Dollars and Sense – Michael W Marshall; Community Banker
Something for Nothing
Fall-time is in full swing which brings a lot more financial scams to unsuspecting people by targeting the ‘something for nothing’ fairytale. We have all been told that if something sounds too good to be true then it probably is. It is imperative to be on the lookout for counterfeit items involved in various scams.
There are a couple of reasons why Fall-time seems to bring an increase of people victimized by counterfeit scams. One of the reasons is people want extra funds to help offset spending for the upcoming holiday season. Another reason is who couldn’t use some extra money.
There are numerous scams and variations of each type plaguing consumers today; however, the underlying scam is the same. Con-artists send counterfeit items to potential victims in hopes that they send the majority of the funds back to them via Western Union or MoneyGram. These counterfeit items can be in the form of checks, money orders, or traveler’s checks.
Examples of scams wreaking havoc on unsuspecting consumers are:
- Lotto Scam…This type of scam claims that the potential victim has won a large foreign lottery. Included with the scam is a counterfeit item typically less than $5,000.00. The majority of these funds are to be sent to the con artist in order to ‘pay taxes’ on the funds.
- Work from Home ‘Secret Shopper’ Scam…Potential victims are under the impression that they are acting as an authorized representative for an company. Their ‘job’ is to receive money orders or traveler’s checks, usually under $1000/each. Once they receive 5 or 6 of these they are to cash all of them, take out 10% for their pay, and send the remainder of the funds to the con artist while evaluating the service they encountered from Western Union or MoneyGram.
- Overpayment Scam…People selling items via the internet or local paper are approached by a potential buyer with an offer. The seller, potential victim, receives a negotiable item usually in the form of a counterfeit cashier’s check for an amount higher than the purchase price. The potential victim is then instructed to send the balance of the funds to a 3rd party shipping company. Not only are the funds not good, the sold item is usually already shipped and lost also.
For a more detailed overview of scams used, visit https://consumer.ftc.gov/articles/how-spot-avoid-and-report-fake-check-scams
So, with all this gloom and doom talk, how do we stop the counterfeit scams? The answer is simple…Know what you received.
- If you receive an unsolicited letter containing a check or money order that you know nothing about, then you need to question it.
- A lot of the scams are being mailed from Canada. If the envelope was mailed from out of state or Canada, then this should be an indicator that this could be a scam.
- Pay attention to the item. Is the item drawn from an out of state bank? Are there misspelled words on the check?
- Do not contact the person or company that issued you the item by a phone number on the letter. These scams work by having the potential victim contact the con-artist, which opens up a line of communication.
- Contact the bank where the check is drawn from. Don’t use the phone number on the check. If the check in hand is a counterfeit then any phone number on the check is a fake number also…use a web search such as www.dogpile.com to find a phone number.
- Talk to your financial institution. Explain to them that you know nothing about the item other than it was mailed to you. Be sure to bring the item, envelope, and all other correspondence you received.
- You can contact your local police department or the post office for more information on scams.
Remember to be cautious with promises of getting something for nothing and of any unsolicited letters you may receive. If you do receive an unsolicited check or money order that sounds like it could be a scam, then contact your financial institution, police department, or post office.
Michael W Marshall
Proud Community Banker
