Don’t Be Fooled by Fake Check Scams

Think you're too savvy to fall for a fake check scam? Don't be so sure. Fake check scams involve someone you don't know offering to send you a large sum of money but requesting that you wire or send a portion of the money back. Fall for this and you could be out thousands of dollars. By cashing the check, you'll be responsible for repayment once the check bounces.

As part of a public awareness campaign, the National Consumers League (NCL), a consumer advocacy group in Washington , D.C. , has launched www.fakechecks.org to warn and educate consumers about the different types of counterfeit check scams. The site includes videos of possible scams, a quiz to see if you could be faked out, and advice about preventing scams.

Consumers are responsible for the losses if the checks or money orders they deposit prove to be phony—a fact that many people don't know until it's too late. According to the NCL's Fraud Center the average loss is between $3,000 and $4,000 – a significant amount for most people. As one victim put it, it's the cost of the used car she was saving to buy. 

The NCL advises asking yourself why someone you don't know would offer to give you money, or give you more than you're owed. Be on guard for these schemes:

• Overpayment schemes. Crooks offer to write a check for more than the purchase price for items you've advertised in your classified or online auction posting.
• Foreign lottery schemes. Crooks send a letter claiming you've won and a check for part of your winnings, but they ask you to pay "taxes" or other fees to get the rest of the money.
• Working-from-home schemes. Scammers send e-mails asking you to work from home as an "account manager" processing payments. They then dupe you into depositing fake checks and sending them real cash.
• Foreign-business-offer schemes. Con artists ask you to help move a fortune to the U.S. for safekeeping. They send you a check but tell you they need money from you to transfer the funds.
• Rental schemes. Scammers falsely claim to be moving to the area, give the landlord a check for rental deposit, then claim they have unexpected expenses and ask for some of their deposit back. They never move in, and the check doesn't clear.
• Love-of-your-life schemes. You meet that perfect person through an online chat room or dating site, but he or she needs you to cash a check and send the money so you can meet.

For more information on check scams go to www.fakechecks.org