Spotting a Scam

In 2019, there were 27,000 reported fake-check scams, resulting in losses of more than $28 million. Recognizing the telltale signs of a scam may prevent you from becoming a victim.

Common “Scamagories”

In most fake-check scams, the victim is told to deposit a check and then given a plausible reason why some of the money has to be returned to the sender. Common scams to watch out for include:

Mystery Shopper.

After “hiring” people as mystery shoppers, scammers send a check with instructions to deposit it in a personal bank account. Shoppers are told to wire some of the money through a money transfer service. Unfortunately, the consumer usually discovers that the check is counterfeit only after wiring the money.

Car-Wrap Deals.

Victims who agree to use their vehicles for advertising are asked to wire money from a checking account to decal installers, who never materialize to do the wrap.

Claiming Prizes.

Sweepstakes “winners” are given checks and told to send money to cover taxes, shipping, handling and processing fees.

Overpayments.

Scammers who buy items that someone is selling online “accidentally” send a check for more than the cost and ask for a refund of the difference.

Avoid Fake-check Scams

Never send money to someone you don’t know. If you are a victim of a fake-check scam, report the scam at ftc.gov/fakechecks or ftc.gov/giftcards.