Don’t Fall For The Fake Check Scam

There is a scam sweeping the nation where people are losing an average of $3000 to $4000 if they fall for it. It is a fake check scam. Here is how it works:

This scam takes on many different forms. So the form is not what is important. The important thing is to be able to identify the basis of the scam. It all starts when someone gives you a realistic-looking check or money order and asks you to send cash somewhere in return.

The person will typically have a very sensational story to back up this request. You deposit the fake check or money order, send the cash, and then, just like that, you are personally out all of that money.

The problem with these scams is that the money order and the check look very real. If you present it to the bank, they are going to honor it and deposit it into your account. The problem comes when the bank discovers that the check or money order is a fake. Then you are out the money.

Some examples of the scam:
- The Scammer will ask you to cash a check or money order as a favor.
- If you are selling something, they will write the check or money order for more than the price requesting cash back.
- It might be a company that hires you to work at home, and as part of your job duties, you deposit checks or money orders in your account.
- It could be a check that you receive as part of an advance for winning a sweepstakes or some type of foreign business deal.

Scammers are also looking for victims on Ebay, Craig’s list, online dating sites, etc.

So how do you protect yourself from being a victim? First, don’t just automatically trust someone in any transaction that you don’t know. That is the number one rule of thumb. If it involves money and favors, don’t trust it. Second, there is a not legitimate reason why anyone would have you cash a check for them and then send the money. Third, there has to be risk involved if you are dealing with someone who can’t get a check cashed.

Finally, don’t do anything that involves money or giving personal information in any situation where you are approached. If someone calls you and asks for verification of information, don’t give it to them. If you approached through an e-mail, don’t respond.

That one piece of advice will work to prevent most scams from being successful.

All contents copyright © 2007 Prudent Money and Bob Brooks. All rights reserved.