Mobile banking has made life more convenient, but unfortunately, scammers have found new ways to exploit this technology. One common scheme is mobile deposit check fraud, where criminals trick victims into depositing a fake check using their banking app, then pressure them to send most of the funds back or they promise large returns on investments, such as Bitcoin, and ask that you electronically send funds back to them to do the investment.
These scams often start online. Fraudsters may reach out through social media, email, or text messages, posing as potential employers, lenders, or investors. Sometimes they even claim to have “overpaid” you and ask for the difference back. When the fake check eventually bounces, the victim is left responsible for the loss.
Common Tactics in Mobile Deposit Fraud
- Criminals send victims fraudulent checks and ask them to deposit them via their mobile banking app.
- Victims are told to send money back through wire transfer, gift cards, Cash App/Venmo or cashier’s checks.
- Scammers create urgency, insisting the victim act quickly before the check is flagged. Slow down, pause, ask yourself if this feels right or are you being pressured. If something feels off, discontinue the conversation with the person. Do not send any money to them.
STOP AND THINK – How to Protect Yourself
- Check account activity – If a mobile deposit doesn’t align with your normal transactions, be cautious.
- Verify the issuer – Does the company or person writing the check operate in your geographic area?
- Inspect the endorsement – Is it missing or does it not match the account holder’s name?
- Compare payee details – Does the payee name match the account owner’s name?
- Look closely at the check – Is it computer-generated with only the payee’s name handwritten? Are the numerical and written amounts inconsistent? Does it show signs of alteration?
- Check image clarity – Blurry or poor-quality check images can be a red flag.
- Did the issuer ask for your banking credentials to expedite the check deposit? – never give your username or password to anyone. If you did give out your credentials, change your password and contact the Bank.
Remember: If something feels off about a mobile deposit, trust your instincts. It’s always better to pause and verify before sending money.