You cannot simply rely on a free site to check a number and determine if a check is good or not. That’s a point that most verification guides overlook. Online tools may verify the existence of a bank and validity of a routing number, but will not verify that the account is open, that the signature is authentic, or that money is available. If you are depositing a suspicious check, check the bank, the story of the check and the paper itself.
The Free Online Check Verifier Most People Expect Does Not Exist
In reality, consumers have no public government database with which they can input a check number and get a “good” or “bad” response. The same check can have a real bank name, a valid nine digit routing number and a believable account number and yet still be counterfeit or altered. Even if your check looks professional, it may be worthless.
Some free services only check the routing number or the bank. This will tell you where the check says it’s from. It does not establish the ownership of the account, an adequate balance of funds or the authorization of the payment.
Never enter any banking password, debit card PIN, social security number, or account logon into a check lookup site! That information is not required for a routing-number search. “Fake checks” should be included in any personal finance course geared toward beginners.
Start by confirming that the Bank is real
Check the bottom of the check for the bank name and routing number. Do not rely on a logo, website, or “Member FDIC” banner on the paper to find the institution, use FDIC BankFind instead. BankFind can validate if a given bank is a genuine FDIC protected financial institution and direct you to the bank’s official location.
Even a real bank name doesn’t make the check real. Often, scammers put on fake paper actual banking information. Review spelling, branch address, legal name and nine-digit routing number. If the check is made out to a different bank than the routing number, then stop!
The FDIC suggests that you should search the bank’s telephone number for yourself, rather than calling a number that was printed on a suspicious check.
Call the Issuing Bank with the information you come across
To use the number on the bank’s official website or the FDIC BankFind. A number that you don’t know or trust from the person who pays you should be avoided. A scammer can pick up the phone and pretend to be from the bank’s verification department.
Inform the bank that you’ve been sent a check and you wish to confirm it. Be prepared with the check number, issue date, check amount, the name of the person they are paying and the routing. Some banks may verify to see if a cashier’s check was issued and/or if it was in the same format as their records. Others will not show you account information or confirm the balance in your accounts.
Now suppose that a new customer mails you a $1,850 check for freelance work. The bank will confirm its name and routing number but won’t confirm the customer’s balance. That does not mean it is fraud, but it does not mean that they can justify their use of the funds. Request an e-payment from them that has a confirmation number or wait for your bank to confirm the deposit.
Review the Warning Signs in the Paper and the Payment Story
Check the written amount, the name of the payee, if there are any changes, different typefaces, logos that are blurred, missing security features or numbers that don’t align. These clues are useful but a good fake can fool you.
The payment narrative may be a more telling one. A buyer that pays $3400 when the item in question is worth $2500, and requests that you refund $900, is facing a classic overpayment problem. The scammer will request that you wire real money prior to the rejection of the check.
If they ask you to purchase gift cards, transfer cryptocurrency, wire money or pay a third party it is a big red flag. Note that some payment options may come with a convenience fee – inquire about the final price before changing the mode of payment. It’s better to pay a fee that’s disclosed than risk losing thousands to a fake-check scam.
Available Funds Do Not Mean the Check Has Cleared
Banks can make deposited funds available prior to determining the check’s validity. Availability can be described as the bank’s willingness to make the funds available to you as per its deposit policy. It is not an indication that the check has been cashed by the paying bank.
Imagine that a $2,000 deposit can be seen after 2 business days. You wire $1,400 to the payee, after a week the check is returned as fake. Your bank may take the $2,000 as well and you will have to pay the $1,400 that you sent and any overdraft and bounced payment charges.
Even when money is withdrawn from a bank or credit union after the funds are available to the bank, the Consumer Financial Protection Bureau confirms that a bank or credit union can recover funds from a check that is fraudulent. An emergency fund is important as a cash cushion which can prevent one deposit from an emergency from resulting in missed bills. Saving shouldn’t be the security for an uncertain expenditure.
Verify Cashier’s Checks and Overpayments
Sellers may prefer that a cashier’s check comes from the bank, rather than from a person, due to the fact that it is issued from the bank’s own funds. A fake can replicate the bank’s name or routing number, security words, and employee’s name.
Suppose that you are selling a used car for $4,500. You receive a check from the buyer for $5,300 and get a $800 “shipping agent” check from the buyer. Don’t pass along the difference. Call the bank back and inquire if that check was sent by them. Hold the car, title and keys until payment is verified.
Overpayment checks are a relatively typical fraud that involves cashing a check for more money than is available, says the CFPB, and requiring an overdue repayment to the bank when the check bounces. A debt verification letter verifies information about a debt, but does not verify that a paper check is legitimate.
Preparing for Deposit and Handling a Check After It Has been Deposited
Ask the payer to identify themselves again and the purpose of the payment using a method which you are already comfortable with. Check it is an authentic bank, get the phone number from an independent source and ask what it can confirm. If the bank is unable to confirm the check, ask for an alternative, safer payment method and do not consider uncertainty a successful payment.
Deposit in your own bank with a large or unusual check. Tell them how you got it and if they have noticed signs. They cannot guarantee that the check will be paid, but they might be aware of a scam pattern.
Do not delete the check or any related messages after depositing. Send nothing else to anyone for money. Monitor deposits and activity on the account and report any returned check to the bank bank as soon as possible. Not only is it a fraud task, it’s also a task to keep track of your spending.
The Bottom Line
Do not indicate the check is safe with free online tools for verification of the bank. Use FDIC BankFind to identify the institution, call the official number you used to identify the institution, ask for anyone who asks you to send a portion of the money to a different place why. Do not use the deposit without realising it. If the bank refuses to confirm the check, and you don’t agree to a safer way, leave.
Frequently Asked Questions
What is the best way to check a check online without paying anything?
Be sure to use FDIC BankFind to verify that the issuing bank exists and get the bank’s official phone number to call. While a routing-number lookup can determine a bank, there is no free public service that can 100% ensure that the check will be cashed.
Is it safe to call the bank to make sure it’s a check?
Yes, but the bank may restrict their disclosure. Use the phone number on the bank’s official website, or the FDIC BankFind service, rather than the number on the check.
When should I make my first withdrawal from a check that I deposited?
There is no waiting period that will ensure a check is a true check. It is best to contact your bank to check the status of the deposit and not cash any money from a check that you haven’t interacted with before, particularly if the person who wrote the check says to wire money to another person.
Discamiler:
This article is for general informational purposes only and does not constitute financial advice. Please consult a qualified financial adviser for guidance specific to your situation.
