Be weary of fraudulent checks

If you receive a check from someone you don’t personally know – for a sale, job offer, rental deposit, or “overpayment” of any kind – stop and verify before you deposit it. Check Fraud is common, costly, and the loss falls on you, not the credit union.

How these scams usually work:

• You’re offered a job, sold an item, or sent a “refund” or deposit by someone you’ve never met in person.
• They send a check – often for more than expected – and ask you to deposit it and send back the difference, or send funds via wire, gift cards, or cryptocurrency.
• The check looks completely legitimate. It may even show as “available” in your account within a day or two.

Days or weeks later, the check is discovered to be fraudulent and reversed. You are held responsible for the full amount, including anything you sent to the fraudster.

A critical thing most people don’t know: Funds showing as “available” in your account does not guarantee that a check has cleared. Credit Unions and Banks are required to make funds available quickly, but verifying a check’s legitimacy can take much longer. “Available” is not the same as “confirmed real”.

Red Flags to watch for:

• You receive a check from someone you’ve never met in person.
• You’re asked to send money back – by wire, gift card, or crypto – after depositing a check.
• The payment is for more than what was agreed, described as an “accidental overpayment”.
• You’re discouraged from asking questions and/or pressured to act quickly.
• The check arrives by email as an image or PDF with instructions to print and deposit, or to mobile deposit directly from the email.
• The person or company can’t be reached by any means other than the one they contacted you through.

What to do:

• Don’t deposit checks from anyone you don’t personally know and trust.
• Never send money, gift cards, or crypto based on funds from a check – regardless of how long it has been “available” in your account.
• If you want to verify a check, call the issuing bank directly using a phone number that you look up yourself – never a number printed on the check or provided by the sender.
• If something feels off, it usually is. Ask before you act.

If you believe you’ve received a fraudulent check or been targeted by this kind of scam, contact our Member Service Center immediately. We are here to help.