At First United Bank & Trust we hold the security of your confidential information and your funds in the highest regard. Recently, there has been a rise in check fraud scams that are targeting both consumers and businesses.
Fake checks continue to be one of the most common instruments used to commit fraud. Before you deposit a check you weren’t expecting or wire funds to an unknown recipient, here is what you should know
Tips to prevent fake check scams:
- Even if the check has “cleared,” you may not be in the clear. Under federal law, banks must make deposited funds available quickly, but just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check or money order. If you have any questions about whether or not a check is good, talk to your banker. Be sure to explain the source of the check, the reasons it was sent to you, and whether you are being asked to wire money back.
- Don’t be fooled by the appearance of the check. Scam artists are using sophisticated technology to create counterfeit checks that look like the real thing. Some are counterfeit money orders, some are phony cashier’s checks and others look like they are from legitimate business accounts. The company’s name may be real, but someone has dummied up the checks without their knowledge.
- Never ‘pay to play.’ There is no legitimate reason for someone who is giving you money to ask you to wire money back or send you more than the exact amount —that’s a red flag and that’s a scam. If a stranger wants to pay you for something, insist on a cashier’s check for the exact amount, preferably from a local branch.
- Do not respond to online solicitations for “easy money.” Social media scams like card cracking may offer “quick ways to earn extra cash,” but keep in mind that easy money is rarely legal money.
- Verify the requestor before you wire or issue a check. It is important to know who you are sending money to before you send it. Just because someone contacted you doesn’t mean they are a trusted source.
- Report any suspected fraud to your bank immediately. Bank associates are experts in spotting fraudulent checks. If you think someone is trying to pull a fake check scam, don’t deposit it—please report it.
- Beware of fake check scams targeting small business owners. If you receive a check from an unknown individual requesting a refund, it’s a scam. Stay alert and be cautious to avoid falling victim. For information on how First United can help you protect your business against fraud, click on the link below or contact us today.
