COUNTERFEIT CHECK SCAMS
HOW THE SCAM WORKS
You receive a letter telling you that you have won a Lottery. It may be a foreign lottery like the Canadian or English Lottery or the Irish Sweepstakes. The check looks like a legitimate cashier's check.
You are told to cash the check and wire a portion back to the sender to cover handling fees or taxes.
Your bank may even allow you to deposit the check. Just because the bank allows you to deposit it, does not mean that the check is legitimate. The problem occurs when the bank receives notice that the check is counterfeit and you have already wired the money. If you used any of the funds from the counterfeit check, the bank will require you to pay back the funds.
By federal law, banks are required to make funds available to you from certain types of checks (i.e. cashier's checks, certified checks) at the opening of the business day after you deposit the check. The banking is making the money available before they find out the check is counterfeit.
TO AVOID THIS SCAM YOU SHOULD ALWAYS REMEMBER:
- If you play a foreign lottery, by mail, phone or over the internet you are in violation of federal law.
- If you purchase one foreign lottery ticket, expect many more bogus lottery or investment "opportunities", because you will be placed on what is called a "sucker list", that fraudulent telemarketers buy and sell.
- Never disclose credit card, bank or personal information to someone you do not know or are unsure of.
- Legitimate lotteries do not select winners at random. You have to participate in a lottery to win
- Legitimate lotteries will not require you to pay to collect winnings.
VARIATIONS
OVERPAYMENT SCAMS
This scam targets individuals selling through the Internet or classified ads. In this scam the buyer offers to make the purchase using a check that is for more than the agreed price. The buyer ask that you wire the difference to him/her and may suggest that you keep an additional amount "for your troubles"
TO AVOID THE SCAM
Don't accept a check for more than the price that you agreed upon.
- Consider using an escrow service or online payment service (make certain that you have checked the service out before hand)
Ask for checks from local banks. If this is not possible, call the bank
- the check is drawn on and ask if it is valid.
SECRET SHOPPER SCAMS
In this scam you are asked to evaluate the effectiveness of a money transfer service. You receive a check with instructions to deposit it and withdraw cash, and then transfer the money through a specified money transfer service to be transferred to another individual.
Scam artists will try to pressure you to act immediately. Do not respond.
HOW TO PROTECT YOURSELF
IF YOU ARE ASKED TO CASH A CHECK, TO WIRE MONEY OR SEND A MONEY ORDER TO AN UNKNOWN PERSON FOR WHAT EVER REASON, ASSUME THAT IT IS A SCAM.
IF YOU DEPOSIT A CHECK FROM AN UNKNOWN PERSON OR ORGANIZATION, DO NOT DRAW ON THE FUNDS UNTIL THE CHECK HAS ACTUALLY CLEARED THE BANK AND THE BANK SAYS THE FUNDS ARE AVAILABLE.
MORE INFORMATION REGARDING CHECK SCAMS CAN BE OBTAINED FORM THE FOLLOWING SOURCES:
WWW.FAKECHECKS.ORG
This is a sight maintained by the US Postal Service and other government agencies to educate Consumers about check fraud.
WWW.FTC.GOV
Web site for the Federal Trade Commission
http://www.ic3.gov/
Internet Crime Center, maintained by the US Government, and where complaints can be filed.
Great Basin Federal Credit Union
fraud@greatbasin.org
