Eli5, how do checks work. Especially now that we can deposit them via phone now. What stops us from creating (e.g., photoshooting) fake checks all day.

Question

Eli5, how do checks work. Especially now that we can deposit them via phone now. What stops us from creating (e.g., photoshooting) fake checks all day.

In: Economics

Answer 1

In pretty sure, check fraud is a federal crime.

How they work is they look at the routing number and the account number.

The routing number is the number that tells you where to move the money from, and the account number is whose account at that bank to subtract that money from.

Since you’re depositing it, you then just need the amount. So if you are depositing a check for $100, they would take $100 out of the account number at the routing number and put it in your account.