Certified check fraud-growing area for scam artists
17.9.14
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Certified check fraud is a growing area for scam artists.
There are several versions of this scam circulating in Arizona. The initial
contact can come through an unsolicited telephone call, over the
Internet or through the mail. One version of the scam is to include a
check (most of the time a cashier’s check) with a prize notice. The
notice says that the consumer has won a prize, but must pay a sub
-
stantial “tax” or “administrative fee.” The scam artist tells the con
-
sumer that the enclosed cashier’s check comes out of the winnings
and will cover the charges. The check looks real, but is not.
In a different twist, the scam artist may pose as a “buyer” for an
item over the Internet. The scam artist offers to pay with a U.S.
bank cashier’s check. Once the offer is accepted, the “buyer”
makes some excuse for sending a cashier’s check that is more than
the cost of the item and wants the seller to send the excess money
back to the scam artist. The cashier’s check is counterfeit, but it
takes the bank several days to discover this. In the meantime, the
consumer thinks they received a good check and sends the item as
well as the “extra” cash back to the scam artist.
Another variation is the “mystery shopper” scheme where consumers
are approached to be “mystery” or “secret” shoppers. Consumers
believe they are being hired to evaluate the effectiveness of a money
transfer service. The scam artist sends the consumer a cashier’s
check. The consumer is instructed to cash the check at their bank
and then visit a large retailer that offers money transfer services.
The consumer is told to pretend to be a customer wiring money to
a relative in another country. The consumer is often instructed to
wire most of the money and keep the rest as payment for acting as
a “mystery shopper.”
Certified Check Fraud
In all of these situations, the certified check looks real, but it is
not. The bank notifies the seller that the cashier’s check is coun
-
terfeit and the consumer is responsible for returning the money to
the bank.
Red Flags
•Instructions by the sender to deposit the check and then wire
money back to a third party.
There is usually no legitimate rea
-
son for someone who is giving you money to ask for money to
be wired back.
•Cashier’s or certified check made out for several hundred or
even several thousand dollars more than the purchase amount
of the product, despite the authentic looking logos from well
known corporations and banks.
Protect Yourself
•Use caution if cashing or depositing a cashier’s check from
an unknown source. Consumers are responsible for deposited
checks. When a check bounces, the bank deducts the amount
originally credited to the account. If there is not enough money
to cover it, the bank may take money from other accounts.
•Consumers cannot rely on the fact that the check was accept
-
ed for deposit by their financial institution as evidence of the
check’s authenticity. The check must go back to the originating
bank to clear. This process can take several days and, in the
case of an elaborate counterfeit, may take a few weeks. Ask
your financial institution about its policy regarding counterfeit
checks.
There are several versions of this scam circulating in Arizona. The initial
contact can come through an unsolicited telephone call, over the
Internet or through the mail. One version of the scam is to include a
check (most of the time a cashier’s check) with a prize notice. The
notice says that the consumer has won a prize, but must pay a sub
-
stantial “tax” or “administrative fee.” The scam artist tells the con
-
sumer that the enclosed cashier’s check comes out of the winnings
and will cover the charges. The check looks real, but is not.
In a different twist, the scam artist may pose as a “buyer” for an
item over the Internet. The scam artist offers to pay with a U.S.
bank cashier’s check. Once the offer is accepted, the “buyer”
makes some excuse for sending a cashier’s check that is more than
the cost of the item and wants the seller to send the excess money
back to the scam artist. The cashier’s check is counterfeit, but it
takes the bank several days to discover this. In the meantime, the
consumer thinks they received a good check and sends the item as
well as the “extra” cash back to the scam artist.
Another variation is the “mystery shopper” scheme where consumers
are approached to be “mystery” or “secret” shoppers. Consumers
believe they are being hired to evaluate the effectiveness of a money
transfer service. The scam artist sends the consumer a cashier’s
check. The consumer is instructed to cash the check at their bank
and then visit a large retailer that offers money transfer services.
The consumer is told to pretend to be a customer wiring money to
a relative in another country. The consumer is often instructed to
wire most of the money and keep the rest as payment for acting as
a “mystery shopper.”
Certified Check Fraud
In all of these situations, the certified check looks real, but it is
not. The bank notifies the seller that the cashier’s check is coun
-
terfeit and the consumer is responsible for returning the money to
the bank.
Red Flags
•Instructions by the sender to deposit the check and then wire
money back to a third party.
There is usually no legitimate rea
-
son for someone who is giving you money to ask for money to
be wired back.
•Cashier’s or certified check made out for several hundred or
even several thousand dollars more than the purchase amount
of the product, despite the authentic looking logos from well
known corporations and banks.
Protect Yourself
•Use caution if cashing or depositing a cashier’s check from
an unknown source. Consumers are responsible for deposited
checks. When a check bounces, the bank deducts the amount
originally credited to the account. If there is not enough money
to cover it, the bank may take money from other accounts.
•Consumers cannot rely on the fact that the check was accept
-
ed for deposit by their financial institution as evidence of the
check’s authenticity. The check must go back to the originating
bank to clear. This process can take several days and, in the
case of an elaborate counterfeit, may take a few weeks. Ask
your financial institution about its policy regarding counterfeit
checks.