Fake check scams are a fast-growing fraud that could cost citizens thousands of dollars. There are many types of fake check scams, but it all starts when someone gives a potential victim a realistic-looking check or money order and asks you to send cash in return.
New variations of fake check scams constantly pop up, so it's important to learn the warning signs to avoid becoming a victim.
- sudden riches
- foreign business offer
- work-at-home
- overpayments
- rental schemes
- love losses
Phony checks and money orders are so realistic-looking that even bank tellers are fooled. They may look like cashier's checks, checks from business accounts, money order and travelers or gift checks. The companies whose names appear on them may be real, but the checks have been dummied up without their knowledge. Even if you call the bank and learn that there is an account in the name of the person or company on a check, that doesn't mean it's valid. It's also tricky to confirm that a money order or cashier's check is real. Here are some sources to help identify counterfeits:
Federal law requires banks and credit unions to make the funds you deposit available within one to five days. Just because you can withdraw the money doesn't mean the check or money order is good. It can take weeks, even months, for counterfeits to be discovered. Banks, credit unions and check cashing services accept checks and money orders based on your identifications. They don't have any information about the source. You're responsible because you're in the best position to determine the risk of accepting the check or money order - you dealt with the person who gave it to you. You should also report a scam to the National Consumers League.
You can prevent becoming a victim by doing the following:
- Think about it. There is no legitimate reason why anyone would give you a check or money order and ask you to send cash anywhere in return.
- Be aware that just because you can get the cash quickly, doesn't mean the check or money order is good.
- Only cash a check or money order for a close relative or someone you've met in person and known for a long time.
Visit FakeChecks.org to learn more about fake check scams.
1/13/2008