Watch Out for Check Scam at ATMs

By Greg Collier
State Police in the Southern Tier area of New York are alerting residents to a parking-lot check deposit scam that has been reported at banks, ATMs, and large retail locations. Although recent cases are concentrated in this region, this type of scam is not unique to New York and has appeared in other parts of the country under similar circumstances. The scheme relies on face-to-face persuasion. A stranger approaches someone in a parking area, claims to be unable to access an account, and asks for help by having the target deposit a check on their behalf. After the deposit, the stranger directs the target to withdraw cash from the same account and hand it over on the spot.
These encounters often succeed because they are built on social engineering. Scammers use politeness, urgency, or emotional stories to make their targets feel obligated to help. They may present themselves as calm and respectable to lower suspicion and push the interaction forward before the other person has time to think it through.
The risk stems from how check processing works. Funds may appear in an account before the check has actually cleared, and a bank can later determine the item is fraudulent. Institutions may place temporary holds on deposits that seem unusual, but such measures are not foolproof, and the account holder is still responsible if the check is returned. When that happens, the deposit is reversed, and the person who made the deposit is liable for the full amount. By the time the check is rejected, the scammer and the cash are gone.
Residents should treat any request to deposit a check for someone else as a red flag. Do not withdraw or hand over cash on behalf of another person, even if the story seems urgent or sympathetic. If approached, end the conversation, go inside the branch to speak with staff, or contact local law enforcement to report the encounter. After any unusual interaction at an ATM or in a parking lot, review recent account activity and notify your bank immediately if you see anything out of place.
The safest rule is simple in practice. Only deposit checks into your own accounts for transactions you can personally verify, only withdraw cash for your own use, and report suspicious behavior promptly so others are not targeted.
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