| Check Fraud Scams |
| By Credit Federal |
Published
05/29/2009
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Fraud and Scams
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Scams come to consumers in different ways. Some of these include work at home opportunities, fake sweepstakes, lotteries, or internet scams. Scams also include getting cashier's checks, money orders, or emails from scammers asking consumers about collecting checks and sending money to them.
Consider this...
You receive a check in the mail for $5,000, and the sender says if you will send them back just $500 of it, you can keep the $4,500 balance. They may explain that you had won some sort of prize, and the reason you have to send back a portion of the check is so your identity can be verified or the money is needed to cover claim costs. Sounds like a good deal, eh?
It's not. And you're on the hook if you cash the check. Many consumers think that because they have made the deposit and the bank gave them money for the check that the check must be good and that it has cleared. Wrong. It can take a couple of weeks for a check to fully clear. So, you get a check from a scammer, you deposit it and return a portion of the check money to the scammer. A couple of weeks later the bank contacts you and tells you the check was bogus. The bank wants you to return ALL of the check money (not just the portion you kept for yourself).
Consumers may think that the bank would go after the scammer. This is not the case. Since you cashed the check, the bank wants you to pay back the full amount. Sadly, this is happening more often because Americans who don't have a job are looking online for some type of income. Scammers are online ready to pounce on such desparate people.
There are millions of Americans who are victims of fraud every year. The average cost to a consumer who was a victim is around $4,000. Most of the time the fraud becomes evident when it is far too late.
The Consumer Federation is trying to prevent check scams.
Think you're too smart to be a scam victim? Think again. Some people have been fooled TWICE by the same check fraud scam. When asked why they fell for it a second time, many stated that they thought the second offer was legit... even though it was exactly the same as the first... and even though the supposed "Issuer" (the account name on the check) was listed as a different company from that of the company who sent the check and to whom a percentage of the check was retured to.
Consumers need to be more aware of check scams. One of the best signs for fraud is that the scammer will ask for money for doing something that sounds too easy or too good to be true, or claims you won something which you never even registered for. Also, they may have a portion of your name or address misspelled, or there may be spelling and punctuation errors in the letter. They may say that a prize was won but money must first be sent to them so the prize can be claimed, or so your identity can be verified.
Consumers who have encountered possible scams should file a complaint report at www.ic3.gov/
Also, there are state and local consumer protection groups. The State Attorney Generals and the Federal Trade Commission can be alerted when fraud is suspected. Fraud is on the rise and unemployed consumers are being snared. Remember, never pay to receive a prize or cash checks to send money to scammers.
Download our award-winning, free checkbook register software.
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