Check Fraud is Prevalent

Check fraud is a growing concern for businesses of all sizes, and staying one step ahead is critical. At NVB, we provide practical guidance, industry-leading tools, and trusted support so you can recognize warning signs, implement controls, and protect your business from costly losses.

What is Check Fraud?

Check fraud can take many forms.
Often it involves an attempt to pay for products or services using a stolen, altered, or counterfeit check.

Other cases involve writing a check to a business or individual with knowledge that there are not enough funds in the account to cover the amount. These schemes exploit a federal law that requires banks to make funds from deposited checks available to account holders in just a few days. But it can take weeks to identify a fraudulent check. At that point, it’s too late — the money is gone.

What to watch for
Here are a few common check fraud scenarios.

Lottery or inheritance schemes

A scammer contacts you saying you’ve won a lottery, or other prize, or received an inheritance. They send a fake cashier’s check for a large amount and ask you to pay taxes and fees on the lottery winnings or inheritance.

Overpayment scams

Someone may pretend to buy something from you online and then send you a check for more than the settlement amount. The buyer then asks for the overpayment back. Later, their check is rejected.

Mystery shopping schemes

A person contacts you claiming to be organizing mystery shoppers for a company that sells gift cards or money orders. They send you a check to deposit in your personal account, and then ask you to transfer some of the money elsewhere or to purchase gift cards — making you an accomplice to the fraud. This person disappears with your money.

[/highlight-line]

You’re asked to buy gift cards or send a money order.

Fraudsters often ask their victims to purchase gift cards and then read the PINs to them. Others ask to be sent a money order. Doing either is like sending cash, and it’s almost impossible to get your money back.

You’re being asked to pay to receive a prize.

A prize isn’t free if you’re being asked to pay for it in any way.

You’re paid with a check for more than you’re owed.

Don’t accept it.

You’re asked to send money overseas.

It’s difficult to track down scammers in another country.

You’re told you won a sweepstakes you never entered.

Be suspicious of being told you won a contest you never entered.

You’re pressured to send money right away.

Why the rush? The scammers want you to send money before your bank bounces the check.

Here are a few best practices.

Limit check writing by using your NVB Debit Card, Online Bill Pay or ACH payments for business customers.

Don’t accept a check from someone you don’t know.

Don’t send or wire money to strangers, either individuals or companies.

Don’t cash a check you’re not expecting.

Verify if a cashier’s check is valid before depositing it.

Monitor your account daily using the NVB Mobile app or online banking.

Enroll in Real Time Alerts.

Protect your business from check fraud.

Follow these steps to limit risk and prevent financial loss:

Safeguard your check stock.

Limit check writing by using:

–NVB Debit Card
–NVB Credit Card
–ACH & Wire Payments
–NVB Business Bill Pay
–NVB Positive Pay

Use NVB Real Time Alerts.

Monitor your account activity daily via Online or Mobile Banking.

Check Fraud is Prevalent

What is Check Fraud?

Check Scams

What are some signs of check fraud?

How can I avoid check fraud?

Protect your business from check fraud.

Follow these steps to limit risk and prevent financial loss:

Support

How May We Help You?