Mobile Deposit Scams: How to Spot Fake Checks and Protect Your Account

What Is Mobile Check Deposit?

Mobile Deposits are paper checks deposited by their recipient using a camera or scanner, without the need to visit a physical credit union or bank branch. It is a feature on most mobile banking apps that lets you take a picture of your check and upload it with just a few clicks, no matter where you are. All HFS accounts, except Business Accounts, are eligible to use Mobile Deposit as long as they are enrolled in Online Banking and have downloaded the Mobile App.

Mobile Deposits allow you to quickly and securely deposit your funds directly into your savings or checking account, all without ever having to step foot into a branch. Using the service is easy. Simply open the HFS App on your smartphone or tablet and follow the on-screen prompts.

There are numerous benefits to using mobile deposits. Including the ability to deposit checks 24/7, no charge to utilize the feature, and you can rest assured that your information is secure when depositing. No more waiting in long lines on your lunch break!

Is Mobile Check Deposit Safe?

Mobile Deposits, as the name says, often involve a mobile device (such as a smartphone or tablet) with a camera and a compatible mobile application. This can also make it a prime opportunity for fraudsters to commit a range of check scams.

Mobile deposits are straightforward to make and are used by millions of American consumers daily. If you have never used your banking provider’s smartphone app to deposit a check previously, it is a safe, quick, and convenient way to make your life simpler.

How Mobile Deposit Scams Work?

However, like every aspect of your money and banking habits, you should be aware of ways that scammers may try to use mobile deposits for illegal personal gain. Fake check scams typically involve a scammer contacting their victim via email or social media, posing as a potential employer, lender, or interested buyer on a marketplace site. The fraudster will often offer the victim the opportunity to earn money quickly by depositing a check into their account.

The scammer will further request the victim’s bank account information and may even ask for online or mobile banking login credentials. Most commonly, these schemes involve temporary hires for work such as mystery shopping or product evaluation.

The victim deposits the fake check using a mobile deposit. While these payments appear legitimate, they often include an overpayment and a request to immediately return a specific amount via certified funds, such as a cashier’s check or money order, wire transfer, or gift card purchase. The check will later be returned as fraudulent, and the victim ultimately takes the loss.

Common Types of Mobile Deposit Scams

Fake Job and Employment Scams

Job/Income Scam: It starts with an advertisement for jobs that don’t exist, such as mystery shopper or online data entry positions. These jobs usually involve receiving a check, depositing it into the victim’s account, and then being instructed to send a portion of the funds elsewhere via wire transfer or money order. Meanwhile, the check is fake, leaving the victim out of pocket.

Romance and Catfishing Scams

Catfishing (fake dating profile): This occurs when the scammer adopts a fake online identity to gain a victim’s trust and affection. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.

Loan and Advance Fee Scams

Loan Scam: Fraudulent online loan scams are similar to job scams. Advertisements for illegitimate loans can lead a victim to deposit a fraudulent check and suffer a loss.

Prize and Lottery Scams

Fake Contests: This occurs through phone calls, emails, or letters claiming you’ve won a sweepstakes, lottery, or cash prize. The victim is asked to pay a fee or tax to claim their prize and is urged to send the money via wire transfer or to purchase gift cards and provide the card numbers. Often, mobile deposit fraud tactics involve capturing account login information for trial deposits or ‘better odds’ if the information is provided.

Account Takeover Scams

Remote Deposit Scams: This involves the scammer gaining access to a victim’s bank account and depositing fraudulent checks. They will then ask the victims to withdraw the funds and send them back through a third-party money transfer service.

Warning Signs of Mobile Deposit Fraud

The key thing to remember with these scams is – if it sounds too good to be true, then it probably is. Especially if they involve requests to send funds back or for bank account or personal information, it’s important to be vigilant and trust your instincts when considering whether or not to mobile deposit a check you have received. Never share your information or accept any form of payment when you are desperate or under pressure.

How to Protect Yourself from Fake Check Scams

Verify Before You Deposit

When you are asked to provide information in exchange for payment, take a moment to consider why they are requesting it and whether there are alternative options. If you are communicating with someone you’ve never met in person, or with a company that lacks a credible online presence, it is likely a scam.

Guard Your Banking Credentials

Your personal and account information should be protected. Genuine employers, friends, and contests will never request this type of information in exchange for payment.

Monitor Your Accounts Regularly

Don’t wait for your monthly statements to check your accounts. With mobile banking, you can easily access your accounts whenever it’s convenient for you. This allows you to confirm that your expected payments have been processed and to detect any fraudulent transactions. The sooner you notice any suspicious activity, the quicker you can take action to address it.

Trust Your Instincts

Your instincts are often your greatest asset and a safeguard against becoming a victim of fraud. Regularly reflect on whether the person you’re dealing with—be it an employer, a significant other, a friend, or a business associate—is behaving as expected and asking you to take reasonable risks. If you feel uneasy or if your conscience is troubled, take a step back and reassess your options.

What to Do If You’ve Been Scammed

The information and steps provided above are effective ways to ensure that you are informed and prepared to protect yourself against mobile deposit fraud. However, scammers can be highly skilled and persuasive, which means you may still be at risk despite your best efforts.

If you suspect you have been a victim to a mobile deposit scam, it is crucial to contact your local police department immediately. Additionally, notify your financial institution as soon as possible so they can implement extra safeguards on your account.

Take Control of Your Financial Security Today

Keep in mind that if an offer appears too good to be true, it likely is. If you’re uncertain, trust your instincts and do not move forward. If you have questions about protecting your identity and your online accounts, visit hfsfcu.org or call 808-930-1400.