16 signs that check’s a fake

Of course you hope a fraudulent check never crosses your desk. But do you know all the signs that should send your radar up?
Quick: Name as many signs a check is suspicious as you can think of. Then compare your list to this one issued by The National Check Fraud Center:
- The check lacks perforations.
- The check number is either missing or does not change.
- The check number is low (e.g., 1001 up to 1500 on business checks and 101 up to 400 on personal checks). Scary stat: 90% of bad checks are written on accounts less than one-year old.
- The type of font used to print the customer’s name looks visibly different from the font used to print the address.
- Additions to the check, such as phone numbers, have been written by hand.
- The customer’s address is missing.
- The bank’s address is missing.
- Stains or discolorations are visible on the check that could possibly be caused by erasures or alterations.
- The Magnetic Ink Character Recognition (MICR) coding is shiny. Real magnetic ink is dull and non glossy in appearance.
- The MICR encoding at the bottom of the check doesn’t match the check number.
- The MICR numbers are missing.
- The MICR coding does not match the bank district and the routing symbol in the upper right-hand corner of the check.
- The name of the payee appears to have been printed by a typewriter. Most payroll, expenses, and dividend checks are printed via computer.
- The word VOID appears across the check.
- Notations appear in the memo section listing “load,” “payroll,” or “dividends.” Most legitimate companies have separate accounts for these functions, eliminating a need for such notations.
- The check has no authorized signature.
So how’d you do? Which did you miss? Did we miss any warning signs? Tell us here.
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by Personify Health
Further Reading
It’s not a coincidence that National Payroll Week is always the same week as Labor Day. This year, it’s September 5-9. In an...
A federal district court overturned the overtime rule that would have raised the minimum salary level for exempt employees on January 1, 20...
Confirming when federal legal and banking holidays will occur in 2024 can help you avoid surprises on paydays, tax deposit due dates and re...
Businesses that utilize the ACH network for banking should know that Nacha has amended its operating rules. A new format for the Company...
The IRS has explained how to handle taxes if a retirement plan participant doesn’t cash a distribution check and another check is issued....
A new joint employer rule is on the table. The DOL’s proposed standard could determine when your organization shares liability with a...