Spotting Fake Business Checks: Essential Tips for Small Business Owners
Knowing how to spot fake business checks can help you protect your small business from fraud and financial loss. Scammers sometimes use checks that look real, often with real company names and account numbers, making it hard to notice something is wrong until it’s too late. Accepting a fake check can lead to bounced payments and added headaches with your bank.
Learning common red flags is important. Watch for checks from unusual senders, requests to send money elsewhere, or checks that look different from what you expect. You can take steps to verify checks by contacting the issuing bank or double-checking the details.
Safe habits like double-checking checks before deposit and keeping employees informed about warning signs help keep your business safer. Staying alert to scams is a step toward keeping your business secure.
Fake business checks can cause serious losses for small businesses. Knowing what these look like, the situations in which they appear, and how a real check is different helps you protect your company’s finances.
Fake business checks come in several forms. Counterfeit checks look like legitimate business checks but are printed by scammers using stolen details such as bank account numbers or company logos. Altered checks start out as real checks but are changed after being written. Common changes are edits to the payee’s name or the amount of money. Stolen checks are real checks taken from your business and used without permission. Some fake checks are sent electronically and can look very real because scammers use professional printing methods. You may also see checks used in business email compromise attacks, where fraudsters trick your staff into accepting or processing the fake items.
You might receive a fake business check as payment for goods or services, especially in deals with new vendors or customers. Another frequent situation is a request for a refund. For example, a scammer sends a check worth more than you are owed and then asks you to wire back the extra money before the check bounces. Some scams start with a phishing email that looks like it is from a vendor or business partner, convincing someone at your company to print or deposit a phony check. Stolen checks can be taken from your incoming or outgoing mail, then quickly altered or cashed by criminals. Watch for any sudden or unusual payment method changes during business deals, as these are often signs of check fraud.
A real business check is printed on high-quality check stock with clear details, including the correct business name, address, and bank logo. Most genuine checks have security features like watermarks or microprinting. Fake checks may have blurry printing, misspelled words, or mismatched fonts. If the bank’s name is unfamiliar or cannot be verified, the check may be fake. Double-check the account and routing numbers—scammers often use valid numbers copied from real checks, but other details can still give them away. If you spot anything unusual, verify the check by calling the issuing bank using a publicly listed number, not the one printed on the check.
Spotting fake business checks helps you protect your company from payment fraud and identity theft. You can use physical security features, check details, and clear warning signs to determine if a check is real or fraudulent.
Start by looking at the paper. Many real business checks are printed on thicker, high-quality stock. Hold the check up to the light to check for watermarks, which are often used as a security feature.
Look for microprinting, which is tiny printed text usually found on signature lines or borders. If you can't read it with magnification, the check could be fake. Some checks also have security threads or color-changing ink.
Pay attention to the edges. Real checks are cleanly cut, not torn from perforated edges unless valid for that check type. If any security features are missing or look odd, this should raise concern. Using a checklist or reference from trusted sites like 6 tips to spot and prevent fake checks and scams can help.
Check the check number first. Low check numbers (often below 100 or 101) are commonly found on fraudulent checks. Compare the routing number to see if it matches a real bank and is in the right place.
Double-check the business name and address on the check. Look for typos or anything that feels off. Make sure these details match the sender’s information and verify them if possible.
If a money order or cashier's check was used, treat it with caution. Scammers often use these types because people assume they are safer. If you have doubts, contact the issuing bank directly to confirm that the check is real and hasn't been reported as stolen or fake.
If a customer overpays and asks for money back, this is a common sign of a scam. You might be told to wire or send the extra funds elsewhere, but their check will often bounce later.
Receiving checks from unknown sources or through mail theft should also put you on alert. Be careful with checks sent through suspicious emails or from companies you've never dealt with before.
Be aware of any urgency. Scammers often rush you to deposit the check or release products before your bank confirms the check is real. Stay calm and always wait for full confirmation from your bank before completing any sales or sending out goods.
Notice any spelling errors or unusual fonts on the check. Sloppy workmanship, mismatched logos, and wrong bank names are common in fraudulent checks.
Watch out for altered amounts or handwriting changes. Real business checks rarely have messy changes or corrections. If the payment amount looks odd or far too big, that can also be a warning.
If you receive paper checks but they are missing basic security features or come from unfamiliar banks, it’s smart to confirm these checks with your bank. Reporting suspicious activity right away helps protect your business from future scams.
Keeping your business safe from check fraud requires a mix of checks and balances, smart technology, and staff education. Using practical tools and following strong practices can help lower risks related to theft, fake checks, and business email compromise.
