SCARS Institute's Encyclopedia of Scams™ RomanceScamsNOW.com Published Continuously for 25 Years

SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years

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The Problem With Fake Checks & Job Scams!

A BBB Insight

Presented by SCARS

How Big Of A Problem Are Fake Checks?

Two Things Everyone Needs To Know About Checks:

  1. Having funds credited to a bank account does not mean the check is valid. Federal banking rules require that when someone deposits a check into an account, the bank must make the funds available right away – within a day or two. But when the check works its way back to the bank that supposedly issued the check and it is discovered to be counterfeit, the bank has the right to recover the money from the account holder.
  2.  Cashier’s checks and postal money orders can be forged. A cashier’s check is guaranteed by a bank, drawn on the bank’s own funds and signed by a cashier.
    • Cashier’s checks are treated as guaranteed funds because the bank, rather than the individual account holder, is responsible for paying the amount of the check.
    • Cashier’s checks are commonly required for real estate and brokerage transactions. If a person deposits a cashier’s check, the person’s bank must credit the account by the next day. The same holds true for postal money orders. But they can be counterfeit.

Common Fraud That Employs Fake Checks:

The majority of complaints about fake checks involve some sort of employment. But for fraudsters, the possibilities are almost endless, so the frauds covered below are far from exclusive.

Again, the central message is the same – just having the money credited to a checking account does not mean the check is good, and you should never have to pay in advance to get a job.

Job Scams Involving Fake Checks

While 36% of those responding to a BBB survey said that they had encountered fake checks scams, the actual number is likely higher. Fake checks are a growing fraud problem with a variety of different job scams employing them.

Bogus check fraud was the subject of a 2018 BBB study. Most fake checks are business checks, often stolen by scammers from mail and then altered by  Photoshop or similar programs. They usually look professional, and victims believe they are real. Scammers may change the phone number of the business on the check so that it is answered by another scammer if someone calls to see if it is legitimate.

The FTC also gave fake checks a hard look in a report issued in February 2020, which found that 51% of those reporting a fake check were victims of a job scam.  The FTC also similarly reported a big increase in complaints involving fake checks, finding that they increased 65% between 2015 and 2019.

Since then, the number of reports of fake checks has increased substantially, even though the overall use of checks in general use has gone down. The banking system updates fake check fraud data every two years. As the previous BBB study on fake checks noted, in 2016 fake checks cost the banks $789 million that they could not recoup from customers, up 25% from two years before. The newest data, released in January 2020 but providing results for 2018, shows that over two years these losses went up to $1.3 billion, a 40% increase.

Banks are obviously trying hard to detect and prevent fake checks from entering their systems. They report that they were effectively able to stop 91% of these checks, preventing $13.5 billion in annual potential losses. Despite these efforts, it is clear that fake check fraud continues to be a growing problem.

Summary

Never remove money from your account after you deposit a Cashier’s Check until your bank tells you it has cleared. Even if they credit your account, it does not mean it has cleared – speak with your bank and confirm it has.

Any job that asks you to deposit cashier’s checks IS A SCAM! Period!

Our thanks to the Better Business Bureau for portions of the above.

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Always Report All Scams – Anywhere In The World To:

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Visit reporting.AgainstScams.org to learn more!

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Important Information for New Scam Victims

If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org

If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines

A Note About Labeling!

We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!

A Question of Trust

At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.

Statement About Victim Blaming

Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.

These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.

Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org

Psychology Disclaimer:

All articles about psychology and the human brain on this website are for information & education only

The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.

While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.

Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.

If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.

Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.

If you are in crisis, feeling desperate, or in despair please call 988 or your local crisis hotline.