With the increased
use of the Internet and e-mail, there
are a growing number of ways in which good, well-known
bank customers are being scammed. These scams vary in
size from a few hundred dollars to hundreds of thousands
of dollars stolen from a single customer. There are many
stories used in these scams; they are too numerous to list.
The scams all have two things in common.
First, the scams involve convincing the good bank
customer that the stranger is “trusting” the victim with his
funds. The crook wants the victim to be in a position to
“prove” he can be trusted. Second, a check of some sort
is sent to be deposited to the victim’s account. The check
names the good bank customer as the payee. When the
victim is a longtime, well-known customer of the bank, it
is not likely that the bank will refuse to accept depositing
of the check. The check may be drawn on an account of
a large, well-known company; it may appear to be a U.S.
government check; it may appear to be a cashier’s check.
However, in every case, the check is not valid. It may be a
completely fictitious check drawn on a nonexistent entity at
a nonexistent bank. It may be a fictitiously created check
drawn on an actual company’s account. It may be a check
drawn on a Canadian bank. It may be a properly issued
check which was stolen from the mail, chemically washed
to remove the original payee and altered to show the victim
as payee.
How does the crook get the money?
The crook convinces the victim to send part of the
check proceeds to an accomplice as soon as the bank will
allow the customer to withdraw the funds. The reason given
for sending the money varies. It could be a percentage
was agreed to be paid as part of the “deal”. Funds may need
to be paid to release additional funds. Funds may need to
be paid for alleged taxes, licenses, fees or attorney fees
for
the deal. The amount of the check may be more than what
was owed so a portion of the funds need to be returned.
The customer may be told that a foreign company needs an
agent to cash a check in the U.S. and then wire the funds.
The stories are sometimes very believable.
How long should I wait to know the check is “good”?
It is almost impossible to tell when you have waited
long enough. It is possible to be liable for the check for
several years. Just because an account is credited and the
bank releases any holds on the funds does not mean that the
check is good. It is possible under normal circumstances
for a check drawn on another U.S. bank to be returned for
a forged maker’s signature two weeks after the deposit is
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made. If the check
is drawn on a Canadian bank, the check can be returned
several months later. If it is a fictitious
check drawn on the U.S. Treasury, the credit can be reversed
many months after the check was deposited. However,
waiting weeks or even months is not always safe. If a
legitimate check was stolen from the mail and then altered,
the check can be returned for three years, or more, after it
was deposited. When the check can be returned to the
depository
bank, the depository customer will be liable for the
check.
How can I verify that a check is “good”?
It is almost impossible to tell if a check is “good”. It is
often possible, however, to verify that the check is defi
nitely
invalid. If the check is drawn on a phony account or is a
phony cashier’s check, contacting the bank it is alleged to
be
drawn on may help determine that it is worthless. However,
if you contact the bank, they cannot tell you whether or not
the check was stolen from the mail and altered. Only the
maker of the check can provide that information. You may
be able to contact the maker of the check directly; however
you should never use a phone number listed on the check.
You will need to independently locate the phone number
of the maker. However, even if you do all the verifi cation
possible, there is still a possibility that the check could
be
returned years later, and you will be stuck.
Too Good to be True?
Most of these scams fall into the “too good to be true”
category. If it seems to be too good to be true, it is. The
crooks take advantage of the fact that even their skeptical
victims often can’t fi gure out how they are being scammed.
Whenever you negotiate a check, you have the potential for
long-term liability. If you are being asked to cash a check
for a stranger and send someone part of the money, you are
being scammed. Don’t do it.
The Bottom Line
When a check is cashed, your bank often allows the
funds to be withdrawn within a few days. However, if the
check is not valid, the depositor can be liable for the
check
for a very long period of time. You need to be skeptical of
any check received from a stranger. If you are asked to
deposit
a check and send some of the funds to others, simply
refuse. It could save you from a long-term financial mess. |
