Posts Tagged ‘money transfer’
Fake Check Scams
March 10th, 2010
by Guest Blogger
[Today's guest blogger is Susan from the Consumer Federation of America.]
An official-looking envelope arrives in the mail with a check or money order for $20,000 inside. The letter says you have won $4 million in a sweepstakes or lottery. You just need to wire $3,000 for taxes to claim the rest of your winnings. Is this your lucky day?
No! It’s a fake check scam that will cost you thousands. These scams take many forms. You might unexpectedly receive notice that you are getting a grant or that a company wants to hire you to work at home as a mystery shopper. You might be selling something and the “buyer” sends you more than your asking price with instructions to wire the extra money back to him or to someone else.
- A fake check from an FTC investigation
No matter the story, fake check scams always involve someone giving you a genuine-looking check or money order and asking you to wire money somewhere in return. After you deposit the check and send the money, you will learn that it was phony. The crook will have the money, and you will owe it back to your bank or credit union.
According to a survey by the Consumer Federation of America, many people mistakenly believe that banks and credit unions confirm that checks are good before posting that money to the account. That’s not how it works. Funds from deposited checks are available within days, but a counterfeit check can take weeks to detect. You’re responsible for checks you deposit because you’re in the best position to know if the person who gave it to you is trustworthy.
Believe it or not, losing thousands of dollars might not be the worst part of a fake check scam. If there isn’t enough money in your account to cover the check, you could face collection or be sued. Your account may be frozen or closed, and you could be reported to a database of checking account abusers, making it difficult to open another account. Some victims are even charged with check fraud.
Remember, there is no legitimate reason for anyone to give you a check or money order and ask you to send money somewhere in return. If that’s the deal, it’s a scam. Check out our website for more information about these scams and how to protect your hard-earned money.
Tags: check, lottery, money transfer, mystery shopper, wire transfer
Posted in Banking, Scam Watch | 6 Comments »