Protect Yourself From Mobile Check Deposit Scams

posted on Monday, June 21, 2021 in Financial Tips


If you’re working a day job, you’ll know that trips to your financial institution can be difficult to schedule. Thankfully, depositing checks and making payments remotely is now possible through mobile banking. You simply have to download the app and make a deposit anytime and anywhere.

However, despite the convenience it provides, users should remain vigilant against individuals who abuse these platforms. To help you identify mobile check deposit scams, here’s an overview of how fraudsters usually operate.

How It Works

  • Step 1: Scammers will pose as potential buyers, employers, or lenders and reach out to their target via email or social media.
  • Step 2: They’ll lure the victims by providing an opportunity to earn fast cash. Then, the scammer will deposit a fake check to the victim’s bank account, and ask for personal information like their account number and mobile banking app credentials.
  • Step 3: The victims will be asked to cash out the same amount indicated on the fraudulent check, from their personal funds. After that, they’ll be instructed to send the money to the scammer via money order, wire transfer, gift cards, etc. 
  • Step 4: The financial institution will alert the victims about the fake check and have it voided. However, by this time, the funds have already been wired to the scammer, leaving the victims having less than they originally started with. 

How You Can Avoid Getting Scammed

Check deposit scams can often be easily spotted if you know what you’re looking for. You can safeguard yourself by avoiding these red flags:

  • Misspelling or typos in crucial information like the payer’s name
  • Payers and banks from a different state
  • Check amount that exceeds the amount originally intended—a scheme usually done by scammers to lure the victim

If you think you or someone you know has fallen victim to this banking scheme, notify your financial institution and the authorities immediately. The sooner you do this, the higher the chances you can recover your losses.

Enjoy Safe and Secured Digital Banking With C1st!

With Community 1st Credit Union’s digital banking app, members can manage their finances from the comforts of their own home or office. They’ll have 24/7 access to services like fund transfers, account alerts, and bill payments. Contact us today to become a member!