Can You Go To Jail For Cashing A Bad Check?

What is a Bad Check?

A bad check is a payment method that is fake, fraudulent, or attached to a bank account that doesn’t have sufficient funds to cover the transaction (NSF). When you deposit a check, the bank advances the money before the funds are fully verified from the other party’s account.

If the check later “bounces,” the bank will hold the payee (you) responsible for repaying any money already withdrawn and used. Bad checks can be intentional, such as a scammer using a fake account number, or accidental, due to insufficient funds.

A check may also be considered bad if the signature is fake or altered. If you have cashed a bad check and are worried about the legal consequences, call George Reres Law, P.A. today at 954-543-1186 for more information.

What Are Online Payment Scams?

Online payment scams often target remote workers or people selling items by sending a fake or fraudulent check for a higher amount than needed. This common scheme takes advantage of the time it takes for a check to officially clear.

Scammers pretend to hire workers or buy items, sending a check (a bad check) to cover the cost plus extra for “equipment” or “shipping.” The scammer then asks the victim to immediately deposit the check and repay the “overpaid” amount using a wire transfer or other irreversible method.

Because the check is fake, it inevitably bounces, and the victim is held liable by their bank for the entire amount withdrawn. Since scammers often use fake contact information, tracking them down is nearly impossible.

What happens if someone writes you a bad check and you cash it?

If a bad check is written to you and you cash it, the first consequence is that you will have to pay the bank back for any money you withdrew. This happens when the check “bounces” because of insufficient funds, a fake signature, or if the check was stolen.

If the bank has no reason to believe you knew the check was worthless, repaying the funds is usually the end of the matter. However, if the bank or police suspect you knew the check was bad and cashed it anyway (intent to defraud), you could face fines and jail time.

Seeking help from an attorney immediately is essential. An experienced lawyer can help you explain your circumstances to the bank and law enforcement to avoid criminal charges being brought against you for cashing a bad check.

When Are You Likely To Be Arrested?

You are unlikely to be arrested for a single instance of cashing a bad check if you were unaware it was fraudulent. The bank’s primary concern is recovering their money.

However, if this happens two or more times, or if the circumstances appear suspicious, the bank might investigate your check-cashing habits. The police will then determine if you had prior knowledge that the check was bad, which is the key element for criminal charges.

For instance, receiving a check significantly larger than the agreed-upon amount and cashing it may be viewed as suspicious. You could also be in legal trouble if the person who wrote the check is a known offender or if they suggested the funds were not available.

What Are the Most Common Types of Check Fraud?

Check fraud covers a range of illegal acts involving checks, all of which carry severe penalties, including jail time and hefty fines for those convicted. Law enforcement officers look for evidence of criminal intent in these cases.

The most common types of check fraud include:

• Counterfeiting: Printing entirely fake checks.
• Forgery: Using a fake signature on a check.
• Check Washing: Chemically removing or altering the ink and data on a check.
• Paper Hanging: Writing checks on bank accounts that have been closed.
• Check Kiting: Fraudulently accessing funds from one account before the bank can verify funds from another account.
• Theft: Stealing checks (including stolen checks) and using them fraudulently.
• Payroll Fraud: Misusing or forging another person’s paychecks.

If you are concerned about being charged with check fraud, contact an attorney today.

What Can You Do After Cashing a Bad Check?

If you unknowingly cashed a bad check, the most important immediate step is to pay the bank back to resolve your debt and minimize the chance of further action. Once the bank is repaid, you should immediately contact the person who wrote the check to determine if they made an error or if they scammed you.

If you believe you have been the victim of a scam, file a police report. This creates an essential paper trail and demonstrates that you were a victim, which is crucial evidence if anyone attempts to press criminal charges against you in the future for cashing a bad check.

If the police have contacted you about a bad check that you cashed, you need to hire a criminal defense attorney immediately to avoid jail and fines. Call George Reres Law, P.A. at 954-543-1186 or fill out an online form to talk to a lawyer today.