What Are the Consequences of Depositing a Fake Check?

Each year, roughly 500 million checks are forged. While some of these checks are written intentionally, even people who are not knowingly writing false checks may still fall victim to check fraud and accidentally come into possession of a fraudulent check. Since this is a widespread problem, understanding how banks handle fraudulent check deposits will help protect you from scams and legal problems.

Quick Answer Summary

Depositing a fake check can lead to serious financial and legal consequences, even if you were unaware the check was fraudulent. Banks may reverse the deposit, charge fees, freeze or close your account, and investigate the transaction. If fraud is intentional, criminal penalties may apply.¹²

Key Takeaways

Intentionally depositing a fake check is considered fraud and may result in fines, criminal charges, or imprisonment depending on the circumstances and applicable laws.¹
Even if you unknowingly deposit a counterfeit check, your bank may reverse the deposit, assess fees, or place restrictions on your account while investigating the transaction.²³
Common warning signs include unexpected checks, overpayment scams, requests to return part of the funds, and poor-quality or suspicious check details.³⁴
Never spend funds from a deposited check until your bank confirms the check has fully cleared and been verified.²
Businesses can reduce fraud risks by using trusted check printing, mailing, and payment providers that follow established security controls and best practices.⁵

Can You Go to Jail for Depositing a Fake Check?

Many people think check fraud is perfectly harmless, as it involves simply depositing a piece of paper with your bank. However, it can be quite serious. What happens if you try to deposit a fake check? Can you go to jail for depositing a fake check? Definitely.

So, what happens if you deposit a fake check? According to federal laws, intentionally depositing a fake check to get money that is not yours is an act of fraud. Just like any other act of fraud, you can go to jail or face fines. The exact punishment for check fraud typically depends on the amount of money a person fraudulently obtained. Being found guilty of misdemeanor check fraud typically involves a fine, whereas a felony results in jail time.

The exact amount of the penalty for a first-offense check fraud misdemeanor will depend on where you live. In most states, any amount under $1,000 is considered a misdemeanor, while any amount exceeding the cutoff is classified as a felony. A non-felony amount can still be upgraded to felony check fraud charges if you have repeatedly been convicted of fraud. Misdemeanor check fraud can also become a felony if other crimes, such as assault, are involved.

Other Consequences of Depositing a Fake Check

Depositing a fake check, even unknowingly, can have costly consequences. What happens if you unknowingly deposit a fake check? Some of the possible consequences include the following:

You might be asked to repay the entire amount: While state laws and bank policies can vary, some banks might require you to pay the entire amount of the fraudulent check you deposited or cashed.
You will be required to pay overdraft fees: If you have spent the entire amount before the bank discovers the check is fake, the entire amount will be debited from your account, and it may become overdrawn. On average, you can incur an overdraft fee of $30 per transaction.
Your account can be frozen or closed: If you have deposited a fake check, your bank can freeze or close your account.
Your credit history can be compromised: If some of your bills are linked to your checking account and you miss the due dates, the check may bounce. The payment history is one of the most significant factors that credit bureaus use to determine your credit score. Missed payments can surely damage your credit score.
Your banking history can be affected: If you have a history of depositing fake or bad checks, checking account companies will record the instances in your checking history. Credit unions and banks will use the information to determine whether you are eligible to open a checking account. If you have a poor banking history, your request for a checking account can be denied.
You may incur late fees: You will be charged late fees if you miss paying bills due to insufficient funds after cashing a fake or bad check. Unfortunately, late fees can be exorbitant. Case in point: some credit card companies charge as much as $40 for late fees.

How to Spot a Fake Check

It can be challenging to determine if a check is genuine or counterfeit based solely on physical inspection. Fortunately, there are a few things that can help you spot a fake check:

Ensure a legitimate bank issues the check: Look up the phone number on the bank’s official website. Call and ask them to verify the check. Typically, you will be asked to provide the check number, amount, and the date it was issued.
Consider how and why you got the check: If the check payment is initiated by someone you don’t know, be wary and proceed with caution. Scammers often communicate with their victims through text or email. Also, be on the lookout for grammar and spelling errors, as they are possible clues that you are dealing with questionable characters.
Check where the check is mailed from: Is the postmark the same as the state and city of the issuing bank? If not, it can be a clue that the check is fake. Be extra cautious if the check is from an overseas bank.
Verify that the indicated amount is correct: Most counterfeit checks are made out for more than the agreed-upon amount. This strategy is done to coax the recipient into wiring the overpayment to the scammer.
Check for security features: Legitimate checks typically feature color-changing ink, security threads, watermarks, and other security elements. While scammers can attempt to copy the security features, the quality is often poor.

