Priceless Reminder From Consumer Watchdogs: Don't Get Sucked Into Check Scams
By: Grace Cook
Check it more than twice. When it comes to checks, it pays to be cautious no matter what the amount.
No matter what the state of the economy is, scam artists are always in business. Apparently, one of their most profitable tricks involve some check-related hocus pocus that practically empty the pockets of their victims.
Statistics from the National Consumers League reveal that each check scam victim loses anywhere from $3,000 to $4,000. Moreover, legitimate corporations whose names are dragged into these shenanigans also suffer--as their reputations are threatened and they risk losing costumer confidence.
Ed Shanahan, in his article "Don't Be Fooled," discusses three common check scam scenarios and what you can do to avoid them:
1. Unlucky Break
How It Goes: The victim receives a check from what looks like a trusted source. The check is supposedly an award or prize.
Scam Time: The recipient of the check is instructed to deposit the check into his or her personal account and then wire back a portion of the fake windfall to cover taxes and other so-called fees.
The Uh-Oh Moment: Once the money has been sent, the bank discovers that the check is fake. Under the law, the person who deposited the said check must repay the funds.
Anti-Scam Power: Ignore prize notifications that require you to pay taxes or to shoulder charges just to claim a prize. Legit companies would never do that.
2. Bogus Buy
How It Goes: A person selling an item online is contacted by a "buyer" who offers to pay by check.
Scam Time: For some reason, the bogus buyer insists on sending a check for more than the purchase price and asks that the extra amount be wired back to him or her.
The Uh-Oh Moment: The hapless seller who agrees to the strange request later finds out that the check he or she has received is fake.
Anti-Scam Power: When you're selling something--whether online or right out on your yard--never accept something that's more than the sale price. And, if you're accepting a check for an online transaction, wait until it's declared free and clear by the bank before you ship the goods. To be really sure, call your bank to find out if the check is good beyond any doubt.
3. Sad Shopper
How It Goes: There are scammers who recruit people to be "secret shoppers."
Scam Time: Each designated secret shopper is sent a check and told to cash it. Then, he or she is instructed to wire back most of the amount to the sender. To keep the shopper from sniffing out the scam, he or she is told to keep a portion of the cashed amount as "payment for rating the performance of the person who handles the transaction."
The Uh-Oh Moment: The secret shopper soon realizes that he or she has been conned with a fake check.
Anti-Scam Power: If you're accepting check payments, specify that the check have to be drawn on a local bank or a bank with a local branch. This way, you can personally call the bank and verify if the check is good or not.
In any case, there's a universal rule that should help us fight off all manner of scams. Yes, you guessed it. It's something that we've always known. Remember that if something seems too good to be, it probably is.
Credits: Photo courtesy of Wikimedia Commons.
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