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Fraud EducationFake Check Scams
How do fake check scams work? There are many variations, but all involve someone asking you to deposit a realistic-looking check and send money elsewhere in return.
In a typical lottery scam, the fraudster promises a sweepstakes award to an unsuspecting victim - as soon as you cover a few thousand dollars in fees with the "advance check" they send you. Once you deposit the check they send you, they want you to wire all or a portion of the money to them. Once you wire that money, there's no getting it back. And when the check you deposit is returned as fraudulent, you owe the credit union or bank where you deposited the check. Remember, you're responsible for any item you deposit whether or not you knew it was fraud.
In the scheming suitor scam, the con artist finds their way into your heart, by befriending you, telling you they love you or promising to be intimate with you. Oh, and by the way, if you could just cash this check I'm sending you and wire me the money, I'll come to see you. This scam actually takes some time to pull off as some of the con artists will work on you for weeks before they ask you to cash a check for them. If any online "friend" asks you to cash a check for them, just tell them "No." If you're too embarrassed to refuse them, then lie to them and tell them that your financial institution refused to accept the check. Then watch them fade from being your online friend.
The work at home scam consists of con artists posing as employers. They "hire" you to work from home and ask you to help them "process payments for clients" as part of your job. You end up depositing bogus checks and sending the money back to them, minus your "pay." This isn't how legitimate companies do business.
The foreign business offer starts with you being offered a foreign business deal. You'll be sent a check or money order and instructed to cash it and send back a portion for taxes, customs, processing, legal fees or other expenses that must be paid before they can send you the rest.
The overpayment scam starts with a crook offering to buy something you are selling, but they "accidentally" send you a check for more than the selling price. They then ask you to wire them or another person the difference. They claim to have sent the wrong amount in error and want you to "refund" them the difference to avoid having you send back the check and them issuing a new one.
There is no valid reason for a person who is giving you money to ask you to wire some of the money back to them. If you are doing business with strangers, have them send you a guaranteed funds check drawn off of a financial institution with a local branch for the exact amount. You can then take the check to that financial institution and have them cash the check for you.
You can report fake check scams to the National Consumers League Fraud Center at fraud.org.
Remember, no matter how you come into possession of a check, if you cash or deposit it, you are responsible to the financial institution if the check is returned for any reason.
COMMON SENSE TIPS ...
To AVOID becoming a victim of Phishing Scams:
Be suspicious of any email with urgent requests for personal financial information unless the email is digitally signed (you can't be sure it wasn't forged or "spoofed"). Phishers typically : (1) include upsetting or exciting (but false) statements in their emails to get people to react immediately; (2) ask for confidential information such as user names, passwords, credit card numbers, social security numbers, account numbers, etc.; and (3) do not personalize the email message (while valid messages from your credit union will be).
Don't use the links in an email to get to any web page if you suspect the message might not be authentic. Instead, call the company on the telephone, or log onto the website directly by typing in the web address in your browser.
Avoid filling out forms in email messages that ask for personal financial information. You should only communicate information such as credit card numbers or account information via a secure website or the telephone.
Always ensure that you're using a secure website when submitting credit card or other sensitive information via your web browser. To make sure you're on a secure web server, check the beginning of the web address in your browsers address bar - it should be "https://" rather than just http://.
Consider installing a web browser tool bar to help protect you from known phishing fraud websites.
Regularly log into your online accounts and don't wait for as long as a month before you check each account.
Regularly check your financial institution, credit, and debit card statements to ensure that all transactions are legitimate. If anything is suspicious, contact your financial institution(s) and card issuers.
Ensure that your browser is up to date and security patches applied.
Always report "phishing" or "spoofed" emails to the following groups:
Please click on the link in the Document Box on the right for what to do if you've given out personal financial information.
Protect yourself against all types of fraud. Liberty's Fraud Education Series provides education on Identity Theft, check and credit card fraud, and other consumer scams.
To learn how to protect yourself from fraud, click on the icon below to enter Liberty's Fraud Education Series:
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