Greg's Corner

Are you in danger of this twist on the check scam?

I’ve been writing about various scams for quite some time now. One of the more prevalent scams is what’s referred to as the fake check scam. How this scam usually works is when you post something for sale online, you may receive a check for more than your asking price. The person who sent you the check will say something along the lines of the excess amount was a mistake and that you should deposit the check then wire them back the difference. You should never deposit one of these checks as they often turn out to be counterfeit and you could end up being responsible for paying the full amount of the phony check to your bank. Now, there is a variation of that scam which targets people who write personal checks in their daily lives.

While this may not technically be a new scam, it is the first I’m hearing about it and it’s been a long time since I’ve heard of a new scam. Anyway, in Tennessee, an IT professional discovered that several thousand dollars were missing from her checking account. When she contacted her bank it turned out that some unscrupulous type was printing out cashiers checks using her banking account information. While the bank was able to return her money to her, the scammer used the bogus checks to buy a motorcycle off of craigslist. That means that whoever was selling the motorcycle basically had their motorcycle stolen.

So how did a con artist get a hold of this woman’s checking account information? Well, if you write personal checks on a regular basis any number of people would be able to ascertain your account information since your account and routing numbers are printed on each check. Then a phony cashiers check with your information could be produced on just about any printer. While writing checks is slowly becoming a dying practice, there are still some holdouts. I’m sure we all either know someone who still writes checks or have run into someone who still uses checks as their primary form of payment. In our digital age, while not perfect, debit cards are a much more secure and convenient form of payment. If you know an avid check writer, please consider sharing this story with them in hopes of keeping their personal finances safer.