Sadly, mobile banking and check fraud are on the rise, as scammers come up with new ways to try to trick people out of their money. One such tactic is mobile deposit scams, which involves your unwittingly depositing a fake check through a mobile deposit. The scammer either convinces you to reveal personal information or to send them money from your account. By the time you realize what is happening, your money is gone or your sensitive information could be used for ill intent.
To protect yourself, read on and learn:
- What happens when you mobile-deposit a fake check
- What are the common scams currently circulating
- What you can do to avoid being ripped off by a fake mobile deposit check.
What Happens if You Mobile-Deposit a Fake Check?
Before talking about fake checks, it’s important to first define what a mobile deposit is.
- It’s a type of deposit can be done through your bank or credit union’s app.
- You snap a photo of a paper check with your mobile device, upload it plus information about its amount and which deposit you want it submitted to.
- Once the bank processes and approves it, the check will be deposited in your checking account.
With mobile deposit scams, however, one of two things might happen:
- The scammer might convince you to deposit a fake check, often for more than the amount you were told would arrive. Then the fraudster might ask you to return the “extra” amount they said they accidentally sent you (which you do, not knowing the check they sent is bogus).
- The scammer asks for your personal information so they can deposit money into your bank account (which they’ll never do).
If you deposit a fake check, whether through your bank’s mobile app or another means, there are several scenarios that can unfold.
- The bank may deny the deposit and declare the check is fake.
- The bank may clear the check, and there is a deposit in your account. However, that doesn’t mean the bank won’t come back around and discover the check is fake. In this case, the check bounces, and you’re responsible for paying the amount back to the bank.
In either case, you could be held liable for the fake check and any extra costs that the bank may have incurred because of this bank fraud. The authorities may even be involved if there is a criminal investigation for the fake check.
Tips for Spotting a Fake Mobile-Deposit Check
There are several ways you can use to spot a fake check or attempt to verify a check, such as:
- Considering the sender: If you’re unsure who sent you the check, it’s best to double-check why you received the check. If, say, it’s from your bank or a company you do business with, you can contact their listed business number and find out why it was sent vs. just depositing the check.
- Looking at the check amount: Fraudulent checks typically are for an amount that’s much larger than the payment you expect to receive. The idea is to get you to return the extra amount. For checks that have seemingly a larger amount than expected, contact the sender to correct it, which they should do if they are legitimate. (You may hear the practice of intentionally writing checks against insufficient funds referred to as check kiting.)
- Check the financial institution: Fake checks may look legitimate but have a bank or credit union name that doesn’t exist. You can do a simple online search to find the name of the financial institution, or contact the FDIC to determine if the bank is real.
- Determine the quality of the check: Look at the check to see if there are any watermarks or other indicators of security features typical of a real check. Feel the paper as well, as real checks are typically printed on thicker paper than bogus ones.
4 Mobile-Deposit Scams to Avoid
Unfortunately, there are many tactics that scammers try to use to get you to part with your money. Four common mobile check-deposit scams include fake jobs, bogus contests, fraudulent sales, and dating scams.
Fake Jobs
Here’s how this typically goes:
- You answer an advertisement for a job, like a mystery shopper, personal shopper, or some other form of employment.
- You apply, are hired, and are sent a check — an upfront payment for work, for example — for a larger amount than you were promised and are asked to send the excess amount back.
- You deposit the check, send the excess back, and then find out that the check you were sent has bounced. You are liable for that “excess” you sent back.
- Or you’re asked to review, say, a company that sells money orders or wire transfer services. You receive a check from the scammer to be used to purchase money orders and/or send a wire transfer.
- You deposit the check, make the purchase as directed, and send a money order or wire transfer to someone else’s savings account. Then, guess what? The check winds up bouncing, and you’re out of cash.
Fake Contests
This scam usually unfolds as follows:
- Someone posing as a representative of a company or lottery contacts you to let you know that you’ve won a contest.
- You may not remember entering the contest (because, as it turns out, you didn’t), but you give the rep some personal details so they can send the check.
- Once you receive the check, the scammer tells you they sent too much money and asks that you send the excess amount back to them. You deposit the check and return the overage.
- The check turns out to be fake (how long for mobile deposit or in-person checks to bounce? It can be a couple of days or longer). That means the alleged excess that you returned is your cash that’s now disappeared.
