Counterfeit Check (Cheque) Scams are all over the Internet

The amount of counterfeit checks (cheques) being circulated via various Internet scams, and even the classifieds (paper media) is on the rise.

A new trend is also being seen, where people are getting these counterfeits items in the mail (unsolicited). Some of us, who watch this closely, suspect they are data mining information off job sites, like Monster.com and Craigs List.

Last April, I did a post about a Better Business Bureau (BBB) employee, who got a lot of negative attention after she accepted a job to cash bogus intruments and send the money overseas.

Common scams in which these checks are sent for someone to cash and wire the money back to fraudsters are the check cashing (job), lottery, auction, secret shopper, romance and Nigerian letter varieties.

According to the National Consumers League, counterfeit checks schemes rank near the top of the scams reported to them by victims.

High quality counterfeit money orders and travelers/gift cheques are making the Internet fraud scene, also. In the recent past, these have included Postal Money Orders, Travelers Express (MoneyGram) Money Orders and most recently, American Express Gift Cheques.

The NCL has an interesting page on their site about the most prevalent scams reported to them in 2007, here.

And don't expect the bank to tell you (whether or not) a check is good. Since they have no liability in the matter, they will often say the item is good, give you provisional (temporary) credit, then take the money away from you when it is determined to be a fraud.

Here is a previous post about how this occurs:

Don't Trust a Bank to Tell You Whether a Check is Good, or Not

Some of these scams direct you to places like Walmart to cash the item, and wire the money back to them, also. I've had readers leave comments and send me e-mails about getting arrested after attempting to pass one of these items at Walmart.

Before we smear Walmart, consider that with the amount of these items in circulation, its getting harder and harder to determine, who is and who is not, really a victim.

Check fraudsters are now posing as victims, and are scamming the scammers by cashing the items. If they are caught, they claim to be innocent victims.

I've personally spoken to a few of these alleged victims, and for some reason; they never seem to have wired (or sent) any of the money back?

Interestingly enough, the scammers love to direct people to Walmart (probably because they cash checks and wire money), but they could care less if you get arrested.

The bottom line is that even if the check is initially considered good, it can easily return, and the person passing it is held responsible.

Deb Radcliff (cybercrime author) did an interesting blog post about how law enforcement, and the companies having their brands used on these checks aren't going after the cuplrits, here.

Unfortunately, they normally don't have much to go on, and the crime is normally initiated from a foreign country.

Fraudulent Gift Cheque Update from American Express

Since September, I've been writing about counterfeit American Express Gift Cheques showing up in a variety of Internet fraud schemes.

Readers have reported receiving these items primarily as a result of work-at-home scams, but they can show up in a variety of Internet fraud come-ons. They might also show up in secret shopper, romance, lottery and auction scams.

The fraudsters want you to cash these counterfeit gift cheques and send (normally wire) the money back to them. When they are discovered to be fraudulent - you end up taking the "rap" and they disappear in an "electronic mist."

Several readers reported being asked to wire the money to Nigeria and the United Kingdom. I recently wrote a post based on large amounts of counterfeit financial instruments being found at airports in the United Kingdom (allegedly from Nigeria), here.

Most of the counterfeit gift cheques, seen thus far, have been in the $500.00, or $1000.00 denominations. Note American Express doesn't issue gift cheques for more than $100.00.

American Express states in their bulletin that gift cheques are safe when verified prior to negotiating them. Anyone can call them and verify an item at 1-800-525-7641.

Unfortunately, a lot of people don't verify these items. Many people have also deposited them, initially received credit, and then had their accounts garnished when the items returned.

I've also had a couple of people write me and say they were arrested for trying to cash them. Presenting counterfeit financial instruments is considered a crime in most places. It will be up to the person arrested to prove they were a victim of a scam and not involved, intentionally.

American Express gift cheque bulletin, here.

Listed below are the posts, I've written since September, along with some scary comments from readers:

Counterfeit American Express Gift Cheques

Counterfeit American Express Gift Cheques (Update)

American Express Gift Cheques Being Circulated in Internet Scams

American Express gift cheques aren't the only items that have been counterfeited and passed via Internet scams. In the past we've seen a lot of Postal Money Orders and Travelers Express (MoneyGram) money orders being counterfeited, also.

Check Cashing Jobs - A Quick Way to Drain Your Bank Account and Maybe Go to Jail

I got this e-mail today inviting me to make $5,000.00 a month (minimum) working a couple of hours a day. Of course, I need to use my own bank account - which will be drained of all it's funds - when the bank discovers the transactions are fraud. If it sounds too good to be true, it probably isn't.

