Fake Cashier's Checks

Fake Cashier's Checks - Don't Be a Victim

Many of us have always said "Hey, it's a cashier's check, no need to worry." Wrong. Cashier's checks have

always been treated as if they are as good as cash, but that's not a sure thing anymore. Scammers are using

phony cashier's checks to take advantage of our trust. Unfortunately, the trickster is not often caught and

individuals and businesses suffer the loss. This means that all of us, individuals and financial institutions, must

change the way we do business

With

cashier's checks.

How does this fraud happen? Theses scammers are using PC's and scanners to make these counterfeit checks. In

many cases, the

fraudster has gone into a bank or credit union, gets a legitimate cashier's check and then uses a

scanner to copy it on to a computer.

With

the help of sophisticated printing software, the scanned copy can be

altered,

payable

to anyone, for any amount.

When you advertise an item for sale, such as a car or piece of equipment, you may place an ad in the local

newspaper or on a popular

Internet site such as e-bay or Craig's list. Let's say you offer to sell your car for $5,000, a

fair price. You make a deal

With

a buyer (many

times via e-mail), you receive a cashier's check and the buyer takes

the item. You head to the credit union to deposit the cashier's

check. At some point, you will be using the money for

other things, perhaps a down payment on another car. A week later, the credit

union calls and says that the

cashier's check has been returned unpaid because it is a counterfeit. You have a negative balance in

your account

and you do not have your car. You have been a victim of a scam and have lost $10,000.

A nastier version of the same scam has the buyer giving you a $7,000 cashier's check for the $5,000 car. The buyer

tells you that he

already had a cashier's check for $7,000, but he trusts you to send him back the extra $2,000. You

think the buyer must be legitimate -

after all he is trusting you to give back the extra $2,000. You deposit the $7,000

check, sign over the title, and send the buyer $2,000 in

cash. A week later the cashier's check is returned as

counterfeit, and now you have lost $12,000.

What can you do to protect yourself? Call the financial institution that issued the check and verify that they issued

the item. The

financial institution should be able to verify the amount, payee, date issued and the signature on the

front of the check. Don't use the

information printed on the check to contact the financial institution. Use a phone

book or Internet search to locate the phone number.

Don't sign over the title or release goods to a buyer until you

have verified the check. To be really sure, after depositing the check, wait

at least 15 business days. Contact your

credit union to see if the check has been returned before releasing sold goods or signing over

ownership. If you can't

confirm that the item was issued or that the check has cleared, consider cancelling the transaction. For local

transactions, consider meeting the seller at their financial institution, and have the bank or credit union give you the

check directly. That

way you can be assured that it is real.

Remember that genuine cashier's checks are as good as cash, but the fake ones can look just like the real thing. If

you think that you

have been the victim of fraud, contact the Internet Crimes Complaint Center (IC3). The IC3 was

founded six years ago as a partnership

between the FBI and the National White Collar Crime Center (NW3C). The

NW3C is a nonprofit organization which assists state and

local law enforcement in fighting cyber and economic crime.

Find out more about the IC3.

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Laws and the Equal Credit
Opportunity Act.