|
Checking Accounts
Savings Accounts
Personal
Asset Management
Retirement Planning
Loans&Credit Cards
Private Banking
Insurance
Electronic Banking
Senior Services
Web Resources
Customer
Service
Calculators
Disclosures
|
 |
Computer technology has given con artists the ability to make
very good counterfeits. Unlike currency that has a specific design
and uses special paper and security features, each bank’s
cashier’s checks are designed differently and printed on
many kinds of check paper with any varying number of security features.
It’s this inconsistency that makes cashier’s check
a likely target for counterfeiters.
Many people can fall victim to this type of fraud because the
person accepting the cashier’s check doesn’t know what
a genuine check is suppose to look like. Although people can feel
relatively safe in accepting genuine cashier’s checks, a
person accepting a counterfeit check is generally financially liable
for the item. If you have questions concerning the acceptance of
a cashier’s check contact your personal banker at 1st Source
Bank.
Counterfeit Cashier's Check Scams: How They Work
- You get a bad check and they get your car
The scam begins when a counterfeiter poses as a potential buyer
of a large item for sale. For example, the item can be a car. The
seller signs over the title and the counterfeiter heads directly
to the Motor Vehicle Division. Within an hour, he could have a
new title and you have no idea you have a bad check. He'll find
another buyer looking for a good deal and sell him the car cheap.
- You receive over payment for an item you are selling
Another scam finds the counterfeiter buying expensive items
on the Internet or through newspaper classified ads. Many of the
individuals
posing as potential buyers are from overseas or say they are from
overseas. This is how the scam unfolds:
- The buyer sends a check
for an amount greater than the seller's price
- The buyer
then asks the seller to send by Western Union the overpayment
to another individual who will be making arrangements
for shipping
of the purchased property.
A seller may not only lose the property they’re trying to
sell, but they may also become financially liable for the counterfeit
check they accepted for purchase the property.
- You get a check and are asked to wire the funds
Another
scam using counterfeit cashier’s checks doesn’t
involve the purchase or sale of anything. A communication may come
to you by email, fax, or letter asking for your help in moving
millions of dollars out of a foreign country and into the United
States.
- They may say they are a widow of a former military officer
in a foreign country who needs assistance in moving money
out of the
country before her country’s government confiscates the
money.
- They may say they are an official of their country’s
government and that they’ve discovered money in a government
account that comes from companies that were over-invoiced
for work
they did for their government and they now want your help
in moving
the money out of the country.
- They’ll even attempt
to pass themselves off as a religious organization asking
for help to move money belonging to an orphanage
that is being shut down by their country’s government.
- They
tell potential victims that they are an heir of an estate
and there is an unclaimed inheritance waiting for
them. They ask
individuals to mail in a fee to help locate and process
the claim to their inheritance.
There are hundreds of variations of this scam. At some point they
will ask for money that is needed to pay taxes or a claim fee on
the money before it can leave the country. When the person who
volunteers their services to help move the money indicates they
don’t have the money to pay the necessary fees, the scammer
says they have a check (which is counterfeit) that they say they
obtained from someone who was willing to advance the money for
the needed fees. The volunteer is then directed to deposit the
money into their bank account and then wire transfer the money
to another party. When the counterfeit check is returned unpaid
from the bank that it is supposedly drawn on, the bank customer
becomes liable for the check and has to return the money to the
bank.
Tips for Avoiding Counterfeit Cashier's Checks
- Be suspicious of offers from outside the United States.
- Be
wary if a buyer sends more than the purchase price of an item.
- Use
Internet phone directories to obtain the phone number of the
bank issuing the Cashier's Check. Call or visit the bank
to
confirm the check is legitimate.
- If you're selling a car, tell the buyer you'll
meet him at the bank that issued the check. That way you will
know if the check
is for real.
- If it's an out of state check cashier's check,
tell the buyer to cash it himself. Treat a cashier's check like
any check - with
caution.
- If possible ask that the funds be wired to your account.
Typical wire fees range from $20 to $25.
Remember to trust your instincts. If you suspect something is
wrong, don't do the deal. Almost all victims were suspicious at
first, but did not trust their feelings.
For additional information relevant to counterfeit checks, visit
the web sites listed below:
- Crimes of Persuasion -
Schemes, Scams, Fraud. Explains how con artists will steal your
savings and inheritance through telemarketing fraud, investment
schemes, and consumer scams.
- Michigan's
Office of the Attorney General - Consumer alerts to inform
the public of unfair, misleading, or deceptive business practices.
|
