Greg's Corner

Fake check scam hitting new highs

If you’ve been following our blog for a while you’re probably familiar with the fake check scam. It’s a scam that has been around since the early days of craigslist but has since expanded into other avenues. If you’re unfamiliar with the scam, a scammer will send you a check for various reasons and will ask you to deposit the check into your banking account then will have you wire them back a large portion of the money they sent you. The problem is, by the time the bank finds out the check is a fake, you’ve already sent the money back and you’re stuck with repaying the check amount back to the bank.

Since this scam has been around for such a long time and has been written about a myriad of times, one could assume that the scam was on the decline. Not so says the Better Business Bureau as a new report they recently released claims that as many as 500,000 people in the US fell victim to this scam last year at an average rate of $1200 per person. If their estimation is correct, that means scammers cost their victims around $600 million altogether.

As I previously stated, this scam has evolved into taking many different forms although there are many common ones. The most common is when you’re trying to sell something online and you receive a check for more than the amount your asking. Another common tactic the scammers take is tied to an employment scam, like secret shoppers. They’ll send you a check for phony expenses and have you wire the money to a phony vendor. Sweepstakes scams are another favorite tactic of fake check scammers where they will send you a check but you need to wire someone the taxes or fees needed to handle the cost.

Any time someone you don’t know personally asks you to deposit a check into your bank account is more than likely trying to scam you. Another good tip-off to being scammed is when you’re asked to wire any kind of money to a third-party. Scammers have been taking advantage of money wiring services for years as in many cases they can receive the money anywhere and walk away with your cash completely anonymously.