What Happens If You Don’t Know the Check Is Fraudulent?

Most people depositing fake checks are not doing so to cheat their bank. Instead, many fake check deposits involve unsuspecting victims. A person may receive a fake check as a payment and deposit it without realizing it is not real. The consequences of unknowingly depositing fake checks will depend on what happened before and after you deposited the check.

First of all, the bank will take a close look at the deposit to determine whether it believes you did it intentionally. They may file a police report for any deposit of a forged check, or they may conduct an internal investigation first. If the bank believes you submitted the check in good faith, they may avoid pressing charges or closing your account. However, if multiple forged checks are submitted, even unknowingly, the bank may close your account.

It is also important to consider the financial consequences of depositing a fake check. The best-case scenario is that you have not yet used any associated funds. In these cases, the bank will simply reclaim the funds, and neither you nor the bank will incur any losses. Things get trickier if you have already started spending the funds from the check. Legally speaking, a bank can be held liable. However, this is only in cases where the bank did not properly check the check before depositing the funds into your account.

If the bank can prove that it accepted the check in good faith and exercised reasonable care to verify it before depositing the funds, the customer may be liable for the check. That means the bank removes the fraudulent funds and proceeds from there. If your account is not overdrawn after the funds are removed, it will be as if you lost some of your savings. If your account is overdrawn, you owe the bank the amount of the overdraft. Typically, this will involve various fees and interest if you cannot repay it on time.

How Can You Handle Check Fraud Charges?

If you have deposited a fraudulent check into your bank account, your next steps will significantly affect the outcome. Whether you were aware that the check was fraudulent plays a big role in the types of punishment you may face for check fraud. It is a good idea to consult a lawyer who can advise you on the legal aspects of the matter.

You must be honest with the bank about where you got the check. Explaining how the check came to be in your possession and why you thought it was valid can help your case. Gather evidence, like witness statements or receipts, to verify your side of the story. You should avoid spending the funds in your bank account until the situation is resolved.

If you suspect a check may be fraudulent, it’s a good idea to avoid spending until the bank can verify it. This can help reduce the chance of you owing the bank large amounts of money due to fraud.

How Can You Avoid Common Check Fraud Scams?

To prevent check fraud, it is essential to remain vigilant. There are all sorts of check fraud scams out there that you can fall prey to. Many start with someone giving you a large check to pay for something or cover a loan. Then, they tell you that you can keep some of the funds as long as you just send their “change” back to them. Often, scammers ask you to send money via money transfer services, gift cards, or other untraceable methods. Another common type of scam involves awarding you a fraudulent check as a prize and then informing you that you must pay a fee to collect it.

Being aware of these scams can make it a little easier to avoid them. Checks can be a safe way to receive funds, but only when issued through check printing and mailing services. Random checks from an unknown and untrusted source should always be treated with some suspicion. You should always be wary of strangers offering you a check without using reputable check printing and mailing services. Any junk mail or random emails offering you a check should be suspect. If you are concerned about a check, consult with your bank before depositing it. They can help verify it and ensure you are not liable for any funds.

At CheckIssuing, we help reduce your risk of running into fraudulent checks. As one of the most reliable check printing and mailing companies, we ensure that our customers’ finances are protected. We rigorously follow all industry standards and have undergone a SOC II audit, so you can count on us to provide accurate and trustworthy check services.

Protect Your Business Against Check Fraud

Whether you’re issuing payroll, rebate, refund, or accounts payable checks, using a trusted payment partner helps reduce risk while improving payment accuracy and tracking. CheckIssuing provides secure check printing, mailing, email checks, ACH, lockbox processing, and payment solutions designed to help businesses manage payments with confidence.

Contact us, call our team, or schedule a meeting today to learn how CheckIssuing can help you simplify payment operations while reducing exposure to check fraud.

Citations

Mondaq. A Bank Can Be Liable if It Acts on the Fraudulent Instructions of a Customer – The Singularis Saga. https://www.mondaq.com/financial-services/870862/a-bank-can-be-liable-if-it-acts-on-the-fraudulent-instructions-of-a-customer-the-singularis-saga
Federal Trade Commission. How to Avoid Fake Check Scams. https://consumer.ftc.gov/articles/how-spot-avoid-and-report-fake-check-scams
Office of the Comptroller of the Currency. Check Fraud Scams. https://www.helpwithmybank.gov/help-topics/fraud-scams/index-fraud-and-scams.html
American Bankers Association. Protect Yourself From Check Fraud. https://www.aba.com/banking-topics/risk-management/fraud/check-fraud
U.S. Secret Service. Financial Crimes and Counterfeit Prevention. https://www.secretservice.gov/investigations/counterfeit

Last updated: September 2025