Protecting Young Consumers from Check Fraud via Messaging Apps

MARSHFIELD, WI (OnFocus) – As digital natives, younger generations often rely on mobile banking for convenience and flexibility. However, this ease of access has made them prime targets for fraudsters, who have adapted their tactics to exploit modern technology. One rising scam involves sending fraudulent checks via messaging apps, luring young people into depositing check images through mobile banking. Here’s what to watch for, how banks are protecting consumers, and what to do if you fall victim.

 What to Watch For

Fraudsters may approach you through messaging apps or social media, offering seemingly legitimate checks. These could be tied to fake job offers, “overpayment” schemes, or even as gifts from strangers or new acquaintances. Key warning signs include:

• Unexpected checks: If you weren’t expecting a payment, be wary and ask more questions.
• Pressure to act quickly: Scammers may urge you to deposit the check immediately.
• Suspicious reasons for payment: If the sender can’t explain why they’re paying you, be wary or delete the message and walk away.
• Requests for the money from the check deposited to be sent back immediately through a Peer to Peer (P2P) payment like Zelle, Cash APP, Venmo or others.

“Like all scams, individuals targeting younger generations are getting more sophisticated and creative in coercing people into depositing the fraudulent checks,” comment Rochley Gross, Fraud Specialist at Forward Bank. “This fact combined with a tougher economy makes it more likely that individuals want to believe that they are receiving a legitimate check.”

 How Banks Protect Consumers

Banks take multiple steps to safeguard their customers, especially against mobile check fraud:

• Fraud detection systems: Many banks use advanced systems to detect suspicious activity, including mobile check deposits that seem out of character.
• Hold policies: Banks may place holds on checks to verify their authenticity, especially large or unexpected ones.
• Education and awareness: Banks provide information to help customers recognize scams, encouraging vigilance around unsolicited payments.

“One of the hardest parts of protecting our customers at times is convincing them that they have been a victim of fraud,” stated Connie Zuleger, COO of Prevail Bank. “Whether it is coaching by the fraudster or embarrassment that this happened, many won’t admit the situation or accept help. We are here to help our customers and keep their financial health in mind.”

 What to Do if You Fall Victim

If you suspect that you’ve been targeted or have deposited a fraudulent check, it’s important to act quickly:

1. Notify your bank: Contact your bank immediately to report the suspicious check. They can help mitigate any financial damage.
2. Monitor your accounts: Keep a close eye on your bank statements and report any unusual transactions.
3. Alert the messaging platform: If the fraud was initiated through a messaging app, report the scam to the platform as well.
4. File a complaint with the FTC: The Federal Trade Commission (FTC) collects reports of fraud and can provide resources to help you recover.

By staying alert and informed, younger consumers can better protect themselves against check fraud in the digital age.

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