May 4, 2026
A particular kind of fraud is on the rise, and it's one that could cost you a car.
The typical victim of fake check fraud loses about $2,000, according to the Federal Trade Commission. (1) Once you exchange an item for a fake check, it can be difficult to get your asset back, even with proof that the check is fake.
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Say you've sold your car for $10,000 to a buyer on Facebook marketplace. You deposited the check at your bank, and it bounced. Is there any way you can get your money back?
Reach out to the buyer
Best case scenario, you know the buyer's real identity. You might reach out to them to ask for a replacement check or cash. This is best done over writing, in case it ever goes to court. (2) Some states, like Florida, require you to give notice to the buyer through certified or registered mail. (3)
Should the buyer fail to respond promptly or replace your check, you might want to contact an attorney. A bounced check may be grounds for civil charges if the buyer doesn't have a good reason the check bounced — and criminal charges if they intended to defraud you. (4) If the buyer has possession of your car, they may also be on the hook for theft. (2)
Unfortunately, many cases aren't so cut and dry. Scammers, especially online scammers, may use fake identities or addresses. If you're unsure of their real identity, or you think it might be a scam, it's best to escalate as quickly as reasonable and immediately reach out to the buyer to demand a check in writing.
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File a police report
Suspect a scam? File a police report that includes as much relevant information as possible. Include details like photos of your car, the buyer's information, and records of communication. (2)
If the buyer used fake personal information, police may struggle to identify the culprit. This was the case with Ethan Hines, who sold his 2018 Camaro to a man on Facebook Marketplace. Initially cleared, the check was reversed four days later. Hines contacted the police, who said the buyer's story and Facebook profile were fake. There is no record of the culprit being caught. (5)
If a check bounces, don't wait to reach out. The quicker you report the incident, the less chance there is of the buyer exiting the scene with your property.
The Better Business Bureau lists a common type of check fraud in which sellers don't realize they've been defrauded until days after depositing the check. (6) In many cases, the check will clear — as it did for Hines — creating the impression of legitimacy. The deposit reverses once the bank or credit union verifies a check's authenticity, days later. Fraudsters exploit that gap.
Fake check fraud remains an issue
There were 18,663 foreign money offers and fake check scams reported to the Consumer Sentinel Network in 2024, the FTC reports. That said, the number of actual scams are probably much higher. One study suggests about 5% of victims report mass-market fraud. (7)
Recently, the FTC flagged another type of scam that targets online car sellers. (8) Someone says they're interested in buying your car but can't see it in person. They send you a check for you to hold the car — they overpay. They say, "oops," and ask you to return the difference. You wait until the check clears, and once it does, you return the money.
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The scam: Days later, the bank reverses the deposit into your bank account. The reason? Bad check. The deposit evaporates; the so-called buyer absconds with the money you "returned."
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How to avoid fake check fraud
Check fraud can be sophisticated. It's sometimes very difficult to tell whether a check is fake. Scammers have been known to create fake cashier's checks and money orders. Some will use real company names to sell the deed. (6)
For car sellers specifically, the FTC recommends taking three steps to avoid check fraud: (8)
- Only accept checks for exact amounts.
- Never send money to someone who says they overpaid by check.
- Consider using an escrow or online car payment service.
One major takeaway: A bank will often clear a check before checking for fraud, which can take weeks. Cleared checks are not sure bets. If your bank (or credit union) later decides the check is fake, they can reverse the deposit into your account. If you don't have enough to return the deposit, your bank could sue you to recover the money. (9)
If you make a major transaction over check, consider waiting a couple weeks for your bank or credit union to confirm it's legitimate.
Fake check fraud isn't pretty, and what comes next can be messy. The earlier you report fraud to the relevant authorities, the more likely you'll recover any lost funds.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Federal Trade Commission (1),(8); Nolo (2); State Attorney's Office, 5th Judicial Circuit (3); California Office of the Attorney General (4); First Coast News (5); Better Business Bureau (6); SSRN (7); El Dorado County (9)
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Cole Tretheway has been covering money for four years. He started as an intern at The Motley Fool Money, covering best-of credit cards, savings accounts, and financial products. He's since expanded into wholistic personal finances, including the psychology of money.
