BBB Warns Consumers about Counterfeit Cheque Schemes
3/11/2008
Counterfiet Cheque scams are defrauding consumers across the country according to phone calls to the BBB.
The most common type of scheme involves a counterfeit cashier’s cheque, traditionally considered a trusted form of payment. Unfortunately, the advent of high quality printers and scanners is making it easier for counterfeiters to produce official-looking cheques of all types and caliber, including cashier’s cheque.
The problem occurs when a consumer deposits the counterfeit cheque in a bank account and, a few days later, asks the financial institution if the money is “available.” When told yes, the consumer assumes that they can safely draw upon that money. That is not the case! Until the financial institution can confirm the funds have been “finally collected”, the consumer is responsible for any funds they may withdraw against that cheque deposit. The amount of time it can take for the bank to finally collect the money can vary, particularly with out-of-province or out-of-country cheque.
In most cases, victims report that they wired money to the cheque issuer only to find that the deposited cheque was uncollectible. This has happened to consumers who were told they won an international lottery and were advised to pay a clearance fee or taxes out of their “winnings” cheque; consumers who responded to work-at-home opportunities and were told to deposit a cashier’s cheque and then wire money elsewhere; and to online auction sellers who accepted certified cheque for payment from far-away buyers and sent the merchandise, only to discover later that the cheque were counterfeit.
The BBB offers tips to evaluate the legitimacy of cheque you receive from individuals or businesses that you do not know:
Independently verify that the cheque is drawn from an actual account at a legitimate financial institution.
Do not rely on the telephone number listed on the cheque. Use directory assistance to get the telephone number of the financial institution and call them to verify the cheque.
Do not rely on the money until the funds have been finally collected by your financial institution. Funds “availability” is not good enough.
If you have any questions about whether a transaction is legitimate, talk to your bank or credit union.
Those who have been victimized by a phony cheque should contact their local law enforcement agency.