Anchorage, Alaska – April 21, 2009 – Your Better Business Bureau warns that consumers are receiving fake or stolen checks in the mail. Depositing these checks usually result in the consumer's money being swiped—not funded.
The check arrives in the mail with a letter stating why the money was received. The letter will go on to say that a portion of the money needs to be returned to the sender or sent to another source via money wire, check or cash to pay for taxes, shipping, fees, etc.
Lucky people who try to deposit the scam check get stopped by a bank teller. However, with better printing and computer technologies, consumers are often able to deposit the check. They normally find out after they've transferred funds to the scam artist that the money never comes or the money arrives but is stolen from another person or business' account. This can put a freeze on the consumer's account and requires the consumer to pay back the money to the rightful owner, including the funds sent to the scam artist.
Common excuses scammers use to send letters with fake checks:
- Overpayment offers. Consumers or businesses selling an item online or in classifieds are contacted by a buyer and told the buyer will purchase the item and will send extra money to cover shipping costs. The buyer then requests that the seller send or give the extra money to another business or person handling the shipping. A new approach to this scam: An Alaska resident contacted your BBB stating multiple people attempted this scam when he tried to sell his puppies through classifieds.
- Lottery, sweepstakes or grant winnings. Consumers are sent a check and letter stating they won a lottery, sweepstakes or grant. It requests that the consumer deposit the funds and send a portion back to pay for taxes on their winnings. Recently, consumers are contacting BBB stating they received such a letter from Canada with a check that appears to come from a U.S. business. Remember, it is illegal for U.S. citizens to participate in foreign lotteries. Also, if you did not purchase the lottery ticket, or apply for the sweepstakes or government grant, you should not receive the funds.
- Foreign business or work-at-home job offers. Consumers are sent a check and a letter stating they are receiving an employment offer. The consumer can keep a portion of the money from the check if they do a job, such as secret shopping. In other cases, consumers are under the impression they are working for an overseas company and their checks will come from a U.S. company associated with the employer. But the check overpays the employee, who is instructed to wire overpayment to the overseas company.
Be aware of the above common counterfeit check schemes. Report check fraud to the Federal Trade Commission, 1-877-382-4357. Report postal mail fraud to the United States Postal Inspection Service, 1-800-372-8347. Get a BBB Reliability Report on businesses and organizations before working with them at www.bbb.org
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About your BBB serving Alaska, Oregon and Western Washington:
Your Better Business Bureau is a not-for-profit organization funded by Better Business Bureau Accredited Businesses. The BBB's mission is to be the leader in advancing marketplace trust. For more information about the services and products provided by your BBB, call 206-431-2222 or 253-830-2924 in Washington, 503-212-3022 in Oregon, 907-562-0704 in Alaska, or visit our Web site at www.bbb.org.