How do you know if you have received a fraudulant check?

Answer 1

The previously posted answer probably didn't help you and don't believe it when people say checks are hardly used anymore. Checks are becoming popular again with the increase in credit card rates. Not only to the user but merchant's are paying more to the credit card companies.

There are multiple signs to a fake check. The bottom of the check with the Account Number, Bank Routing Number and Check Number is called the MICR line. The majority of the time the first 9 digits are the banks routing number (ABA Number.) It should always have 9 digits. You should also see the check number on the top right of the check located in the MICR line. The person presenting you the check should have their name on the top of the check. Government checks like a WIC or assistance check usually come with a watermark. You should also be able to press firmly on the check and if any of the ink smudges its probably fake.

An ID is always good to see, you can use a Social Security card, Drivers license, or a credit card. You can write the information down from a DL or SS card but you can't write a credit card number on a check. I doubt you will find many people who carry a birth certificate with them.

Not accepting checks at all will limit the number of customers your business will see. If you can afford it you can always look for a service that provides a check verification terminal. They can usually be leased for $15-$20 a month and you pay a few cents for each check you verify using the terminal.

Previous Answer:

Always ask for ID. Your driver's license and most forms of ID such as birth certificate all need your signature. Check the ID signature with that of the check. If the person isn't there to do this and you have no means of checking their signature then I'm sorry to stay you may get stuck with a fake check. You can also phone the bank on the check to see if the funds are available. The only other alternative is not to accept checks at all. Cash on the barrel head or on Visa or from the ATM machine.

Checks are rarely used today and Visa, Mastercharge, pay on your ATM, or cash is the most popular.

I only use checks when I'm having a large job done to my home so I can cancel the check if I'm not happy with what has been done and I've had to do that once.

Answer 2

It would be tough to know for sure that you have a fraudulent check. But there are a few things you can check out to reduce your exposure. First, don't accept a starter or counter check unless you know the person very well. Second, you probably wouldn't want to accept any computer printed checks. Third, check the state issued ID of the person carefully and make sure the names and addresses match. Fourth, make sure all the numbers required to identify the account are printed at the bottom of the check. This would include a 9 digit American Bankers Association routing number (in the United States), followed by an account number. A check would also normally have the name of the bank, and often a phone number for the bank. You can go to this website to identify the bank that the routing number belongs to. http://www.fedwiredirectory.frb.org/search.cfm. The bank name that comes up should match the bank printed on the check. If you call the bank phone, it should be a working number. Most of the time, a bank will be willing to verify that funds are available to cover the check or if there is a hold or stop payment order placed on a particular check number. You should also try to get a working home phone number from the person writing you the check, preferably not a cell. Call the number to make sure it works. If it is a listed number, there are websites you can go to where you can enter the phone number and the site will return the name and address of the person the phone number belongs to. Obviously, it should be the person who presented the check, or family member or roommate. Keep in mind there are legitimate reasons why someone might not have a home phone, or is using starter checks, etc. Use your best judgment. But these are a few tools you can use to minimize your risk.