Bounced / Forged Cheque Fraud

Bounced cheque fraud involves presenting a cheque that will not clear — either because it is counterfeit, drawn on a closed account, altered, or issued from a stolen chequebook. The fraudster relies on the gap between when a bank makes funds 'available' and when the cheque actually clears (several business days), using that window to obtain goods or cash before the fraud is discovered.

Forged cheques often look convincing because fraudsters can print high-quality replicas using widely available design software. Cashier's cheques and money orders are frequently faked in overpayment scams because victims assume they are as good as cash.

Banks may release funds before a cheque formally clears, and consumers are liable for returning those funds if the cheque bounces. Never assume a cheque has cleared just because your bank shows the funds as available — wait for formal clearance confirmation, especially for large or unexpected cheques from people you do not know well.