A bearer check is a type of financial instrument that is payable to the person who physically holds it, known as the bearer. Unlike other checks that require endorsement or identification, a bearer check can be cashed or deposited by anyone who presents it at a bank or financial institution. This makes it a convenient but risky option, as it can be easily transferred without any formalities. Because bearer checks do not require the payee's name to be specified, they can be used for anonymous transactions. However, this feature also increases the potential for fraud and theft, as losing a bearer check means losing the funds associated with it. Therefore, it is essential to handle bearer checks with care.