Skowhegan Savings News and Maine Farmhouse Coupon

If the Check is Too Good to be True...

Check Scam Example Consumers are more aware and vigilant about fraud and scams originating via the Web and their email, but criminals are still using pen and paper in attempts to get rich quick at your expense. Recently, a bank employee received a letter at her home address indicating she was a sweepstakes winner, and needed to deposit the enclosed check for $3,926.69 to cover the insurance and government fees on the "winnings" of $250,000. The check looked legitimate, but there were red flags everywhere. Here are a few of them:

1) Letterhead, check and postmarks were all different addresses and names. Nevada and British Columbia for the letter, and the check came from Greensbord (Greensboro, misspelled), NC.

2) The letter announcing the recipient had won something without previously purchasing anything or entering a contest.

3) Instructions to keep the letter confidential, keep it in a safe place at home. And to NOT call the claims agent until after the check was deposited.

Check scams are one of the most common schemes to get real money from fake sources. Generally, the victim is asked to send a portion of the funds (drawn on nonexistent accounts or money orders) to the scammers for a larger return that never materializes. Unfortunately, these scams can also affect legitimate businesses whose identities have been stolen to make the checks or money orders look "real." In this case, the check looked to come from a real freight company in North Carolina - and looked close enough to the real thing that it could probably be deposited without a second glance.

What can you do to recognize and prevent check scams as a consumer or business? Here are a few tips:

For everyone:

If you receive unexpected notice about winning a sweepstakes, lottery, or grant you did not enter or apply for, it's probably not true.
The notification has misspellings and/or asks you to deposit or send money before collecting your winnings.
If you receive a suspicious notification, notify your local law enforcement agencies and the Federal Trade Commission. There are additional tips and contact information on the FTC's website.

For businesses:

Sign up for electronic notifications with your bank, other creditors, and service providers. Also, monitor accounts and bills and immediately report any suspicious activity to the originating company. You can also obtain a commercial credit report for your business.
Protect your EIN (employer identification number), account numbers, and other personal information.
Inventory documents you maintain. For those you must keep, store them in a secure location. Use a cross-cut or confetti-type shredder for those you discard.

Federal law often allows access to funds within 1-2 days of a deposit, but if it is fraud, you are ultimately responsible for the funds - which can typically run between $3,000-4,000. Unsure if you can spot a check scam? Take an online quiz: http://www.fakechecks.org/index.html. Be aware, if it's suspicious, contact the authorities, and if it is too good to be true, it probably is.