Be
Suspicious About Wiring Money Back After Cashing a Check
FTC, National Consumers League Offer Information for Fraud
Prevention Month
The set-up for the scam can be different every time: maybe
they are buying something you advertised, paying you to do
work at home, or giving you an “advance” on a
sweepstakes. But, the Federal Trade Commission and the National
Consumers League warn that after the initial hook, all “check
overpayment” scams end the same way – with a request
for you to wire money back. The scams are the fifth most common
telemarketing fraud and the fourth most common Internet scam
reported to the NCL. The warning about this type of fraud,
often perpetrated across borders, comes during March, Fraud
Prevention Month.
Here is how the scam operates: the person you are doing business
with sends you a check for more than the amount they owe you,
and then instructs you to wire the balance back to them. Or,
they send a check, and tell you to deposit it, keep part of
the amount for your own compensation, and then wire the rest
back for one reason or another. The results are the same:
the check eventually bounces, and you’re stuck, responsible
for the full amount, including what you wired to the scammer.
The checks in these scams are fake, but they look real enough
to fool bankers. The FTC and NCL offer these tips for avoiding
check overpayment scams:
Know who you’re dealing with – independently confirm
your buyer’s name, street address, and telephone number.
If you’re selling something over the Internet, say “no”
to a check for more than your selling price, no matter how
tempting the plea or convincing the story.
There is no legitimate reason for someone who is giving you
money to ask you to wire money back.
These tips, and others, are available online from the FTC
as part of the section on cross-border fraud of OnGuardOnline.gov,
and from the National Consumers League at fraud.org. OnGuard
Online is a multimedia, interactive consumer education campaign
launched last fall by the FTC and a partnership of other federal
agencies, the technology industry, and consumer advocacy organizations
including the NCL. The site covers online safety topics, including
spyware, identity theft, spam, and cross-border scams. There
is no copyright on the quizzes or other information on OnGuardOnline.gov;
companies and organizations can download the information and
use it in their own computer security programs.
Consumers should report check overpayment scams to their state
Attorney General, the National Fraud Information Center/Internet
Fraud Watch, a service of the National Consumers League at
www.fraud.org or 1-800-876-7060, or the FTC at www.ftc.gov
or 1-877-FTC-HELP.
The FTC works for the consumer to prevent fraudulent, deceptive,
and unfair business practices in the marketplace and to provide
information to help consumers spot, stop, and avoid them.
To file a complaint in English or Spanish (bilingual counselors
are available to take complaints), or to get free information
on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP
(1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.htm.
The FTC enters Internet, telemarketing, identity theft, and
other fraud-related complaints into Consumer Sentinel, a secure,
online database available to hundreds of civil and criminal
law enforcement agencies in the U.S. and abroad.
To
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