How to Spot a Fake Check Before You Cash It

Watermarks are one of the few security features you can see without special equipment

A watermark is a faint image or pattern pressed into the paper during manufacturing. On a legitimate check, you can see it when you hold the check up to light — it appears as a lighter or darker area depending on the check's design. The watermark is difficult to copy because it requires special paper and equipment that counterfeiters usually do not have access to.

Before you cash any check, hold it to a light source and look for the watermark in the area the issuing bank specifies. If you cannot see it, or if it looks blurry or uneven, the check may be counterfeit. A missing or poorly printed watermark is a red flag that the check was not printed by the bank's authorized vendor.

Watermarks work alongside other security features — microprinting, color-shifting ink, and security threads — but the watermark is the easiest one for you to verify yourself without tools. Banks include these features specifically so that people handling checks can catch fakes before money changes hands.

Key Takeaways

• Hold any check up to light and look for a watermark — a faint image embedded in the paper that is hard to counterfeit.
• A missing, blurry, or uneven watermark suggests the check may be fake and should not be cashed.
• Watermarks are one of several security features on legitimate checks, but they are the one you can check without special equipment.
• If you work at a bank or check-cashing business, you should verify the watermark on every check before processing it.
• Cashing a counterfeit check can result in overdraft fees, account closure, or legal liability depending on your bank's policies.

Where the watermark appears on a standard check

The watermark location varies by bank and check design. Most banks place it in a corner or along an edge of the check, often near the bank's logo or name. Some watermarks run vertically down the side; others sit horizontally across the top or bottom. The bank that issued the check should be able to tell you exactly where to look.

If you receive a check and are unsure where the watermark should be, contact the bank directly using the phone number on the back of the check or on the bank's official website. Do not use a phone number printed on the check itself, because a counterfeit check may include a fake number that connects you to the counterfeiter. Call the bank's main line and ask them to describe the watermark location for that check series.

What happens if you cash a counterfeit check

If you deposit or cash a counterfeit check, your bank will eventually discover it — usually within a few business days when the check fails to clear. At that point, the bank will reverse the deposit and charge you an overdraft or returned-check fee, typically $25 to $35. If you already spent the money, you will owe your bank the full amount of the check plus the fee.

If you work for a business that cashed the check, your employer may hold you responsible for the loss. Some employers require employees to reimburse the business for counterfeit checks they processed. Banks may also close your account if you repeatedly cash bad checks, whether intentionally or by accident.

In rare cases, if law enforcement determines you knowingly cashed a counterfeit check, you could face criminal charges. Even if you did not know the check was fake, depositing counterfeit currency is a federal offense, though prosecution is uncommon when the person who deposited it was the victim of the scam.

Other security features to check alongside the watermark

Watermarks are not the only way to spot a fake. Legitimate checks also include microprinting — tiny text that appears clear to the naked eye but becomes blurry under a magnifying glass on a counterfeit. Look for microprinting along the border or near the signature line.

Color-shifting ink is another feature on many modern checks. Tilt the check and watch the ink change color — usually from green to gold or purple to blue. Counterfeiters struggle to replicate this effect because it requires specialized ink and printing equipment.

Security threads are thin strips embedded in the paper itself, similar to those in U.S. currency. Hold the check up to light and look for a thin line running through the paper. The thread may have text printed on it. If the thread is printed on top of the paper rather than embedded in it, the check is likely counterfeit.

Red flags beyond the watermark

A missing watermark is not the only sign of a counterfeit check. Be cautious if the check feels flimsy or has a texture that does not match other checks from the same bank. Legitimate checks are printed on special security paper that feels slightly different from regular paper.

Look at the printing quality. Legitimate checks have crisp, clean lines and consistent ink color. If the text looks fuzzy, the colors are uneven, or the numbers do not line up properly, the check may be fake. Compare it to another check from the same bank if you have one available.

Check the routing number and account number at the bottom of the check. These numbers should be printed in magnetic ink character recognition (MICR) format — a special font that looks slightly different from regular text. If the numbers look like standard printing, the check is likely counterfeit.

What to do if you suspect a check is counterfeit

Do not cash or deposit the check. Instead, contact the bank that supposedly issued it using the phone number on the bank's official website or a number you look up independently. Tell them you received a check and want to verify it is legitimate before processing it. The bank can confirm whether the check number, routing number, and account number match their records.

If the bank confirms the check is counterfeit, ask them how to report it. You can also report counterfeit checks to the U.S. Secret Service, which investigates counterfeiting cases. The Secret Service has an online form on its website where you can report suspected counterfeit currency or checks.

If you already cashed the check and later discovered it was fake, contact your bank when ready and explain the situation. The sooner you report it, the better your chances of resolving the issue without being held liable for the full amount.

Frequently Asked Questions

Can I see a watermark on every legitimate check?

Most modern checks include watermarks, but older checks or checks from smaller banks may not. If you are unsure whether a particular check should have a watermark, contact the issuing bank directly. They can tell you what security features that check should have.

What if the watermark looks faint or hard to see?

Watermarks are intentionally faint so they do not interfere with the check's readability. If you are having trouble seeing it, try holding the check at different angles under a bright light. If you still cannot see it after trying multiple light sources, contact the bank to verify the check's authenticity.

Can counterfeiters copy watermarks?

High-quality counterfeiting operations can sometimes replicate watermarks, but it requires expensive equipment and specialized paper. Most counterfeiters skip watermarks entirely because the cost is not worth it. This is why a missing watermark is such a reliable red flag.

Who is responsible if I cash a counterfeit check at my job?

Responsibility depends on your employer's policies and your role. Some employers hold the employee who processed the check accountable; others absorb the loss themselves. Ask your manager or human resources department about your company's policy on counterfeit checks before you encounter one.

How long does it take for a bank to discover a counterfeit check?

Most banks discover counterfeit checks within two to five business days, when the check fails to clear at the issuing bank. Some checks take longer if they are deposited at a different bank or processed through a mobile app. The longer the delay, the more likely you will have already spent the money.