Avoid Check/Money Order Scams
Beware of these mail, email and fax scams that can leave you owing money!
What You Should Know:
Fake Check Scams Can Leave YOU Holding the Bag!
If someone you don't know wants to pay you by check...but wants you to wire some of the money back, beware! It is most likely a scam that could cost you thousands of dollars. There are many variations of this fake check scam. It usually starts with someone offering to:
Give you the first installment on the millions you'll receive for agreeing to transfer money from a foreign country to your account for safekeeping;
Buy something you advertised;
Give you an "advance" on a sweepstakes you've won.
The scammers often claim to be outside the US, saying they cannot pay you directly, and that they will have someone who owes them money send you a check or money order.
The amount of the check or money order may be more than you are owed, so you are instructed to deposit it and wire the balance to the scammer or to someone else. Or you are told to wire some of the money back to pay a fee to claim your "winnings." In either event, the crooks send a phony check or money order with instructions to deposit it in your account. When you check your balance, it looks like the funds have arrived. After you have wired the money back to the scammer, you learn that the check or money order has bounced--you are left holding the bag!
Bounced Checks Can Cost You
These fake checks and money orders look so real that even credit union tellers may be fooled. Just because you can withdraw the money doesn't mean the check is good. Forgeries can take weeks to be discovered.
CAUTION:
It is important to keep in mind that under the law, you are responsible for the checks and money orders you deposit because you are in the best position to determine how risky the transaction is. When a check or money order bounces, you owe your financial institution the money you withdrew.
How Scammers Find Their Victims
Fake check scammers use a variety of sources to identify their victims. They:
scan newspaper and online advertisements for people listing items for sale
check postings on online job sites from people seeking employment
place their own ads with phone numbers or email addresses for people to contact them
call or send emails, letters or faxes to people randomly, knowing that some will take the bait.
What You Should Do:
There is no legitimate reason for someone who is giving you money to ask you to wire money back - that is a clear sign of a scam. If someone you do not know wants to pay you for something, insist on a cashiers check for the exact amount, preferably from a local financial institution or one with a branch in your area.
If you think someone is trying to pull a fake check scam, don't deposit it -- report it! Contact the National Consumer League's National Fraud Information Center, www.fraud.org or (800) 876-7060. There are also more detailed tips about fake check scams in the telemarketing and Internet fraud sections of the Web site.