In FY 2024–25, overall banking frauds in India rose sharply to ₹36,014 crore—nearly triple the amount reported in the previous year. While digital scams captured most headlines, old‑fashioned methods like fake cheques continue exploiting gaps.
You receive a cheque for ₹20,000 as an advance payment. It looks genuine, so you send the product or start the service. Soon after, the cheque bounces and you’re left with nothing.
Fake cheque scams have become increasingly common in India, targeting everyone from small business owners to job seekers. These fraudsters exploit the time gap between cheque deposits and clearing, tricking victims into believing they’ve received legitimate payments. What appears to be genuine money quickly turns into financial loss and legal complications.
This guide explains how fake cheque scams work, how to identify a fake cheque, red flags to watch out for, and practical steps to protect yourself.
What Is a Fake Cheque Scam?
A fake cheque scam is a type of cheque fraud where someone uses a forged, stolen, or altered cheque to trick you into sending money, goods, or providing services—before the cheque bounces or is identified as fake.
These scams often occur in job offers, online sales, or refund frauds. The cheque may look genuine and appear to be in process, but it eventually fails to clear. Once the bank confirms the cheque is fake, the deposit is rejected, and no funds are credited – leaving you responsible for the loss.
How Do Cheque Scams Work?
Cheque scams are designed to appear legitimate until it’s too late. In most cases, the fraudster issues a high-value cheque and convinces you to send a partial refund, release goods early, or provide services in advance.
The cheque looks authentic and is deposited like any other. But due to the bank’s clearance delay, you only discover it’s a counterfeit cheque or linked to a closed or fake account after you’ve already acted on it. By then, the scammer is untraceable. This type of bounced cheque fraud is common in fake job offers, online purchases, and loan settlement scams.
Red Flags to Spot a Fake Cheque
Knowing how to identify a fake cheque starts with spotting unusual patterns. Here are key warning signs to watch for and why they matter:
| Red Flag | Why It’s Suspicious |
| Overpayment with a refund request | Scammers often send more than required and ask you to return the excess—it’s a classic trap. |
| Pressure to deposit and send money urgently | They want you to act before the cheque bounces or is flagged as fake. |
| Poor printing or mismatched signature | Indicates tampering or use of a forged cheque template. |
| Blurry or incorrect bank details | A sign the cheque may have been copied or digitally altered. |
| Cheque from an unknown sender | If you can’t verify the person or company, it’s likely a scam. |
Real-Life Examples of Cheque Scams
1. ₹6.05 Lakh Cheque Scam in a Fake RBI Job Offer
In Navi Mumbai, a retired army officer lost ₹6.05 lakh in a scam involving a fraudulent cheque. The accused, Sadanand Bhosale, was working as a security guard at the RBI’s Belapur branch when he approached the ex-serviceman during a routine visit.
Noticing his ID, Bhosale offered him a security guard position at RBI in exchange for payments covering medical tests, list inclusion, and service verification. Over a year, the victim transferred ₹6.05 lakh.
When suspicions arose, the victim confronted Bhosale, who issued a cheque as repayment—but it bounced due to insufficient funds. Further inquiry revealed Bhosale had conned multiple others with fake job offers and bogus cheques. Police are actively searching for him.
2. ₹11 Lakh Fraud Using Forged Signatures on Genuine Cheques
In Kolkata, two men—Sejan Taj and Shahbaz Raja—scammed a major electronics retailer out of ₹11 lakh by using forged signatures on original cheques. They visited the company’s Rajarhat and Chinar Park outlets, selected high-value items like iPhones and MacBooks, and paid using private bank cheques.
Due to the bank’s temporary credit display before final clearance, the store assumed the payments were successful and handed over the products. Later, the cheques bounced due to signature mismatches, and the credited amounts were reversed.
After being duped twice, the retailer alerted police when the duo visited another outlet. They were caught during the third attempt, and the stolen gadgets were recovered from a New Town flat. One of the cheques they used earlier, worth ₹5.2 lakh, was also found to be fake and had bounced.
What to Do If You Receive a Suspicious Cheque?
If you receive a cheque that seems unusual or unexpected, follow these simple steps to stay safe:
- Do not deposit the cheque immediately, even if it appears genuine. Always wait until you have confirmed its authenticity with the issuing bank.
- Contact the bank that issued the cheque using official contact details. Ask them to verify whether the cheque is valid and active.
- Confirm the sender’s identity through trusted and reliable sources. Do not rely on just an email ID or a phone number provided by the sender.
- Never send any goods, offer services, or refund money before the cheque has fully cleared. Scammers count on you acting before the cheque bounces.
- Carefully check the cheque number, account holder’s name, and other details. If anything looks incorrect, mismatched, or suspicious, do not proceed.
How to Report a Cheque Fraud in India?
If you think you’ve received a fake cheque or been tricked in a cheque scam in India, act quickly. Follow these simple steps to report cheque fraud and limit the damage:
- Inform your bank immediately. Share the transaction ID, cheque copy, and any other details to help them block or trace the transaction.
- File a complaint on https://cybercrime.gov.in and submit a detailed report along with evidence.
- Lodge an FIR at your nearest police station. Carry a copy of the cheque, your bank statement, and any chat or email communication related to the scam.
How to Protect Yourself from Cheque Scams?
To avoid falling victim to cheque scams, follow these basic safety practices:
- Wait until the bank fully clears the cheque before you send any money or goods. Don’t trust the initial credit alert—cheques can still bounce later.
- Avoid accepting cheques from strangers in online deals. If the sender is unknown or unverified, it’s safer to refuse the transaction.
- Try to use e-mandates or UPI-based payments whenever possible. These are faster, traceable, and less prone to fraud.
- Never share sensitive information or refund any money until the cheque is fully cleared. Scammers often push for quick action.
- If you accept cheques for your business, always check for a watermark and the MICR line at the bottom. These features help you spot fake or tampered cheques.
Conclusion
If someone offers you easy money or overpays without reason, stay alert—if it sounds too good to be true, it probably is.
Cheque scams are becoming more common, especially in online sales, job offers, and urgent payment situations. Fraudsters often rely on your quick response before a cheque bounces or gets flagged.
To stay safe, use secure digital payment methods like UPI or verified bank transfers—especially when dealing with strangers. Avoid accepting cheques unless absolutely necessary, and always wait for full clearance before acting.
FAQs
Q1. How can I verify if a cheque is real?
Call the issuing bank using the official number listed on their website. Also, check the cheque for a watermark, a clear MICR code, and correct account details.
Q2. What happens if I unknowingly deposit a fake cheque?
The cheque may initially appear credited, but once the bank detects it’s fake, the amount will be reversed.
Q3. Can I recover money lost through a bounced cheque scam?
Recovery can be difficult, especially if the scammer disappears. However, you should report it immediately to your bank, cybercrime portal, and local police.
Q4. Are cheque scams still common in India in 2025?
Yes, cheque scams are still happening, especially in online sales, fake job offers, and refund scams.
Q5. How soon does a fake cheque bounce after deposit?
A fake cheque can bounce within a few hours or take a few working days, depending on the bank’s clearance process.
