Mobile check deposit has modernized banking by allowing users to deposit checks conveniently through their smartphones, eliminating the need for physical bank visits. However, this convenience has also led to an increase in fraudulent schemes targeting mobile banking users.
According to the 2024 AFP® Payments Fraud and Control Survey Report, 65% of organizations reported check fraud activity, showing the importance of staying informed. In this post, we’ll explain how mobile deposit check scams work with practical examples, tips to avoid them, and steps to take if you become a victim.
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What Are Mobile Deposit Check Scams?
Mobile deposit check scams happen when criminals use fake checks to attack mobile banking apps. These scammers often use tricks to make their schemes believable, convincing victims to deposit fake checks and send money back, usually through wire transfers or payment apps.
These scams depend on:
- Delays in bank verification: Scammers take advantage of the time banks need to confirm if a check is valid, completing the scam before the check is flagged as fake.
- Emotional manipulation: Fraudsters create urgency or tell convincing stories to pressure victims into acting quickly without questioning the legitimacy of the check.
What Are the Common Types of Mobile Deposit Check Scams?
These scams often start with convincing stories delivered through emails, social media, or scam calls. Victims are manipulated into acting quickly, trusting the scammer’s claims, and sharing personal information or money before verifying the situation.
1. Fake Mobile Deposit Check Scams
Scammers send fake checks to victims, often pretending to buy something online. They may claim they “accidentally overpaid” and ask the victim to deposit the check through their mobile banking app, then return the extra money. When the bank discovers the check is fake—usually days later—it bounces, leaving the victim responsible for the lost money.
- Example: A scammer posed as a buyer for a used phone listed online. They sent a check for $800, claiming it was “by mistake” since the phone only cost $500. The victim deposited the check and refunded the $300 overpayment via a money transfer app. A week later, the bank notified the victim that the check was fake, leaving them $300 short.
2. Check Deposit Scams Involving Strangers
These scams involve strangers contacting victims through job ads or social media, offering fake job opportunities, or claiming to need help with a financial “emergency.” Victims are sent fraudulent checks and told to deposit them, then send the money back using gift cards, wire transfers, or payment apps. When the bank flags the check as fake, the victim loses the money.
- Example: A college student was offered a work-from-home job as a “payment processor.” The scammer sent a $2,000 check for “client payments” and instructed the student to deposit it and send $1,500 via a money transfer app. Days later, the bank reported the check as fake, leaving the student with losses.
3. Digital Check Scams
Fraudsters use fake websites, emails, or text messages to convince victims. They often claim to offer loans, prizes, or rewards, then request the victim’s bank login details or convince them to deposit a fraudulent check via a mobile app. After the deposit, the victim is told to send back a portion of the money, but the check is later flagged as fake.
- Example: A victim received a text message saying they won a $1,000 prize. The scammer sent a $2,000 check and asked the victim to “return $1,000 for taxes” via a wire transfer. Days later, the bank reversed the deposit, revealing the check was fake, and the victim lost $1,000.
Discover the 8 most common examples of fraud in digital wallets and how to protect your money.
How to Avoid Mobile Deposit Check Scams? 7 Safety Tips
Mobile deposit makes banking easier, but scammers often take advantage of its convenience.
Here are seven practical tips to stay safe when using mobile deposit:
1. Avoid Sending Money to Strangers
If someone asks you to deposit a check and send them money through gift cards, money transfers, or cryptocurrency, it’s probably a scam. Fraudulent checks often look real but will eventually bounce, leaving you responsible for the money you sent.
- Tip: Never trust anyone asking for gift card codes as payment; this is a clear warning sign.
2. Verify the Source of the Check
Always know who is giving you the check and confirm the issuing bank is legitimate. Fraudsters typically use fake cashier’s checks or overpayment schemes to trick victims.
- Tip: Contact the issuing bank directly to confirm the check is valid before depositing it.
3. Be Cautious with Online Offers
Fake job offers, prizes, or overpayment schemes frequently come with checks that exceed agreed amounts. If a deal seems suspicious or “too good to be true,” avoid depositing the check.
- Tip: Decline any request to “refund” overpayments. Genuine payments don’t work this way.
4. Use Secure Networks for Mobile Banking
Avoid using public Wi-Fi for mobile banking, as it can expose sensitive information to hackers. Use secure networks or cellular data instead, and always log out after completing your transactions.
- Tip: Always log out of your mobile banking app after completing transactions for added security.
5. Wait Before Spending Deposited Funds
Mobile deposits may show funds as available quickly, but banks need several days to verify checks. If a check is fake, the deposit will be reversed, and you’ll be liable for any withdrawn money.
- Tip: Avoid using deposited funds until the bank confirms the check is valid.
6. Monitor Your Accounts Regularly
Check your account frequently to identify unauthorized transactions or unusual deposits. Suspicious activity may indicate fraud or a compromised account, so report anything unusual immediately to secure your funds.
- Tip: Set up account alerts to be notified of any unusual activity immediately.
7. Learn to Identify Fake Checks
Examine checks for signs of fraud, such as blurry text, mismatched fonts, or missing security features like watermarks. If something looks off, take the check to your bank instead of using a mobile deposit.
- Tip: If you’re unsure about a check, take it to your bank instead of depositing it through your mobile app.
Learn how credit card fraud detection techniques work to help you avoid becoming a victim of this type of fraud.
Have questions about dealing with scams? Contact us for support.
How to Respond to a Mobile Deposit Scam?
If you suspect you’ve been tricked by a mobile deposit scam, acting quickly can minimize losses and increase your chances of recovering lost funds. Here’s what to do step by step:
1. Contact Your Bank Immediately
Contact your bank immediately if you suspect you’ve deposited a fake check or shared sensitive information. Bank representatives can confirm if the check was fraudulent, block your account, place a fraud alert, or reverse the transaction if caught in time.
2. Report the Scam to the Right Authorities
Reporting the scam helps stop scammers and protect others from similar digital check scams. Reach out to these key organizations:
- Federal Trade Commission (FTC): File a fraud report at reportfraud.ftc.gov, including screenshots or emails related to the scam.
- U.S. Postal Inspection Service (USPIS): If the scam involves mail, submit a complaint online at uspis.gov or by calling 1-877-876-2455.
- Internet Crime Complaint Center (IC3): Report scams involving online communication or transactions at ic3.gov.
- Better Business Bureau (BBB): Use the Scam Tracker to share your experience and warn others.
- State Attorney General: File a complaint for local support and consumer protection.
3. Reach Out to Companies or Services Used in the Scam
If scams involve gift cards, wire transfers, or payment platforms, contact those companies immediately. Offer details about the fraudulent transaction so they can block further applications or take action to recover funds.
4. Monitor and Secure Your Accounts
Monitor your bank accounts and credit reports closely for suspicious activity. Setting up account alerts can help you catch unauthorized transactions early. You can also use credit monitoring services like Experian or TransUnion to add an extra layer of security.
Mobile Deposit Check Fraud Prevention Backed by CDN
Mobile deposit check scams are becoming more complex, often involving stolen checks or personal information. The U.S. Department of the Treasury has identified check fraud linked to mail theft as a growing threat, with criminals selling stolen data on platforms like Telegram or dark net marketplaces.
At Cryptoscam Defense Network (CDN), we provide advanced tools and strategies to help detect and prevent these scams. Our resources are designed to protect users and businesses from new threats tied to mobile deposits and digital check fraud.
We Want to Hear From You!
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Photos via Freepik.
