August 24, 2026
Check fraud happens when someone uses a check illegally to steal money or gain access to personal and financial information. According to America Saves, checks have sensitive details—including your full name, address, account number and routing number—giving fraudsters everything they need to commit financial identity theft.
Knowing how common check fraud scams work, recognizing the warning signs and taking simple precautions can help you better protect your account and personal information.
How Common Is Check Fraud?
LaTonya Hughes, La Cap’s BSA Fraud Manager, emphasizes that the fight against these schemes is non-stop.
“Yes, check fraud is reported more than any other fraud trend,” Hughes explained. “Scammers incorporate fake checks into various schemes.”
How Does a Fake Check Job Scam Work?
One prevalent scheme targeting job seekers follows a deceptive pattern:
- The Application: A member applies for an online job that appears legitimate, though no standard tax or onboarding paperwork is needed beyond a basic employment contract.
- The Check: The “employer” mails a check intended to cover home office supplies and initial payroll.
- The Urgent Demand: The scammer urges the member to deposit the check at once, buy supplies from a designated vendor and wire or send back the remaining balance via gift cards or money orders.
- The Aftermath: Days later, the check is returned as altered or fictitious. The scammer keeps the funds sent, leaving the member responsible for the full lost balance.
What Are the Warning Signs of Check Fraud?
Recognizing warning signs early can help keep your money safe. In a fake job opportunity or similar check scam, red flags may include:
- A job that requires little or no standard tax or onboarding paperwork.
- An “employer” sending you a check to cover supplies or initial payroll.
- Pressure to deposit a check immediately.
- Instructions to purchase supplies from a designated vendor.
- A request to send excess money back using gift cards or money orders.
As Hughes notes, “Legit employers require certain paperwork and never provide excess funds.”
How Can You Protect Yourself From Check Fraud?
Check fraud can disrupt your finances through unauthorized withdrawals, delayed bills, overdraft fees and frozen accounts. To safeguard your account, practice these simple habits:
- Mail checks directly inside a U.S. Post Office rather than leaving them in unsecured mailboxes overnight.
- Review your account activity daily through mobile or online banking.
- Set up real-time transaction alerts.
- Exercise extreme caution with unexpected checks tied to job offers, prizes or urgent money transfers.
- Contact La Cap immediately if a transaction feels off.
How La Cap Protects You
The Bank Secrecy Act (BSA) requires financial institutions to watch and report suspicious activity, aiding law enforcement in preventing money laundering, terrorist financing and financial fraud.
At La Cap, our BSA team works alongside our Red Flag Committee on the front lines to defend member funds and protect sensitive information. The committee actively oversees the Credit Union’s Identity Theft Program to detect, prevent and mitigate fraud.
“We discuss fraud trends impacting the financial industry and discuss preventative measures, while also reviewing current processes to identify any weaknesses and enhance controls,” Hughes said.
Frequently Asked Questions About Check Fraud
What is check fraud?
Check fraud happens when someone uses a check illegally to steal money or gain access to personal and financial information. Checks can contain sensitive details such as your full name, address, account number and routing number.
What are common warning signs of a fake check scam?
Warning signs can include receiving an unexpected check, being pressured to deposit it quickly, being told to purchase items from a designated vendor or being asked to send excess funds back through gift cards or money orders.
How can I protect my account from check fraud?
Mail checks directly inside a U.S. Post Office, review your account activity daily, set up real-time transaction alerts and exercise extreme caution with unexpected checks tied to job offers, prizes or urgent money transfers.
What should I do if I notice a suspicious transaction?
Contact La Cap immediately if a transaction or account activity feels suspicious.