Frequent check deposits in round numbers or for the same amount and checks written to individuals for large, even amounts might be indicators of check fraud.

• A. True
• B. False
• C. Not necessarily
• D. Sometimes

Answer: (A)

Red flags in check activity show up when deposits are made in round numbers or in the same amount repeatedly, and when checks are written to individuals for large, even amounts. These patterns are often used by fraudsters to disguise the source of funds, test an account, or move money in a controlled, predictable way, making fraudulent activity easier to slip through initial reviews. Because such regular, uniform amounts stand out from typical, varied transaction activity, banks and investigators treat them as warning signs worth closer scrutiny. While there can be legitimate explanations in rare cases, the regularity and sameness of these figures align with common fraud patterns, so the statement is true.