Greg's Corner

Homeowner almost loses trees to business scam

By Greg Collier

Scams come in various shapes and sizes. Take the widespread jury duty scam, for instance. Scammers reach out to numerous individuals, aiming to persuade as many as possible into parting with their money. On the other hand, scams can also be highly specific, honing in on niche industries that most people wouldn’t consider as typical scam targets.

In a recent incident in Nashville, a homeowner found themselves warding off multiple tree-cutting companies attempting to remove perfectly healthy and mature trees from their property. While it might initially seem like the mischief of local pranksters or a vexed neighbor, the homeowner wasn’t actually the main focus of the scam.

It’s suspected that the tree-cutters were ensnared in the overpayment scam, often known as the fake check scam. In this ploy, a check surpassing the agreed-upon amount is furnished for a transaction, with scammers urging the return of the excess before the victim or their bank detects the check’s falsity. This tactic leaves the victim liable for the entire amount to their bank.

The homeowner’s property was targeted in the scam due to its status as a listed property for sale. Scammers often exploit homes in this situation, assuming they are unoccupied during the sales process.

Business owners can take proactive measures to safeguard themselves against the overpayment or fake check scam.

Before proceeding with any transaction, especially involving a check for an amount exceeding the agreed-upon price, confirm the customer’s identity and purpose of the transaction.

Whenever possible, encourage or require the use of secure and traceable payment methods such as electronic funds transfer, credit cards, or certified checks. These methods offer more security compared to personal or business checks.

If you receive a check, especially if it’s unusually large or if there’s pressure to return a portion of the payment, independently verify its authenticity. Contact the issuing bank directly to confirm the validity of the check.

Don’t release goods or provide services until the check has fully cleared. Depositing a check doesn’t guarantee its clearance, and it may take time for banks to confirm its legitimacy.

By implementing these precautions, business owners can reduce the risk of falling victim to the overpayment or fake check scam.