Check Fraud and Scams 101

What is check fraud?

Check fraud can occur when someone steals your check or reproduces them and is able to cash those checks, pulling money right out of your bank account.

How can I prevent check fraud?

·         Be careful who you send checks to.

·         Don’t mail checks from home – drop them off at the post office.

·         Check your mail regularly.

·         Consider using a different form of payment – such as with a debit card or Bill Pay.

What is a check scam?

A check scam is when a person you don’t know asks you to deposit a check and send some of the money to another person. Many times, the check is for several thousand dollars and is usually more that what you are owed.

What are some common signs of a check scam?

·         You were not expecting the check.

·         You don’t know the person or the company that sent you the check.

·         The person who sent the check wants you to either send money back or buy gifts cards and give them the gift card information.

What are some common types of check scams?

·         Mystery shopping: Scammers pretend to hire people as mystery shoppers. The shopper gets a check with instructions to deposit it in a personal bank account and then to wire the money somewhere else or buy gift cards.

·         Personal assistants: Scammers pretend to hire people as their assistant. They will send a check to use the money to buy equipment, supplies, or gift cards for the new client. Once the scammer gets the gift card information, they use it instantly and the personal assistant is out the money.

·         Claiming prizes: Sweepstakes “winners” are given checks and are told to send money back to cover taxes, shipping, processing fees, etc.

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