Fake check scams leave depositors holding the bag

Rarely a day passes at Northeast CONTACT without an inquiry from a member or consumer asking questions about checks they have received or might receive as part of some business transaction. These checks (sometimes they appear to be cashiers’ checks) look so real that even bank tellers cannot tell that they are fakes.

Often these checks are drawn on financial institutions located in Canada or other countries. The basic premise of these scams, no matter what the type of business transaction being proposed, is that the check amount is too high and the recipient is instructed to send the difference back to the sender.

Cutting to the chase, your money will be gone, never to be seen again, and yes, the check sent to the consumer is bogus, and the deposit eventually will bounce, perhaps weeks later, all at your expense.

Wise Maine consumers should know there are many thousands of variations on the fake check scam. In some scams consumers are notified that they have won some offshore lottery or sweepstakes. Perhaps they are honest people trying to sell a high-ticket item such as a car, or some other type of property (CONTACT’s most recent case involved the sale of a motorcycle. This transaction was nipped in the bud before any loss was incurred by the consumer). Other methods can be offers of employment. The scam can vary in hundreds of different forms, limited only by the imagination and slyness of the bad guys. These charlatans are almost always located somewhere outside the United States, where prosecution of these perpetrators is nearly impossible.

How do criminals involved with fake check scams find their victims? They might seek the names, phone numbers, and e-mail addresses of people looking for work who have posted their resumes online. They may pretend to offer employment to the unwary. They prey on people who list items for sale in newspapers or other classified sale publications. They post their own ads with their e-mail addresses or phone numbers for victims to contact them. Once again, there are thousands of ways for criminals to get consumer information to approach people with these fake check deceptions. It’s a game of percentages, and these unsavory folks know that a certain number will fall prey to their schemes.

Once again, there is always a wire or send-money-back component to all of these scams. When consumers deposit their phony checks in their own accounts, the checks will eventually bounce. When that occurs the consumer’s financial institution draws money from any other account the customer may have with them. Additionally, the victim is often investigated closely by law enforcement officials, who examine whether or not the victim is part of the criminal ring.

In this circumstance, not only is their money gone, but now they are the center of a police investigation, which adds insult to injury. Responsibility for the bad check lies with the person who deposits it. The banks and statutes reason that these people are in the best position to determine the risks; the depositor is the person who directly worked with the person sending the check. It should be noted that the average loss in these fake check scams is more than $5,000.

Should there be any question about a deal that includes a possible fake check scam, consumers should not hesitate to seek assistance from the National Consumers League at www.fraud.org or by phone (800) 876-7060. The information you provide will be reported to law enforcement agencies. Northeast CONTACT can also provide assistance through our Web site or the Bangor Daily News e-mail, or more directly at 992-2490. With a little knowledge, the informed consumer can effectively sidestep the quicksand of these fake check scams.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT for Better Business, Inc., Maine’s membership-funded, nonprofit organization. An individual annual membership is $25; business memberships start at $125. For consumer help and information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.