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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 maybe more than you 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 look so
real that even credit union tellers may be fooled. Under federal law, financial
institutions must make the funds you deposit available quickly—usually within
one to five days. Just because you can withdraw the money does not 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 e-mail addresses for people to contact them
-
call or send
e-mails 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 Consumers League's National Fraud Information
Center, www.fraud.org or 1-800-876-7060.
There are also scams in the telemarketing and Internet fraud sections of the
Web site.
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