Don't Get Tricked by the Treat of a Fake Check

Friday, Oct 3, 2008

LITTLE ROCK - Counterfeit check schemes can take many forms. For instance, you may receive a prize check in the mail from an international lottery, even though you didn't enter the sweepstakes. Alternatively, you may be contacted about a job in which you are promised a percentage of a transaction or even a set salary for only working a few hours by cashing checks and wiring money to a foreign account. Whatever form the scam may take, it's still a scam, and recently, the Public Protection Department has received word that a fake check scam has hit the Cave City area, affecting dozens of consumers. Thus, today, Attorney General Dustin McDaniel issued this consumer alert to warn citizens in that area, and across the state, about such schemes.

In almost all counterfeit check scams, the consumer is asked to wire his or her own money to an overseas account. Whether one has the check in hand prior to the transfer or is promised a check after it's complete, the check will not clear and the consumer loses money rather than gaining it. Wired money cannot be retrieved in most cases.

"If you are contacted by a stranger who wants to give you money, red flags should go up immediately, no matter how good the offer sounds or how real the check looks," said McDaniel.

Technology has enabled con artists to create checks and money orders that look authentic. These scams employ high quality printers and scanners to make the checks look real. Some counterfeit checks contain watermarks and the names, addresses and routing numbers of legitimate financial institutions. Even though such information may be correctly listed on a check, it's still a fake.

To avoid falling victim to a counterfeit check scheme, here are some tips to remember:

- Don't try to collect on money you are not expecting to receive;
- Never give out your personal bank account information to anyone you don't know and don't trust;
- Never accept money without knowing its source;
- Never wire money to strangers; and
- Never fall for high-pressure tactics--if the offer is legitimate you should have time to verify it and the check.

We do not suggest that you attempt to cash or deposit these checks; but, if you decide to take the check to your bank, never withdraw or attempt to use any of the funds until the check has cleared, a process that will take days or weeks. At that time you can expect that your bank will tell you that the check is bogus.

If you are a victim of a fake check scam or have been a target of one, contact the Federal Trade Commission at www.ftc.gov or 1-877-FTC-HELP (1-877-382-4357) and the Public Protection Department of the Attorney General's Office at 1-800-482-8982. To learn more about counterfeit check scams and how to avoid them, visit www.fakechecks.org.