Identifying Fake Check Scams...

With an influx of online shopping comes a greater risk of fraud. Please be aware of the many fraudsters out there trying to earn some easy money. Although they use many different tactics, in this issue, we will address fake check scams.

You’ll most likely find these fraudsters on the internet when searching for jobs, selling products, or even through a companion. A person whom you haven’t met in person will ask you to deposit a check. It’s usually for more than they owe you, and it’s sometimes for several thousand dollars. They’ll tell you to send some of the money back to them or to another person. They always have a good story to explain why you can’t keep all the money, such as that you need to cover taxes or fees for a prize, buy supplies for a job, send back money they overpaid, or something else. However, anytime you deposit funds from this type of transaction and they request something be sent back in return, it’s a scam!

These fraudsters often use fake checks to try to get your money. They generally look just like real bank checks, even to credit union employees. Most times, they are printed with the names and addresses of legitimate financial institutions. They may even be real checks written on bank accounts that belong to someone whose identity has been stolen. By law, credit unions have to make deposited funds available quickly, usually within two days, unless they consider the check to be fraudulent. When the funds are made available in your account, the bank may say the check has “cleared,” but that doesn’t mean it’s a good check. Fake checks can take days, or even weeks, to be discovered! By that time, the fraudster has any money you sent, and you are responsible for paying the money back to the credit union.

Mystery Shopping.

These fraudsters will hire you to be a mystery shopper. You’ll get a fake check to deposit into your personal account and be asked to rate the customer service skills of a store employee. You’ll then be asked to buy gift cards, money orders, or wire transfers and send these funds to someone else. Once you send the funds, they’re gone.

Claiming prizes.

A sweepstakes says you’ve won and gives you a check. They tell you to send them money to cover taxes, shipping and handling charges, or processing fees, but that’s not how legitimate sweepstakes work.

Overpayments.

People buying something from you online “accidentally” send a check for too much and ask you to refund the balance.

Purchase of a Product or Service

You respond to an offer for car wrap advertising. The company tells you to deposit a check and then send money to decal installers. However, you realize that the installers aren’t real, and now your money is gone.

Companions.

These fraudsters will pretend to be someone they’re not and get involved in an online relationship. They will send you a check to help cover the costs of moving them to your area. You deposit the check; send the funds to help them move; and they disappear along with your money.

The easiest way to avoid being scammed is to not rely on money from a check unless you know and trust the person who sent it, even if it looks real. So, never deposit a check and use those funds to send gift cards, money orders, or wire transfers. Always notify a credit union employee if you are unsure of who sent the check. If you have any questions, we would be happy to hold the check for a longer period of time. Please be aware that if anyone ever sends you a check and asks for money back, you’re likely dealing with a scammer! Protect yourself—when in doubt, hold the check.