Setting up internal controls lets you catch check fraud earlier and block it before any major damage is done. Make sure that no single employee handles all steps of payments. Divide work so that one staff member isn’t responsible for writing, signing, and reconciling business checks.
Lock away blank checks in a secure place. Only trusted people should have access. Count and review checks regularly, watching for unusual or missing ones. Clear separation between who authorizes checks and who monitors the account activity can limit the chance of errors or fraud.
Use duplicate check logs. Every check written should match what is recorded. Any check that does not match your ledger should be flagged. If checkbooks go missing or checks are found to be altered, report it to your bank and file a police report right away.
For more details on liability and how the law protects businesses, see
business check fraud liability.
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Your bank can offer positive pay, a tool that compares the checks you write against those presented for payment. If anything does not match, the bank holds the check until you say it’s all right.
Use online banking alerts for all check activity. You can track when checks clear and get notified if something looks strange. This helps you spot fraud quickly, especially if someone tries to cash a check you did not write.
Cybersecurity is key. Make sure your software is up to date and that your systems are secure. Secure email accounts can lower the risk of business email compromise (BEC), which scammers use to get false payments approved or trick you into wiring funds.
Train workers to spot red flags, such as vendor names they don’t recognize or checks that appear altered or out of sequence. Simple visual checks can catch many fake checks. Employees should check for changes in paper quality, missing watermarks, or numbers that do not fit standard check formats.
Discuss what to do if an employee receives a request to change payment instructions by email or phone. Remind staff to confirm such changes directly using a number they already have, instead of numbers in the message. This step can stop BEC scams, which are a growing problem.
Regular meetings and reminders keep staff aware and ready to report problems. Keep up with FTC and local law enforcement updates on new scams. This awareness makes it easier to catch fraud before any money leaves your accounts.
Taking fast, clear action can reduce your financial loss and help prevent future check fraud. Knowing basic reporting steps and how to support fraud victims can make a big difference for your company and others.
If you suspect a check is fake, stop all processing of the questionable payment right away. Do not deposit or cash the check.
Secure the check somewhere safe so you do not accidentally use it. Contact your bank to alert them about the possible fraud. Give them the check details, including check number, issuer name, and any other facts you have.
Review recent transactions to see if other checks could be involved. Update your staff on what happened so they remain alert. For advice on keeping business accounts safe, look at some practical
check fraud protection tips.
Report the fraud to your local bank and request written confirmation of your report. This can help later if you need to show proof for legal or insurance reasons.
You should also report the fake check to the U.S. Postal Inspection Service if mail fraud is involved. File a complaint with the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, which helps investigators track check fraud.
Keep copies of all communications and reports you send. This includes emails, letters, and any police reports if the case becomes criminal.
Fake business checks can have specific warning signs, but you can reduce risk by taking simple verification steps and knowing how to respond if a problem arises. Various services and legal steps exist to help protect your business from loss or fraud.
Some obvious red flags? Cheap-feeling paper, missing or off-center logos, blurry text, and bank details that just don't seem right. If the name or address on the check isn't lining up with the business it's supposed to be from, that's a big warning sign. Watch out for checks that are oddly generous, tell you to hurry up and cash them, or come with a bunch of extra instructions—those are all reasons to be cautious.
Reach out to the issuing bank, but make sure you're using the contact info from their real website, not whatever's printed on the check itself. Ask if the account exists and whether there's enough money to cover the check. It doesn't hurt to call the company or person who supposedly wrote the check, either, just to double-check that it's legit.
Hold off on depositing or cashing it. Keep all your records, and definitely don't share your personal or banking info with whoever sent it. It's smart to let your bank know right away, and you can also report it to the police and the Federal Trade Commission.
Often, yes. Fake checks are usually made with flimsy paper, fuzzy or weirdly printed text, and sometimes even typos. Real checks tend to have security features like watermarks or tiny printed text—if those are missing, that's suspicious. Wrong bank logos, odd addresses, or account and routing numbers that look off are all pretty common with counterfeits.
If you end up cashing a fake check, your bank will probably ask you to pay back the money. You can (and should) report it to law enforcement and file a complaint with the Federal Trade Commission. If you know who gave you the fake check, they could actually face criminal fraud charges.
Yeah, there are actually services out there that look into things like bank account numbers and routing numbers. Some agencies and verification services—used by banks and businesses—can dig up a bit more info about who owns the account. If you’re ever unsure, it’s smart to stick with a reputable provider and maybe even call the bank listed on the check just to double-check.
If you’re looking for more guidance on business checks, please visit our
Business Check Ordering Guide for everything you need. You can also call us toll-free at 800-245-5775 and our teams of experts are always happy to help you with more specific questions. We look forward to helping you with all your business checking needs!
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