Don't be Fooled by Phony Checks

Sep 28, 2007 -- LITTLE ROCK – The scam is not new. You get a letter notifying you that you are a big winner in a lottery. You may even get the prize check in the mail with the congratulatory notice. All you have to do to become a big winner is deposit the check and wire money to the sender to cover some taxes and fees. Sounds easy, doesn't it?

Most consumers realize that it is too easy, and recognize this as a fraudulent fake check scheme. However, scam artists have repackaged this same scheme with a new pitch, and one Arkansas consumer recently reported losing $5,000 in a fake check scam included within a “mystery shopper” solicitation. In this solicitation, the consumer is recruited to become a “mystery shopper” and is provided a check to deposit in the consumer’s bank account.

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The consumer is instructed to use his account to make purchases and forward “fees” to the scam artist. Only when it is too late does the consumer discover that the check is no good and that their money is gone. Attorney General Dustin McDaniel issued this consumer alert today to remind Arkansans that scam artists sometimes modify a scam once the previous version has been exposed.

No matter how authentic the check looks, it is not good. Consumers who deposit the checks into their accounts and authorize the wire transfer soon learn that the check didn't go through and that they cannot get the wired money back.

"Scammers now have high-tech printers and scanners that allow them to make checks that look real. When you combine this technological sophistication along with a false promise of a financial windfall, consumers can easily fall victim,” said McDaniel. “The simple thing consumers should remember is that if it sounds too good to be true, then it probably is, and they should do their homework and ask questions prior to taking any action.”
To avoid falling victim to a counterfeit check scheme, here are some tips to remember:

- Don't try to collect lotto or sweepstakes winnings if you don't remember entering the contest;
- Never give out your personal bank account information to anyone you don't know and don't trust;
- Never accept money without knowing its source;
- Never send money to an unknown source; and
- If you take the check to the bank, ask that it be verified and do not withdraw your own funds until the check has cleared, a process that can take days or even weeks.

If you believe you have been a victim of a counterfeit check scheme, you may contact the Public Protection Department of the Arkansas Attorney General's office at 501-682-2341 or toll-free, statewide at 1-800-482-8982. Victims of payment forwarding schemes should not only report it to the Attorney General's office, but also to the Federal Trade Commission via its Web site, www.ftc.gov/consumer, or via phone at 1-877-FTC-HELP (1-877-382-4357).

Source: Arkansas Attorney General