Beward of fraudulent check scams


Beware of fraudulent check scams

With the downturn of the economy, check scams have become more prevalent. According to the National Consumers League, the number one scam in 2009 was fake checks.

There are many credible resources from which these checks can be found. Here are a few sources: Craigslist, Phishing emails, lottery's and job opportunity sights, just to name a few. Most likely, if it's too good to be true, it's probably a scam.

Here are 5 situations that are major red flags to fraudulent check scams. Knowing about them could save you thousands of dollars.

1. If someone gives you a check or money order and asks you to send money somewhere in return, it’s a scam. That is not how legitimate sweepstakes operators or other companies operate. If you have really won, you will pay taxes directly to the government. Legitimate mystery shopper or account manager jobs don’t involve using money transfer services to send money.

2. A familiar name doesn’t guarantee that it’s legitimate. Crooks often pretend to be from well-known companies to gain people’s trust. Find the company’s contact information independently, online or through directory assistance, and contact it yourself to verify the information.

3. The check or money order may be fake even if your bank or credit union lets you have the cash. You have the right to get the cash quickly, usually within 1-2 days, but your bank or credit union can’t tell if there is a problem with the check or money order until it has gone through the system to the person or company that supposedly issued it. That can take weeks. By the time the fraud is discovered, the crook has pocketed the cash.

4. When the check or money order bounces, you will have to pay the money back to your bank or credit union. You are responsible because you are in the best position to know if the person who gave it to you is trustworthy. If you don’t pay the money back, your account could be frozen or closed, and you could be sued. Some victims are even charged with fraud.

5. Sending money using a money transfer service is like sending cash – once the crook picks it up you can’t get it back from the service. It’s not like a check that you can stop after you’ve given it to someone or a credit card charge that you can dispute. But if the money has not been picked up yet, you may be able to stop the transaction. Contact the money transfer service immediately if you think you’ve been scammed.

Fraudulent check scams is only one of many scams. To learn more about other scams and how to avoid getting scammed, click here to go to our Fraud Preventions page.