How to Avoid Check Scams

Check cashing or money scams are running rampant these days, taking desperate and naive people for a ride into financial ruin.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Phone
• Paper
• Pencil
• Internet/Computer

1. If you receive a check in the mail unexpectedly and you don't recall entering a contest, reversing a charge, or getting a refund, check the return address. Is it anyone you recognize? Even if it is, keep all the packaging and open it. Immediately pick up your phone and look for the bank information on the check.

2. Look up, call information, or call a phone number if available. If you call a number on an enclosed letter, write down EVERYTHING you talk about, who you speak to, when you started and ended the call, and the answers to the following:
   Where are you based?
   Why did I receive this money?
   What sort of business relationship do I have with you?
   When was this relationship started/by who? (if applicable)

3. Call the bank it was issued at and ask for an associate to verify a check you received, explaining you are worried it is a fake. They will either have a person who deals with these issues or a branch employee can help you. Give them all pertinent information on the check and/or letter. Make sure you get everything done and said in writing for later.

4. Usually, calling the bank branch it is written from decides whether it's a fake or real check. If they verify it, check with your bank to be absolutely sure.
   If the bank has no idea, it is a closed account, it has no money, it has been returned by others; don't panic. So long as you don't deposit or cash this check, no harm will come.
   
   Turn this check into the police or follow directions from the banking officials.

Tips & Warnings

• If things seem right after these steps, make sure to leave the money be for at least one week. This will give it time to clear and, if fraud, have the money withdrawn again.
• Always keep in touch with your bank and the bank it is supposedly drawn off. Prudence will not be a bad idea here, despite the desperate times.
• When calling the company/bank it's affiliated with, you can block your number with star 67. This will keep phishing agents from getting more information.
• Checking the BBB will also help clear things up.
• If you deposit a fraudulent check into a bank account or cash it, you will pay the price.
• Don't give anyone except employees of your own bank information on your account. The "bank" it's drawn off of may be part of the scam.