In a fake check scam, a person you don’t know asks you to
deposit a check— sometimes for several thousand dollars, and
usually for more than you are owed — and send some of the
money to another person. The scammers always have a good story
to explain why you can’t keep all the money. They might say
they need you to cover taxes or fees, you’ll need to buy
supplies, or something else.
Fake checks come in many forms. They might look like business
or personal checks, cashier’s checks, money orders, or a check
delivered electronically. Here’s what you need to know about
fake check scams.
Types of Fake Checks Scams
Fake checks are used in many types of scams. Here are some
examples:
Mystery shopping.
Scammers pretend to hire people as mystery shoppers and tell
them their first assignment is to evaluate a retailer that
sells gift cards, money orders, or a money transfer service,
like Western Union or MoneyGram. The shopper gets a check with
instructions to deposit it in a personal bank account and wire
it to someone else. But once the money is wired, the person on
the other end can disappear.
Personal assistants.
People apply online and get hired as personal assistants. They
get a check and are told to use the money to buy gift cards or
to buy equipment or supplies for their new client. Once the
scammers get the gift card PIN numbers, they use them
instantly, leaving the “personal assistant” without the money
when the bank figures out the check is bad.
Car wrap decals.
People interested in car wrap advertising are told to deposit
checks and send money to decal installers — who don’t
exist.
Claiming prizes. Sweepstakes “winners” are
given checks and told to send 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.
Why Do These Scams Work?
These scams work because fake checks generally look just like
real checks, even to bank employees. They are often printed
with the names and addresses of legitimate financial
institutions. They may even be real checks written on bank
accounts that belong to identity theft victims. It can take
weeks for a bank to figure out that the check is a fake.
Fake Checks and Your Bank
By law, banks have to make deposited funds available quickly,
usually within two days. 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
weeks to be discovered and untangled. By that time, the
scammer has any money you sent, and you’re stuck paying the
money back to the bank.
Your best bet:
Don’t rely on money from a check unless you know and trust the
person you’re dealing with.
How To Avoid a Fake Check Scam
Never use money from a check to send gift cards, money orders,
or wire money to strangers or someone you just met. Many
scammers demand that you send money through money transfer
services like Western Union or MoneyGram, or buy gift cards
and send them the PIN numbers. Once you wire money, or give
someone the gift card PINs, it is like giving someone cash.
It’s almost impossible to get it back. Toss offers that ask
you to pay for a prize. If it’s free, you shouldn’t have to
pay to get it. Don’t accept a check for more than the selling
price. You can bet it’s a scam.
What To Do If You Sent Money to a Scammer
Gift cards are for gifts, not payments. Anyone who demands
payment by gift card is always a scammer. If you paid a
scammer with a gift card, tell the company that issued the
card right away. When you contact the company, tell them the
gift card was used in a scam. Ask them if they can refund your
money. If you act quickly enough, the company might be able to
get your money back. Also, tell the store where you bought the
gift card as soon as possible.
Here is a list of gift cards that scammers often use — with
information to help report a scam. If the card you used is not
on this list, you might find the gift card company’s contact
information on the card itself, or you might need to do some
research online.
If you wired money to a scammer, call the money transfer
company immediately to report the fraud and file a complaint.
Ask for the money transfer to be reversed. It’s unlikely to
happen, but it’s important to ask.
If you paid a scammer with a money order, contact the company
that issued the money order right away to see if you can stop
payment.