks real. Your bank even shows the money in your account. A few weeks later, the check bounces, and you owe the bank every dollar. That’s how a fake check scam works.

For related tricks, see our guide to bank impersonation and Zelle scams.

How does a fake check scam work?

The FTC describes the pattern: a person you don’t know asks you to deposit a check, usually for more than they owe you and sometimes for several thousand dollars. They tell you to send some of the money back to them or to someone else, and they always have a good reason why you can’t keep it all.

The checks can look like business or personal checks, cashier’s checks, money orders, or even electronic checks. The FTC says they generally look just like real checks, even to bank employees. They may be printed with the names of real banks, or be real checks drawn on the account of someone whose identity was stolen.

EXAMPLE — SCAM

Today 3:22 PM●●● ▮

From: Hiring Team <careers@assist-staffing.example.com>

Subject: Your first assignment and payment check

Congratulations on joining our team as a remote personal assistant!

A check for $2,950 has been mailed to you. Please deposit it today. Keep $450 as your first week’s pay, then use the remaining $2,500 to purchase gift cards for our client and send us photos of the card numbers.

Please complete this by end of day so we can move to your next assignment.

Why does the money show up in your account if the check is fake?

This is what makes the scam so convincing. The FTC explains that, by law, banks have to make deposited funds available quickly. Seeing money in your account doesn’t mean the check is good. Fake checks can take weeks to be discovered and untangled.

By the time the bank finds out, the scammer already has the money you sent, and you’re stuck paying it back to the bank. The FTC’s advice: don’t rely on money from a check unless you know and trust the person you’re dealing with.

What stories do fake check scammers use?

The FTC lists the most common setups:

• Prizes. A sweepstakes “winner” gets a check and is told to send money back for taxes or fees. See prize and lottery scams.
• Mystery shopping. Your “assignment” is to deposit a check and wire part of it to someone else.
• Personal assistant jobs. You’re told to use the check money to buy gift cards for your “boss.” See job and task scams.
• Car wrap ads. You deposit a check and send money to “decal installers” who don’t exist.
• Online sales. A buyer “accidentally” overpays for something you’re selling and asks you to refund the difference.

In every version, money moves from the fake check to a gift card, crypto or wire transfer. Once it does, the FTC says, it’s almost impossible to get back.

What should you do if you deposited a fake check?

Act fast:

1. Stop. Don’t send any more money, even if you’re told it’s the last step.
2. Call your bank and explain what happened. Ask whether the check has cleared and what you can do.
3. Contact the company you used to send money. If you bought gift cards, call the gift card company immediately and keep the card and receipt. If you wired money, call the wire transfer company right away. See gift card scams for details.
4. Report the scam to the FTC at ReportFraud.ftc.gov.

Payment apps are another favorite for “send back the difference” requests. Read about Zelle and payment app scams. Our first-hour checklist after a scam covers each payment method, and where to report a scam lists every agency.