Cheque fraud continues to be one of the most common financial scams in Canada. While many people use cheques less frequently today, fraudsters still rely on counterfeit, altered, and fake cheques to steal money and personal information. Whether you're depositing a cheque through mobile banking or receiving one from someone you don't know, knowing the warning signs can help protect you from financial loss. Here's some tips on how to recognize a fraudulent cheque—and what to do if you receive one.
Cheque fraud happens when someone uses a counterfeit, altered, stolen, or unauthorized cheque to obtain money or deceive another person.
Fraudulent cheques are commonly used in scams involving:
In many cases, victims are asked to deposit a cheque and send part of the money elsewhere before the cheque is returned as fraudulent.
Yes. When you deposit a cheque, funds may appear in your account before the financial institution has fully verified the cheque. This does not mean the cheque has officially cleared. If the cheque is later determined to be fraudulent, the funds may be removed from your account, and you may be responsible for any money you spent or transferred.
Be cautious if a cheque contains unusual wording, such as:
While these phrases are not automatically proof that a cheque is fraudulent, they should encourage you to verify the cheque before depositing it. If something seems unusual, contact the issuer or your financial institution.
A legitimate cheque should include information such as:
Missing or inconsistent information can be a warning sign.
Look carefully for:
Any visible alterations should raise concerns about the cheque's authenticity.
Counterfeit cheques often have:
Legitimate cheques are generally professionally printed with consistent formatting.
Verify that the cheque includes accurate:
If something doesn't match publicly available information, verify the cheque before depositing it.
The MICR (Magnetic Ink Character Recognition) line appears along the bottom of a cheque.
Warning signs include:
If the MICR line looks unusual, ask your financial institution to review the cheque.
Fraudsters often use fake cheques in situations where they ask you to send money after depositing the cheque.
Examples include:
A common warning sign is being asked to send money before the cheque has been fully verified.
If a cheque is returned after you've spent or transferred the funds, you may be responsible for repaying the money.
Fake cheque scams often involve collecting personal information that can later be used for identity theft or additional fraud.
Depositing fraudulent cheques—even unknowingly—may result in your financial institution reviewing your account activity or delaying access to future deposits while the situation is investigated.
Before depositing a cheque:
If something feels unusual, it's always worth asking questions before depositing the cheque.
Look for missing information, poor printing quality, alterations, unusual wording, incorrect financial institution details, or suspicious requests connected to the cheque.
If you unknowingly deposit a fraudulent cheque, your financial institution may investigate the transaction, and any funds credited to your account can be reversed. Acting quickly and reporting concerns can help minimize the impact.
No. Funds may become temporarily available before the cheque has been fully verified. Final verification can take additional time.
Do not send money or make purchases with the funds. Contact your financial institution to verify the cheque before depositing it.
Cheque fraud continues to evolve, but knowing the warning signs can help you avoid becoming a victim. If you receive a cheque that seems unusual, don't rush to deposit it. Take the time to inspect it carefully, verify the issuer, and contact your financial institution if you have questions. A few extra minutes of caution can help protect your money and your personal information.
YNCU members who receive a suspicious cheque or believe they may have been targeted by cheque fraud can contact the Service Excellence Centre at 1-888-413-9628. You can also report fraud to the Canadian Anti-Fraud Centre at 1-888-495-8501.
YNCU is here to support your financial literacy journey with practical fraud prevention resources, banking education, and honest money talk.