Your Checks Should Check Out

From cyber scams to money scams, it’s important to stay informed about what actions to avoid and how to recognize malicious attempts. But what about less-talked-about scams like fake checks?  

With check writing scams, someone you don’t know will offer to send you a check, commonly disguised as a gift or refund. Then the check you receive will be for more than they promised you. Once you’ve cashed the check, they’ll ask you to send back the difference. But it’s not until after you send the extra money that you and the bank realize the check is fake.  

For example, if you were expecting a $600 check but received an $800 check, you’d be asked to send back $200. However, since it’s a counterfeit check, you’d be without the $200, and you wouldn’t have the “remaining” $600 either.  

Taking extra precautions is essential to avoid financial loss or injury.  Here are some tips to help you avoid fake checks and keep your money in your pocket (or the bank).  

Never use money from a suspicious check to send funds back 

• Scammers often ask you to use money from a check to send gift cards, money orders, or wire money back to them. Don’t fall for it! 
• Once you send them these funds, you’ve basically given them cash, and it can be very hard to get it back.  

If they require you to pay for a prize, just say no 

• If something is actually free, you wouldn’t be asked to pay for it.  
• Scammers will try to reel you in with the idea of a ‘free’ prize/gift, but then say you have to pay to get it.  

Make sure checks are for the discussed amount  

• If a check you receive is over the amount you were expecting, don’t accept it. 
• Scammers will ask for that extra money back and leave you to deal with the fake check at your bank.  

Don’t accept money from people you don’t know 

• If a person or company you don’t know is trying to send you money, it’s likely a scam.  
• There’s usually a premeditated reason for sending checks, so if someone unexpectedly wants to send you money, it’s best to say no and save yourself the trouble later on.  

The moral of the story here is that if you’re unsure about it, don’t send anything. Scammers often try to make the situation seem too good to be true, which should be your first red flag. Plus, it’s better to turn down these potential funds than lose your own money.  

If you have any questions or are considering starting your homebuying journey, find a loan officer near you today!  

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.