Understanding Counterfeit Checks

Counterfeit checks pose a significant threat in today's financial landscape. This article aims to provide essential information on identifying counterfeit checks, understanding the consequences of dealing with them, reporting procedures, and effective strategies to prevent counterfeit check scams.

How to Identify Counterfeit Checks

Counterfeit checks, including counterfeit cashier's checks, are a prevalent form of financial fraud that can lead to substantial losses if not identified promptly. Here are some key security features, signs of tampering, and tips on assessing the check's paper quality to help you spot counterfeit checks.

Signs of Tampering

  • Altered Numbers or Amounts

    Look for signs of erasure or alteration in the check's numeric values.

  • Misspellings or Missing Fonts

    Pay attention to strange printed text, such as misspelled words or unusual fonts.

  • Smudges or Stains

    Look for signs of tampering, such as smudges, stains, or visible corrections.

Counterfeit Check Protection with TowneBank Business Online Banking

Positive Pay with Payee Match

An online service that compares the payee name on a check to the payee name in the bank's issued check file to prevent fraudulent check activity.


Bill Pay

Pay bills online to avoid paper checks and the increased fraud risk associated with them.

ACH Positive Pay

Review and approve payments before they are finalized for ACH transfers and check transactions.



Electronic Payments

Use electronic payments as often as possible for increased security and protection.



Be sure to regularly review copies of your checks and your statements as they become available in Business Online Banking. Contact your local treasury advisor for more information on how these services can protect you and your business from check fraud.

Consequences of Dealing with Counterfeit Checks

Handling counterfeit checks can have severe legal and financial repercussions. Engaging in activities related to counterfeit checks, such as knowingly depositing or cashing them, constitutes fraud, a serious offense with potential criminal charges.

In addition to legal consequences, dealing with counterfeit checks poses significant financial risks. If a counterfeit check is deposited or cashed, the financial institution may hold the depositor accountable for the full amount upon discovering the fraud. This can result in substantial financial losses for individuals or businesses.

Protecting your personal information is crucial when it comes to counterfeit checks. Scammers often obtain personal details from unsuspecting individuals and use them to create counterfeit checks in their names, leading to identity theft and further financial fraud. Safeguard your personal information and exercise caution when sharing sensitive details, especially with unfamiliar individuals or organizations.

Reporting Counterfeit Checks

If you suspect you have received a counterfeit check, take immediate action to protect yourself and prevent further financial harm. Follow these steps:

Contact Local Law Enforcement

Report the scam to local law enforcement, the Federal Trade Commission (FTC), and your state's Attorney General's office.  Reporting helps authorities track down scammers and prevent further fraud.Report the incident to your local law enforcement agency. They have the expertise and resources to investigate fraud cases and take appropriate action. Provide them with all relevant details, including information about the sender and any suspicious activity surrounding the check.

Inform Your Local Banker

Contact your local banker or financial institution as soon as possible. They will guide you on the necessary steps, such as closing your account if necessary, and protecting your funds. Be prepared to provide details of the counterfeit check, including the amount, date, and any other relevant information.

Reporting counterfeit checks is crucial not only for your protection but also for the safety of others who may fall victim to similar scams. By promptly reporting these incidents, you assist law enforcement agencies and financial institutions in combating fraud and protecting the community.

Preventing Counterfeit Check Scams

When engaging in transactions, whether online or in person, follow these key tips for safe transactions:

  • Verify Legitimacy: Always verify the legitimacy of the person or organization you are dealing with. Conduct thorough research, check for reviews or ratings, and don't hesitate to ask for identification or proof of authenticity.
  • Use Secure Payment Methods: Opt for electronic transfers, credit cards, or reputable payment platforms that offer buyer protection. These methods provide an added layer of security and reduce the risk of counterfeit checks or fraudulent activities.

At TowneBank, we prioritize the safety and security of our members. By following these preventative measures and staying informed, you can safeguard your finances and protect yourself from falling victim to counterfeit check scams.

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The information provided is not intended to be legal, tax, or financial advice or recommendations for any specific individual, business, or circumstance. TowneBank cannot guarantee that it is accurate, up to date, or appropriate for your situation. Financial calculators are provided for illustrative purposes only. You are encouraged to consult with a qualified attorney or financial advisor to understand how the law applies to your particular circumstances or for financial information specific to your personal or business situation.

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