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What to do if…
a cheque you deposited is flagged as counterfeit and the bank reverses the funds

Produced and maintained by PanicStation.org Published: Last reviewed: Editorial policy UK guide

Short answer

Contact your bank using the number in your banking app, on your card, or on the bank’s official website, and ask what happened and how to limit charges or restrictions. Do not send any refund, overpayment, shipping money, replacement payment, gift cards, crypto, or cash to the person who gave you the cheque.

Do not do these things

  • Do not send money back to the person who gave you the cheque, even if they pressure you, apologise, threaten you, or show screenshots.
  • Do not rely on funds shown in your balance until your bank confirms the cheque is finally paid or explains why it has been reversed.
  • Do not ignore secure messages, letters, app alerts, charges, overdraft notices, or account restriction notices from your bank.
  • Do not close the account in panic, because it can make fees, complaints, and access to records harder to sort out.
  • Do not share online banking details, card details, one-time passcodes, copies of new ID, or remote access to your device.

What to do now

  1. Contact your bank’s fraud, cheque, or disputes team using a trusted contact route. Ask them to confirm the reversal reason, whether the cheque was counterfeit, altered, or returned unpaid, whether your account is restricted, and whether any charges or overdraft interest have been triggered.

  2. Make clear that this was a cheque you received, not a cheque you wrote. Ask the bank to record that you may have been targeted by a fake-cheque or overpayment scam, and ask what evidence they want from you.

  3. Ask for written confirmation. Request a secure message or letter showing the amount, reversal date, cheque reference if available, return reason if available, any fees, and what the bank is doing next. Ask whether they can provide a cheque image or other return details.

  4. Limit the immediate damage to your account. If the reversal has made the account overdrawn, ask the bank whether it can pause, waive, or refund charges while the matter is reviewed. Move or reschedule non-essential outgoing payments only if you can do that safely without missing priority bills.

  5. Stop any linked deal or delivery that has not already happened. If you were selling goods, providing work, making a booking, or sending something on behalf of the payer, pause it now and do not agree to send the “difference”, pay a courier, or make a partial refund.

  6. Preserve the evidence. Keep the cheque if you still have it, the envelope, deposit receipt, screenshots, emails, texts, marketplace messages, bank messages, courier details, names, phone numbers, payment details, dates, and the amount involved.

  7. Report scam messages if they were part of the contact. Forward suspicious texts to 7726. Forward suspicious emails to report@phishing.gov.uk. Do not click links in those messages to check them.

  8. Report the fraud through the UK route for where you are. In England, Wales, or Northern Ireland, report cyber crime and fraud to Report Fraud online or by calling 0300 123 2040. In Scotland, report fraud to Police Scotland by calling 101. Keep the reference number.

  9. If you shared ID documents or enough personal details for someone to apply for credit in your name, consider Cifas Protective Registration. It is a paid service, currently £30 for two years, and it tells Cifas member organisations to carry out extra checks when your details are used. Genuine applications may take longer while it is in place.

  10. If the bank’s explanation, charges, restriction, or handling seems wrong, ask the bank to log a formal complaint and give you the complaint reference. If you are unhappy with the final response, or you do not receive a response within eight weeks, you can usually ask the Financial Ombudsman Service to look at it. You usually need to do that within six months of the final response letter.

What can wait

  • Deciding whether to take civil action against the person who gave you the cheque.
  • Explaining yourself to the scammer, arguing with them, or trying to prove the cheque was fake to them.
  • Switching banks or changing every account at once.
  • Making a full complaint bundle before you have the bank’s written explanation and reference numbers.
  • Deciding the long-term outcome for the sale, job, booking, or goods, unless something is still about to be delivered.

Important reassurance

This can happen to careful people. Fake-cheque scams rely on the confusing gap between a balance appearing to change and the bank later deciding the cheque is not payable. The useful move now is to stop any further payment leaving you, get the bank’s position in writing, and keep the evidence together.

Scope note

These are first steps for the first hours or days after a cheque deposit reversal. Later decisions about charges, complaints, debt, goods already handed over, identity protection, or recovery may need specialist help.

Important note

This guide is general information, not legal, financial, or professional advice. Bank processes and outcomes can vary, so check the bank’s written position before making irreversible decisions.

Additional Resources

Closely connected guides that may be useful during the same situation or its immediate aftermath.

About this guide

This guide was produced and is maintained by PanicStation.org using its published editorial process. Official and specialist sources are checked where relevant, and AI-assisted tools may be used for drafting, organisation, and consistency checks. The site operator remains responsible for publication, revision, and removal decisions.

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