Auction or Online Marketplaces
Selling your stuff on websites or in-person can lead to scams:
- You’re selling some items on an online marketplace (say, eBay, Craigslist, or Facebook Marketplace), and the scammer purchases it from you.
- The scammer gives you a check for an amount that’s higher than your item’s listed price and asks you for the overpayment back. You send the money back, and later find out that the check is fake. Meanwhile, the scam has made off with your money.
Dating Scams
These types of scams can take a long time to unfold:
- The scammer creates a fake profile on a dating app or social media and strikes up a conversation.
- Over time, this person may win your trust and then face an emergency or some other situation for which they need to borrow money. (Maybe they need funds to buy a plane ticket to eventually visit you.)
- You agree to lend them some money, which they say they will soon return via check. Yes, you receive the check from them, but it ends up being a fake one, and the money you “loaned” the fraudster is gone.
What to Do if You Receive a Fake Mobile Deposit From a Stranger
If you believe you’ve received a fake check and are unsure whether to deposit it via your mobile app, pause.
- Double-check with the sender if possible whether the payment is legitimate.
- If you were expecting a payment and they send more than the anticipated amount, ask the sender to void the check and send you the correct amount. If there’s no response or a refusal, don’t deposit it.
- Don’t draw against the potentially fake check until you are sure that it’s fully cleared. Don’t assume that just because the amount shows up immediately in your bank account that you can go ahead and spend it.
- You can also contact the Federal Trade Commission (FTC) if you believe someone is targeting you for a fake mobile deposit scam.
The Takeaway
You can’t control what scammers do, but you can control how you respond to them. By learning how to spot signs of fraud, including mobile deposit fake checks, you can protect yourself from romance, job, and other ploys. By educating yourself and being wary, you may prevent someone from taking advantage of you and your money.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
This article is not intended to be legal advice. Please consult an attorney for advice.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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Help! I Got Scammed! What Do I Do Now?
You might associate scams with far-fetched ruses about foreign “princes” or emails, full of misspellings, that claim to be from your bank. And you might think you would never fall for those ploys. Scams, however, have grown more convincing over time, as evidenced by a growing amount of consumer dollars lost to fraud each year. And no, internet-savvy younger folk aren’t immune. In fact, according to data collated by the Federal Trade Commission (FTC), those between the ages of 30 and 39 were the most likely to get scammed in 2023.
Fortunately, there are ways to recover from the financially and emotionally draining experience of being scammed — and to avoid falling victim to scams in the first place. Read on for wise advice on how to rebound from being scammed, plus what to look out for so you don’t become a future scam statistic.
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The short answer: Lots. The FTC states they received fraud reports from 2.4 million consumers in 2022 — and chances are not everyone who was scammed followed through on filing a report about it. (If you have been scammed, though, you should; the FTC’s data can help law enforcement build cases against scammers and stop the problem from happening to others.)
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Scams come in a wide variety of shapes, sizes, and styles, but here are some of the most common scams reported in the US.
Imposter Scams
In imposter scams, the fraudster acts as if they’re a person or business entity you already know and trust to swindle you out of your money. This is by far the most common type of scam in the US, and it can be perpetrated in a variety of different ways.
- You might get an email that looks like it’s from your bank (but is not) and prompts you to enter your login information. This however allows the fraudster to get access to your login credentials, which they can then use to drain your checking account.
- Imposter scams also include romance scams, wherein someone often woos you online from afar and asks you to wire them money to help them through some emergency.
- Scammers might even impersonate someone you already know, like a friend or relative. They could hack someone’s online accounts and then send messages that they need money for an emergency, help buying gift cards or some other scam.
(Learn more: Personal Loan Calculator)
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As their name implies, prize and sweepstake scams trick consumers into believing they’ve won something. They take a person’s sensitive information under the pretense of giving them the prize, only to wrest away their hard-earned money.
fizkes/istockphoto
It’s pretty cruel to target people who are looking for job opportunities, but scammers can do just that. You might find their ads in the exact same places you’d find legitimate employment opportunities, but instead of offering a position, they’re really in the business of getting your private information — and using it to steal from you.
Many people have fallen victim to overpayment scams this way, in which a person is told they are hired and is sent money to buy home officer equipment. However, the check was for a higher amount than needed, and the unwitting scam victim sends back the overage. By then, the funds they received from their supposed new employer? That check bounces ultimately, and they are out of cash and still without a job.
