$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
payroll check scam
Scammers posing as employers send fake payroll checks to new hires, then request the employee return a portion for equipment or supplies.
“check scam”
↑ 34%Key indicators
Usually targetsJob seekers
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
The victim is hired for a remote position after a brief online interview with no in-person contact.
2
The employer sends a payroll check and instructs the new hire to deduct equipment costs and return the remainder.
3
The check bounces and the victim loses the money they sent back.
What to do first
Research any new employer through your state's business registration database before accepting payment.
Related terms
fake payroll checkemployment check fraudfirst paycheck scamCheck and money order scamsEmailRisingJob seekersSmall business ownersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadafake payroll checkemployment check fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Daniel, 29, a job seekers, encountered what appeared to be a legitimate check and money order scams situation while using Email. The victim is hired for a remote position after a brief online interview with no in-person contact.
Step 2
What happened next was calculated: The employer sends a payroll check and instructs the new hire to deduct equipment costs and return the remainder.
Step 3
The pressure escalated quickly: The check bounces and the victim loses the money they sent back.
The outcome
Daniel realized something was wrong when new employer sends a check before any work has been completed. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research any new employer through your state's business registration database before accepting payment. Daniel's experience shows why new employer sends a check before any work has been completed and you are asked to return part of your paycheck for supplies or training materials are the clearest early warning signs.
How to identify it
- New employer sends a check before any work has been completed
- You are asked to return part of your paycheck for supplies or training materials
- Company has no verifiable physical address or phone number
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Research any new employer through your state's business registration database before accepting payment.
- ✓Never send money back to an employer from a check they issued to you.
- ✓Report fake employment offers to the FTC and your state labor board.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC reports employment scams were the second-largest fraud category by reported losses in 2024.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Research any new employer through your state's business registration database before accepting payment.
- ✓Never send money back to an employer from a check they issued to you.
- ✓Report fake employment offers to the FTC and your state labor board.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC reports employment scams were the second-largest fraud category by reported losses in 2024.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Job seekers, Small business owners
Geographic concentration
United States, Canada
Primary channel
Email — Check and money order scams
Why this group is vulnerable
Job seekers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC reports employment scams were the second-largest fraud category by reported losses in 2024.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about payroll check scam
How does the payroll check scam work?+
The victim is hired for a remote position after a brief online interview with no in-person contact. The employer sends a payroll check and instructs the new hire to deduct equipment costs and return the remainder. The check bounces and the victim loses the money they sent back.
What are the warning signs of payroll check scam?+
New employer sends a check before any work has been completed You are asked to return part of your paycheck for supplies or training materials Company has no verifiable physical address or phone number
What should I do if I encounter payroll check scam?+
Research any new employer through your state's business registration database before accepting payment. Never send money back to an employer from a check they issued to you. Report fake employment offers to the FTC and your state labor board.
Who is most at risk for payroll check scam?+
This scam primarily targets Job seekers, Small business owners. It is most commonly reported in United States, Canada and typically appears on Email.
Is payroll check scam on the rise?+
payroll check scam is currently on the rise with growing reports. It has been reported across US, CA. Last updated 2026-04-04.
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What to do first
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What to do first
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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