In a world that’s becoming increasingly more technological it seems like the old way of living is slowly fading away. Unfortunately, one thing that’s not going away anytime soon is the desire for evil people to try and steal your hard earned money. So to make sure you are protected; below we are highlighting common yet very effective fake check scams.

Fake Check Scams

With the prevalence of digital banking it would seem that the biggest challenges facing individuals regarding bank scams would be more digital in nature; however, with U.S. companies and banks still testing the waters with online banking, atms, and apps some people prefer the convenience of simply using cash or a check. Despite what you’re probably thinking

Who uses checks anymore?

Checks do have many purposes in life. From rental payments to typically being an option to avoid convenience fees-checks can be useful. We say all of this to show that it’s understandable that scammers have a high success rate when running check scams. So how do they work? Let’s look at the Illustration below:

As you can see from the illustration above scammers get in contact with you in a variety of ways: promise of winning a prize, selling an item online, or receiving a job (typically a remote/freelance). Regardless of how they get in touch with you the common denominator is that they send a bogus check-usually a large amount-for you to deposit at your bank. After you make the deposit these scammers then instruct you to either wire excess funds back to them or make purchases for “equipment” through their vendors.

Now you may be wondering

Umm…where’s the scam?

Understanding the scam!

Well, let’s go back a few steps. When you deposit that fraudulent check your financial institution is required to release a portion of the funds. However, just because the bank gave you that money doesn’t mean you’re in the clear. It can actually take weeks before your financial institution properly processes that check and determines the check was fake. Since the check is fake now you have to return the money that was deposited. But wait! Remember when the scammers asked you to spend money? Yeah, that was actually your own money that you wasted. In other words, you traded your hard-earned money for fake money! Yikes!

Sadly, cases like these don’t end well as scammers obviously use fake addresses to avoid getting caught. And at the end of the day, you will be the one on the hook for repaying your bank/credit union. But by understanding how this check scam works you can prevent these scammers from getting your money.

We're Social! Connect with us:

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.