Check Scams
Check scams are nearly impossible to spot if you don’t know the warning signs to look for. We believe the more our members know about scams and fraud, the better we can assist with protecting ourselves and our community. Check scams are more commonly used than you probably think, making it one of the most dangerous scams. It can be tailored to take advantage of people in all different phases of life. We are here to provide you with information about common forms of check scams as well as ways to avoid falling victim to fraud.
Types of Check Scams
Fraudsters all have a similar goal – take your money. But the way they try to trick you varies. Here are a few common types of check scams to stay vigilant for:
- Overpayment Scam: Suppose you sell an item online and the buyer sends you a check for a greater amount than you charged. They will then ask you to wire the difference back, but when the check eventually bounces, you are left covering substantial fees and the fraudster makes off with your cash.
- Mystery Shopper Scam: While mystery, or secret, shopping is a legitimate research job involving visits to stores, fraudsters will take advantage of it, twisting it to fit their own scheme. You may be sent a money order or check to deposit along with instructions to spend a portion of the money on a secret shopping assignment. You are then instructed to send the remaining money back. Unfortunately, this could result in you sending money back to the fraudster before finding out the check is fake.
- Car Wrap Decal/Ad Scam: With this type of check scam, a fraudulent company will offer you a certain amount of money to have your car wrapped with a decal for advertisement. When you receive the check, it’s for way more than they owe you to wrap your car. You are instructed to deposit the check, keep your share, and wire the rest of the money to the “company” who will wrap your car. Weeks after you wire the money, the check bounces, the money you kept and wired is long gone, and you are stuck paying the funds back to your bank.
- Sweepstakes Scam: You receive a call, email, or letter saying you won a sweepstakes, lottery, or prize. In order to claim your winnings, you must send money to cover certain “fees” or “taxes”, or they will ask for your account information in order to deposit any funds. If you fall for the scam, you could lose a substantial amount of money.
How to Protect Yourself
It’s important to know the steps to take in case you come across a potential check scam. Here are a few tips on how to avoid falling victim to check scams:
- Slow down. If you receive a suspicious check, before you act, talk to someone you trust or your financial institution. Having a second set of eyes can save you from a large loss.
- Never send money back. If you receive a check with a letter that instructs you to send a portion of the money back, don’t do it! Especially if the check is from a company or someone you are unfamiliar with.
- Report potential fraud. If you suspect fraudulent activity, it’s important to report it right away. This could protect your information as well as other potential victims of this scam.
Remember that if something seems suspicious or too good to be true, it probably is. If you’re ever skeptical about a check, bring it in to one of our branches and we will gladly review the check with you to determine whether or not it is legitimate. You can also tune into our Scams and Fraud playlist on YouTube to learn more about Fake Check Ploys.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.