The FTC says scammers impersonate parents and send fake “advance” checks that appear to clear before bouncing. Childcare providers end up responsible for money they refund or send back through payment apps.

The FTC is warning childcare providers about a fake-check scam in which fraudsters pose as parents and send an “advance” payment via check. According to the FTC, the check may initially appear to clear, which gives the scam credibility and pressures the provider to act quickly. After the provider refunds or returns money—often using wire transfers or payment apps—the deposited check ultimately bounces, leaving the provider stuck with the loss. The pattern, as described by the FTC, typically includes an urgent need for funds and a demand that the provider send back the difference or “overpayment.” Scammers also rely on time pressure and trust-building details to keep providers from verifying the payment through safe channels. The FTC notes that in these schemes the victim’s payout is not the only risk: any refund sent back after the check bounces can turn a seemingly small incident into a large financial hit. The FTC urges childcare providers to treat unexpected overpayments and “advance” checks with extreme caution, and to confirm payment legitimacy before releasing any funds or issuing refunds.