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Job scams

Fake cheque and money mule job scams

How fake cheque, overpayment, 'payment processing' and money mule job scams work, what happens to people who fall for them, and what to do and where to report.

  • Applies to: British Columbia and Ontario

Some job scams don't ask you to pay anything at the start. Instead, the "employer" sends you money. Then they ask you to send some of it somewhere else. These scams can leave you owing your bank money, and some can get you into legal trouble.

This guide explains two common types: fake cheque scams and money mule jobs. For the general warning signs of a fake job, read our guide to job scams that target first-time job seekers.

We checked these facts on October 12, 2026. Follow the links to the official pages for the latest details.

How a fake cheque scam works

The story changes, but the steps are usually the same:

  1. You are "hired" quickly, often by email or text, sometimes for a job you never applied for.
  2. A cheque arrives. It might be called a signing bonus, an advance payment, or money for a "mystery shopper" task.
  3. You are asked to deposit it in your own bank account.
  4. You are asked to send part of the money on, for example to a "graphics company" or another "supplier", or back to the employer because they "overpaid". They may ask you to use a money transfer service, gift cards, or cryptocurrency.
  5. The cheque bounces. It was fake. Your bank takes back the deposit, and the money you sent is usually lost.

The Competition Bureau says no real business will send you a cheque upfront and then ask you to transfer part of it back. It also warns that if you cash a fake cheque, your bank could make you pay back the money (Competition Bureau Canada).

The Canadian Anti-Fraud Centre (CAFC) lists several versions (CAFC):

  • Mystery shopper: You are "selected" as a mystery shopper and sent a cheque. You deposit it, then transfer a large part of the money to a bank account they name. You may also be asked to buy gift cards and send them the numbers.
  • Car wrapping: You are offered $300 to $500 a week to put a company logo on your car. A cheque arrives, and you are asked to pay fees from it to someone else.
  • Help cashing a cheque: The "employer" has a story about why they can't cash it themselves.

Why the money looks real

Banks don't always wait for a cheque to clear before you can use the money. The Financial Consumer Agency of Canada (FCAC) explains the rules for federally regulated banks (FCAC):

  • The first $100 of a cheque deposit must be available to you right away (or the next business day if you didn't deposit it with a teller).
  • Banks can hold the rest for 4 to 8 business days, depending on the amount and how you deposited it.
  • If the bank lets you use the money before the cheque clears, it is like a loan. If the cheque fails, you may have to pay the money back. You could also go into overdraft.
  • The usual hold limits may not apply to accounts open less than 90 days, or when the bank suspects fraud.

Credit unions follow their own rules. The lesson is the same everywhere: money showing in your account doesn't mean the cheque is real.

"Payment processing" and money mule jobs

In this scam, the job title sounds professional: payment processor, financial agent, or financial officer. Your job is to receive money in your own bank account, keep a small amount as "pay", and send the rest on, often to another country (CAFC: Money mule awareness).

The money is often stolen. The CAFC says it may come from hacked bank accounts or from other fraud victims. Sometimes you are told to send it on as Bitcoin (CAFC).

A person who moves stolen money like this is called a money mule. The CAFC warns that being a money mule can tie you into money laundering, and you could face criminal charges. Some money mules don't know they are part of a crime.

A real employer will never ask you to use your personal bank account to receive and pass on its money.

What happens to people who fall for these scams

  • You owe the bank. When a fake cheque bounces, the bank can take back the deposit. If you already spent or sent the money, you may have to repay it.
  • The money you sent is usually gone. The CAFC says cryptocurrency transfers usually can't be reversed (CAFC).
  • You could face a criminal investigation if you moved money for criminals.
  • You may be targeted again. If you lost money to fraud, someone may contact you and say they can get it back for a fee. The CAFC calls this recovery fraud. If someone asks you to pay to recover money you lost, it is a scam (CAFC).

Warning signs

  • You get a cheque or money before you have done any real work.
  • The amount is more than you were promised, and they ask you to return the extra.
  • You are asked to send money by a money transfer service or as cryptocurrency.
  • The job is to receive payments into your account for a company.
  • The pay is high for very little work.

What to do

If you haven't deposited the cheque: Don't. Stop contact with the "employer". The Competition Bureau's advice is simple: don't agree to cash a cheque for a job.

If you already deposited it:

  1. Don't send any money, even if they pressure you.
  2. Call your bank right away. Use the phone number on your bank card or the bank's official website. Tell them the cheque may be fake.
  3. Keep everything: the cheque, envelopes, emails, texts, and the job posting.

If you already sent money, or moved money for someone:

  1. Stop. Don't send or receive any more money.
  2. Call your bank.
  3. Contact your local police. The CAFC says victims should contact police as soon as possible (CAFC).
  4. Report it to the CAFC, as explained below.

Feeling embarrassed is normal. These scams are designed to look like real jobs, and reporting them helps protect other people.

Where to report

  • Canadian Anti-Fraud Centre: Report online through the Report Cybercrime and Fraud system, or call 1-888-495-8501 (toll-free), Monday to Friday, 10 a.m. to 4:45 p.m. Eastern time. You can report anonymously (CAFC). The CAFC wants reports even if you didn't lose money.
  • Your local police, if you are a victim.
  • The job site where you found the posting.

Next steps

Sources

Rules and wages change. These are the official sources we checked.

  1. Canadian Anti-Fraud Centre: Job scams
  2. Canadian Anti-Fraud Centre: Money mule awareness
  3. Canadian Anti-Fraud Centre: Impersonation and recovery fraud
  4. Canadian Anti-Fraud Centre: Report fraud and cybercrime
  5. Report Cybercrime and Fraud
  6. Competition Bureau Canada: Job and employment scams
  7. Financial Consumer Agency of Canada: Cashing a cheque