Unwary consumers duped by counterfeit check scams
Banks required by law to give depositors quick access to funds, often before a phony check bounces.
from the August 6, 2007 edition
Page 3 of 3
Informing account holders of the risks of check scams has reduced customer losses due to check scams by 80 percent, says Mr. Kelbus.
A long road to recovery
A simple notification might have saved consumers like George, the retired home remodeler, from financial difficulties. George, who lives on Social Security, says that the bank took all of the money in his account – including a month's Social Security – to help cover the bad check.
Unable to open a new checking account at another financial institution, he has relied on check-cashing services to cash his Social Security payments, hiding the money in his house. Not having a bank account hasn't been easy for him – he once spent several days searching for money he misplaced, and he is still fighting to regain his financial footing.
So you’ve received a suspicious check. What now?
1. Ask yourself: Does this make sense?
No, you didn’t win a foreign lottery you never entered. And if anyone sends you a check and asks you to wire them money, that
person is extraordinarily trusting: Nothing’s stopping you from just keeping the money yourself.
“The bottom line is simple,” says Susan Grant, director of the National Consumers League’s fraud center. “No one who wants
to give you money would be asking you to send money anywhere.”
2. Alert the fraud department at your bank.
They may be more aware of check scams than front-line tellers, and may be able to give you a better idea as to the legitimacy
of the check.
3. Try to cash it at the bank of origin.
If the check is drawn off of a local bank, you may be able to withdraw funds directly from that bank for a fee, says Shelley
Daniel, manager of incoming returns operations for Wachovia.
4. Report it.
A number of groups collect check scam complaints to warn the public or work with law-enforcement agencies to stop scams, such
as the Ripoff Report www.ripoffreport.com, Better Business Bureau www.bbb.org, and National Consumers League www.fraud.org.
5.Keep the check in a safe place.
You may later need the check for evidence, says Ms. Grant, but you don’t want anyone else to get a hold of the check or try
to cash it.
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