Fake Check Scams Online

IAA Credit Union has observed an increase in fake check scams targeting teenagers online. In response, we want to provide parents and guardians with information they can share with their teens to protect them from falling victim to these scams.
Scammers are specifically targeting teens and young adults online, claiming to offer quick money-making opportunities. In a fake check scam, the scammer, often a stranger, sends a counterfeit check under the pretense of buying items such as the persons photos, artwork, or other items. They instruct the recipient to deposit the check into their account and then ask for some of the money back. IAACU has seen an increase in these fake checks through our Remote Deposit Capture (RDC) feature.
Scammers use various tactics, such as posing as government officials, businesses, utilities, tech companies, charities, or fabricating family emergencies. They may promise easy money-making opportunities or urge immediate action, always with the aim of extracting money from their victims. No matter what they say, they’ll pressure you to act immediately, and of course, pay them money.
How do you spot a scam? Listen to how someone tells you to pay. If someone tells you:
- “Pay us by putting money on a gift card and then give us the number on the back.” – That’s a scam.
- “We’ll send you a check, deposit the check, and then send us the money.” – That’s a scam. That check will later turn out to be fake and you will be on the hook for the money.
- “You have to pay us by sending money through a money transfer company.” – That’s a scam.
- “Go to a store with a cryptocurrency ATM, put your money in to buy cryptocurrency, and use this QR code to send it to this address.” – That’s a scam.
How To Avoid a Fake Check Scam:
- Never use money from a check to send gift cards, money orders, cryptocurrency, or to wire money to anyone who asks you to. Many scammers demand that you buy gift cards and send them the PIN numbers, buy cryptocurrency and transfer it to them, or send money through a wire transfer service. Once you do, it's like you gave them cash. It’s impossible to get it back.
- Toss offers that ask you to pay for a prize. If it’s free, you shouldn’t have to pay to get it. Only scammers will ask you to pay to collect a “free” prize.
- Don’t accept a check for more than the selling price. You can bet it’s a scam.
Originally posted by the FTC. Adapted by IAACU.