FTC refund checks are real, but scammers use fake ones to steal from you
The Federal Trade Commission does send refund checks to people who were harmed by companies the agency took action against. Those checks are real. But scammers also send fake FTC checks to trick people into giving up money or personal information. The difference comes down to a few specific details you can verify before you cash anything.
A legitimate FTC refund check will have your name on it, come from a real settlement the FTC actually ran, and arrive unsolicited in your mailbox. You do not have to do anything to receive it — the FTC finds you through court records, complaints, or company databases. If someone contacted you first asking you to claim a refund, or if the check arrived after you paid money to someone promising to help you get it, that is a red flag.
Key Takeaways
- The FTC sends real refund checks to people harmed by companies in settled cases, and you do not have to apply or pay anyone to receive one.
- Scammers send fake FTC checks that look official but ask you to call a number, visit a website, or send money back to "verify" or "activate" the refund.
- You can verify a real FTC refund by checking the FTC's official settlement website or calling the FTC's consumer response center at 1-877-438-4338.
- Never give personal information, send money, or call a number printed on an unsolicited check — legitimate FTC refunds require nothing from you.
- If you received a check you think is fake, report it to the FTC at reportfraud.ftc.gov and to your bank.
How to verify an FTC refund check before cashing it
Start by checking the FTC's official settlement page at ftc.gov/news-events/news/2024 (or the current year). The FTC publishes every settlement it runs, including the company name, what the settlement covers, and the timeline for refunds. Search for the company name on the check or in your memory — if you do not find a settlement that matches what you received, the check is likely fake.
If you find a settlement that looks right, look for the claims administrator's name and contact information on the FTC's page. The claims administrator is the third-party company that actually mails the checks. Call that number directly — do not call any number printed on the check itself. Ask them whether a check was issued to your name and address. They will have records of every check sent out.
You can also call the FTC's consumer response center at 1-877-438-4338 and ask them to verify the settlement and the check. They can tell you whether the FTC actually ran that case and whether checks have been mailed. This call costs nothing and takes a few minutes.
Red flags that signal a fake FTC check
A fake check will often ask you to call a number, text a code, or visit a website to "claim" or "activate" your refund. Real FTC checks do not require you to do anything. If the check came with instructions to contact someone, or if the check itself has a phone number or website printed on it, that is a scam. The FTC does not ask you to verify your identity or activate money that is already yours.
Another common scam is a check that arrives after you paid someone to help you get an FTC refund. If you sent money to a company or person claiming they could recover money for you, and then a check arrived, the check is almost certainly fake. The scammer sent it to make you think their service worked, so you will not ask for your money back or report them.
Fake checks may also have spelling errors, blurry logos, or odd formatting. Real FTC checks are printed by professional claims administrators and look clean and official. If something looks off about the design or printing, that is worth investigating further before you deposit it.
What happens if you deposit a fake FTC check
If you deposit a fake check into your bank account, your bank will eventually discover it is counterfeit — usually within two to four weeks. When that happens, the bank will reverse the deposit and charge you a fee, typically $25 to $35. If you already spent the money, you will owe your bank the full amount plus the fee.
If the fake check came with instructions to send money somewhere or to buy gift cards and send the codes, you have lost that money. Gift card codes cannot be reversed, and wire transfers are nearly impossible to recover. That is why scammers use these methods — once the money leaves your account, it is gone.
If you deposited a fake check and realized it too late, contact your bank immediately and tell them it was counterfeit. Then report the scam to the FTC at reportfraud.ftc.gov. The FTC uses these reports to track scam patterns and shut down the criminals behind them.
How real FTC refunds are actually delivered
The FTC mails checks directly to people's addresses without asking them to do anything first. You do not need to claim the refund, activate it, or prove you are who you say you are. The FTC already knows who was harmed because it has court records, company customer lists, or complaints filed with the agency. If you were part of a case, a check will arrive in your name.
The check will come from the claims administrator, not from the FTC itself. The envelope will have the claims administrator's name and address on it. The check itself will have the FTC logo and the settlement name printed on it. If you are unsure, you can call the claims administrator's number listed on the FTC's settlement page and ask them to confirm the check is real.
Real FTC refunds are usually mailed in waves. If a settlement covers thousands of people, checks may go out over several months. If you think you should have received a check but have not, you can contact the claims administrator to ask about the status. They will tell you whether your name is in the system and when your check should arrive.
What to do if you think you received a fake check
Do not cash it. Do not call any number on the check. Do not visit any website printed on it. Instead, set the check aside and verify it using the steps above — call the FTC or the official claims administrator.
If you are certain the check is fake, report it to the FTC at reportfraud.ftc.gov. You can also report it to your local police department and to your bank. Include as much detail as you can: the company name on the check, the settlement amount, the date you received it, and any instructions that came with it. These reports help law enforcement track down the scammers.
If you already deposited the fake check or sent money in response to it, report that too. Tell the FTC and your bank exactly what happened and how much money you lost. Your bank may be able to reverse some charges, and the FTC may be able to help you recover money if they shut down the scam operation.
Frequently Asked Questions
Can I search for FTC settlements by company name?
Yes. Go to ftc.gov and use the search box to look for the company name. The FTC's settlement pages list the company, what it did wrong, the refund amount, and the claims administrator's contact information. If you cannot find the company, the check is likely fake.
What if the check is real but the amount seems too small?
Settlement refunds are divided among all the people harmed. If thousands of people were affected, each person's share will be smaller. The claims administrator's website usually shows how much each person gets. If the amount does not match, contact the claims administrator to ask why.
Do I have to pay taxes on an FTC refund check?
No. FTC refund checks are restitution, not income, so you do not report them to the IRS or pay taxes on them. If you receive a 1099 form for an FTC refund, contact the claims administrator and ask them to correct it.
What if I lost the check or it never arrived?
Contact the claims administrator listed on the FTC's settlement page. They can tell you whether a check was mailed to your address and can reissue it if it was lost. You may need to provide your current address and a copy of your ID.
Can scammers use real FTC settlement names on fake checks?
Yes. Scammers research real FTC settlements and print fake checks using the real settlement name and logo to look official. That is why you must call the claims administrator directly to verify, rather than trusting the name on the check.