Check fraud is on the rise—and scammers are now using social media to lure victims into illegal schemes. The Federal Trade Commission (FTC) and banking experts are warning consumers about a disturbing trend that disguises check fraud as a “money-making hack.”
What Is Check Kiting?
Check kiting involves using checks in deceptive or illegal ways to steal money. In this latest scam, fraudsters promote a so-called “check hack” on platforms like TikTok and Instagram. These posts encourage users, often teens, to:
- Write a check for more than they have in their account.
- Deposit it into another account they control.
- Withdraw the funds before the check bounces.
This is a textbook example of check fraud. Once the bank realizes the check is invalid, it reverses the deposit—and the person who deposited it is left responsible for the full amount. Worse, they may face account closures and criminal charges.
Why This Type of Check Fraud Is Dangerous
This scam is especially harmful because it’s disguised as a clever financial tip. But participating in check fraud—even unknowingly—can lead to serious consequences:
- Financial loss: You’ll owe the bank for any withdrawn funds.
- Account closures: Banks may shut down your accounts and report the activity.
- Legal penalties: Check fraud is a crime and can result in prosecution.
How to Avoid Check Kiting Scams
To protect yourself from check fraud, follow these tips from the FTC and banking professionals:
- Be skeptical of “easy money” posts: If it sounds too good to be true, it probably is.
- Don’t trust anonymous financial advice, especially from social media.
- Research before acting: Look up the trend with keywords like “check fraud” or “bank scam.”
- Talk to your bank: If you’re unsure about a financial opportunity, ask a trusted advisor.
Our Commitment to Preventing Check Fraud
At Peoples Bank, we take check fraud seriously. Our team is here to help you recognize scams and protect your finances. If you think you’ve been targeted by a check fraud scheme, contact us immediately.
For more information on how to spot and avoid check fraud, visit ftc.gov/fakechecks. To learn more about other types of scams, check out our Fraud Awareness & Prevention page.