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Fake Checks |
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Fake Check Scams: |
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| Victim is convinced by a fundraiser to accept a realistic-looking check or money order and deposit or cash it | ||
| Scammer instructs the victim to wire a portion of the funds somewhere (most often outside the U.S., but not always) | ||
| The scammer will pick up the wired funds in the form of cash almost immediately | ||
| The funds can't be recalled once picked up (simply the way wire transfers work) | ||
| This type of scam takes advantage of
consumer's ability to access funds before the counterfeit is discovered
- even though your bank shows the funds as available in 24-48 hours, the actual transfer may take as long as 10 days to process through the banking system - If the funds were taken from an account of a person whose identity was stolen, the counterfeit may not be recognized until the owner of the account catches the transaction on their monthly statement |
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| It is very easy for scammers to use this method due to the availability of check stock (or even ordering checks from retail vendors and having incorrect account numbers printed on them) | ||
| The consumer is liable for the loss of funds, but institutions may lose money if the consumer us unable to repay the loss | ||
| Losses generally range from $3,000 - $4,000 | ||
| Besides the initial loss of cash, the consumer may have to deal with the following: | ||
| Overdraft fees | ||
| Bounced check fees | ||
| Bank account may be frozen or closed | ||
| Negative reports to credit agencies | ||
| Legal fees if the unable to cover the loss and the bank peruses legal action | ||
| Some victims may be charged with check fraud | ||
| Auto-withdrawal accounts (mortgage, car loan, utilities) may charge late fees for insufficient funds | ||
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How Can You Protect Yourself? |
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Click here for information on how to protect yourself from these scams |
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Click here for more resources |
The information on this page and it's links are meant for informational purposes only
if you have any questions about a product, offer or request for money or information, contact someone with experience in these matters
