Don’t Get Bounced: Avoid Fake Check Scams

August 4, 2026

By K-Staff

Fraud, Insighter

Fake checks are one of the most common instruments used to defraud consumers – and in 2025, New Mexico had the 7^th highest amount of reported fake check scams per capita in the United States, with losses approaching $1 million.

Before you deposit a check you weren’t expecting or wire funds to an unknown recipient, here’s what you should know:

Types of Fake Check Scams

Fake check scams have many variations. They may look like someone buying something you advertised for sale, or a work-from-home proposition, or an advance on a sweepstakes prize – all generally involving checks or money orders for amounts greater than intended, with directions to send back the excess funds via wire transfer.

These scams work because the fake checks look like real checks, using the names and addresses of legitimate financial institutions. Sometimes they are real checks, belonging to someone whose identity has been stolen – it can take weeks before banks notice that these checks aren’t legitimate.

Mystery Shopper Scams: These scams have variable forms, but mostly center around scammers asking you to evaluate retailers that sell gift cards, money orders, or wire transfer services, using a check they provide to deposit and send money. Generally, the mystery shopper program is a hoax, and once the money is sent, they disappear.
Personal Assistant Scams: Another work-from-home style scam, fraudsters put out job listing for personal assistants, and then send a check with instructions to buy gift cards with the money and send back the gift card PINs. Once the gift cards are sent, they use the money, and leave you holding the bag after the bank determines the check you deposited was a fake.
Sweepstakes / Lottery Scams: A classic of the genre – check recipients are told they won a lottery, sometimes in a foreign country, and that in order to claim their winnings, they must first pay taxes and fees. The scammer sends a fake cashier’s check with instructions to cash and wire the funds back to cover the so-called taxes and fees, and the lottery winner is left waiting for a prize that never arrives.
Online Auction / Classified Listing / Over-Payments: Scammers may sometimes use an online auction or classified listing, offering to purchase an item for sale, and then send a cashier’s check for an amount greater than the asking price. Once this is mentioned, they ask you to quickly return the extra funds – they are hoping you cash or deposit their check and send back legitimate money before you realize the check they provided is a fake.

Tips to Prevent Fake Check Scams

Don’t assume that if a check has “cleared” it is legitimate. By federal law, banks have to make deposited funds available quickly – but just because you can access money from a deposited check doesn’t mean the check is legitimate, even if it’s a cashier’s check or money order. It may take some time for financial institutions to discover fake checks, and you can be held responsible for that money. If you have any questions about whether a check is legitimate, talk to your financial institution. Provide information on the source of the check, why it was sent to you, and whether you are being asked to wire money back.
Don’t use money from a check deposit to send gift cards, money orders, cryptocurrency, or wire transfers to anyone who asks you to do so. Scammers love to get paid in these formats because it’s almost impossible to take it back – once you’ve sent your money through these channels, they can disappear and your recourse for retrieving the money is limited.
Don’t accept a check for more than your selling price. If someone gives you a check for a greater amount than you agreed upon for a sale, and then asks you to send them the difference back, it’s a red flag that you may be dealing with a scam artist.
Verify the requestor before you wire or issue a check. If you have any questions on the legitimacy of a check, contact the issuing financial institution or company directly using verified communication channels – not the contact details provided with the check.

What to Do If You Are Scammed

Contact your financial institution right away – you can reach Kirtland CU’s Member Contact Center toll-free at (800) 880-5328. We can guide you through steps to protect your account and potentially reverse transactions, but only if we receive immediate notice.
File a police report. Report any scam to your local law enforcement – this can help with other investigations they may be participating in, and can also potentially prevent others from falling victim to the same scams.
Alert the Federal Trade Commission and Internet Crime Complaint Center (IC3) to help authorities track and combat these scams.
If you received your check by mail, contact the U.S. Postal Inspection Service.
Review your credit report for any unauthorized activity or accounts opened in your name. It may also be prudent to place a fraud alert on your credit file to prevent any additional attempts at fraudulent activity.