Warning: Fake-check scams targeting childcare providers
A message from a stranger urgently needing childcare sends a check for more than the agreed amount and asks the provider to wire back the difference before the check bounces.
The message comes out of the blue: someone says they need urgent childcare — often for a relative arriving in town — and offers to pay a deposit or the first weeks upfront. They send a check that is written for far more than the agreed amount, then ask the provider to wire, e-transfer, or app the “extra” back to them or to a third party like a supposed moving company.
The check looks and even initially clears like a real one, so providers often send the difference before it bounces days later, leaving them liable for the full amount. Busy childcare providers, who are used to fielding sudden requests from parents, are a deliberate target.
The FTC is warning childcare providers to be wary of any new client who overpays and asks for money back. Banks can take days or weeks to detect a fake check, and once it bounces, the account holder — not the bank — is responsible for the loss.
What to do
- Never agree to refund the difference on a check that overpays you
- Wait for a check to fully clear (ask your bank how long that takes) before spending or forwarding any of it
- Be suspicious of new clients who overpay and rush you to send money back
- Verify a new client's identity and story independently before accepting payment
- Report suspected fake-check attempts to the FTC