Elena Katkova / Istockphoto
A smart investment can be a great way to make money… but when scammers use the guise of an investment opportunity to get your cash up front, the return never comes. According to the FTC, among the most common investment scams are those related to financial markets, real estate, or precious metals and coins.
Be extremely careful about individuals or companies you invest with. Some fraudsters create very official-looking websites that can fool people out of a lot of their money. These ”get rich quick” schemes can sound very believable.
Nattakorn Maneerat/istockphoto
If you’ve been scammed, don’t panic: You have options. And in many cases, you may be able to recoup some or all of your lost funds. Here’s advice on how to recover from being scammed.
Tell Your Bank That You Have Been Scammed
Here’s what to do after being scammed: If a fraudster got hold of your bank account information, let your bank know ASAP. After all, the sooner they can change your checking and savings account numbers, the sooner you can stop any theft. While FDIC insurance does not cover money lost due to theft, fraud, or scams, many banks will reimburse you money you’ve lost in a fraudulent transaction. It’s not a guarantee, but it’s definitely worth a try.
Request a New Debit or Credit Card
If a scammer got hold of your debit card or credit card information, immediately call the issuer to report that the card was stolen so they can hook you up with a brand new card and account number. Again, many credit card issuers will refund you for charges that were unauthorized or fraudulent transactions, so it’s critical to reach out to them pronto.
Remember the Details
If you suspect you’ve been the victim of a scam, you should immediately write down everything you can remember about the interaction: the details of how the scam was carried out, how much money or which pieces of information were stolen, the time of day, the payment and communication methods, and where you were. All of these details could help law enforcement catch the perpetrator and ensure your case is solid if it gets taken to court.
File a Complaint With the FTC
As discussed above, another step to take after being scammed is filing a complaint with the FTC. This can help track down and stop fraudsters. The FTC can also provide you with valuable information to help you protect yourself from future scams, too.
AnnaStills/istockphoto
There are steps you can take to help ensure you don’t become victimized by a scam for a second time. These can also be good moves to make to avoid being scammed in the first place.
Use Two-Factor Authentication
Chances are, you’re already familiar with two-factor authentication: It’s the process where a website or platform verifies your identity with both a password and a second form of authentication, like a code texted to your cell phone or using facial recognition. Use these tools to secure as many of your accounts as you can.
Reset Your Passwords
Whether or not you’ve been scammed in the recent past, it’s always worthwhile to reset your passwords regularly.
- Use strong, distinct passwords for each account you have. No reusing!
- To keep all your accounts straight, you may want to consider utilizing a password manager, which can also help you generate stronger passwords and remind you to change your passwords from time to time.
Ridofranz/istockphoto
If you get an email or phone call that promises you a lot of money very quickly — or says there’s a problem you have to pay to fix very quickly — be suspicious. If you’re not totally sure you’re dealing with the person or entity who says they’re on the other side of the interaction, hang up or click delete and reach out yourself (say, directly to your bank, Apple, or whatever company is allegedly contacting you).
It’s also worth looking for tiny typos in email addresses or slightly “off” logos. In all cases, be very wary before you offer sensitive information over email or the phone. It’s highly unlikely you will be asked to “verify your account immediately” by text message, for instance.
Recognize Sometimes Things May Be Too Good to Be True
If someone calls you promising you a prize of thousands of dollars as soon as you provide your Social Security number or says they have the investment of a lifetime if you just cough up $1,000 to start, think twice. If something sounds too good to be true, there’s a good chance it’s just that.
Order Credit Reports
Keeping an eye on your credit report is one of the best ways to stay ahead of any fraud you may fall victim to without otherwise knowing. You’re entitled to one free credit report each year from each of the big three credit bureaus via annualcreditreport.com.
You can also sign up for ongoing credit monitoring with a variety of service providers, though this may be a paid service. You can also consider whether you want to activate a fraud alert or security freeze on your credit files with the credit bureaus. This can help prevent new accounts from being opened without your permission.
Bubball/istockphoto
Scams are getting more sophisticated these days, which can mean they can be harder to detect and avoid. Popular ploys are romance and job opportunity scams. Staying vigilant and immediately reporting any fraudulent transactions can help minimize your losses — and possibly recoup lost funds.
Check with your financial institution to see what tools they offer to help you monitor and protect your accounts.
This article originally appeared on SoFi.com and was syndicated by MediaFeed.org
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Featured Image Credit: insta_photos/istockphoto.