Recently, I wrote about how banks often clear these checks - and even sometimes verify them as good - then take your money anyway. Of course, since in most of these instances, the money has been sent (normally wired somewhere); the person who negotiated the item is left holding the bag.

Welcome to the "Check Cashing Scam," that organized fraud gangs are using to recruit people to take all the risks - while they collect all the "real money" via Western Union, or MoneyGram.

In reality, the people who do this, are being conned into laundering fraudulent transactions - mostly from auction sites - such as eBay.

Recently, we saw Australian teenagers and a Better Business Worker get caught up in this scam. Please note that the some of the Australian teenagers are facing charges - which can be another "nasty" side-effect of getting involved in this activity.

Here is an example of one of the come-on letters (note the reference to identity theft at the bottom):

Dear Jobseeker,

This offer was sent to you in response to your resume on www.monster.com.

The job we are offering requires only two hours per day during which you will check your e-mail and go to your bank. You will be given a position of representative within our company which means that you will be a collaborator and not an actual employee. There is no experience required; only the knowledge of using an e-mail account and a bank account. It does not matter if you already have a job or not if you have two hours to spare each working day.

What is required of you in order to be eligible for this job:

- Honesty, responsibility and dedication to this new line of work;- An existing active bank account that you will use to cash money orders and checks (no information is required about your bank account);

- Access to the internet and a small amount of free time every day in order to check your e-mail twice per day (once in the morning and again in the evening).
What we offer during this job:

- Flexible working time: you chose what hours you want to work;- Working at home: you only need to check your e-mail and make trips to your bank;- Professional support via e-mail;- No selling involved no kit to buy, we will not charge you anything, and you will not handle any merchandise;

- Minimum pay: $5,500 (from commissions and a $900 monthly salary);- Commission: 10% off of every money order/check that you cash, instantly money in hand that you will deduct from the cashed amount. If you receive a check of $1,000.00 your net income is $100.00, our company supports any fees. You can receive a maximum of 3 checks/money orders per day which will earn you between $300 and $900 cash in hand each day.

If you are interested our staff will send detailed information about the contract which you must sign in order to get started. We reserve the right to keep you on probation for the first month, meaning that we will decide at the end of the first month whether you will be a permanent employee or not.

It is very important for us to know how willing you are to work for our company. Also, we are keen to know about your skills in contacting other people and above all we are looking for candidates that are ready to work and seek to self improve all the time. Our company just started this program and we need personnel loyal to our company and our program. We believe that we represent an excellent opportunity for everybody, a chance to start a new career without much knowledge but with great perspectives. Even if you are not willing to grow with our company this still remains an excellent opportunity for those who need a temporary or a secondary job.

We are confident that you will make the right decision and hope to hear from you soon.

IMPORTANT:

-You must be over 21 years old.-You need to live in U.S.A. (legal residents and immigrants can also apply) and have an active bank account.

If you meet these conditions please contact us by replying at this e-mail address to receive the contract and detailed information about this job.

We will never ask you for bank name, bank account number, routing number, credit card, passwords, ssn number etc. If anyone asks for those on our behalf please do not give out this info. This is to ensure that you will not be the victim of an identity theft case.

Thank you

Counterfeit Travelers Express (MoneyGram) Money Orders Showing Up in Internet Scams

Got a comment on an old post today about a reader being scammed by cashing counterfeit Travelers Express money orders. The reader was duped into thinking they were working as a Secret Shopper and has lost $7,000.00. Here is the previous post, I am referring to:

Secret Shoppers Scammed

Did a little checking via some of my sources and found that counterfeit Travelers Express money orders are showing up in all sorts of internet scams in the past week.

Thus far, these money orders are showing up mostly in Advance fee fraud (419) scams.

The Advance Fee scam is where a ruse is used to get a victim to send them money (nowadays normally wire-transfer) in anticipation of riches (or sometimes love) to come. The best known is the "Nigerian Letter," but the activity has mutated into romance, lottery, auction, check cashing, work at home and reshipping (as mentioned below) scams.

In a lot of the more recent Advance Fee activity, the victim is tricked into involving themselves in criminal activity, whether it be forwarding stolen merchandise, or negotiating bogus financial transactions and sending the funds elsewhere.

Please note that cashing counterfeit items is illegal and people have been arrested for passing them.

Here is information on how to verify Travelers Express Money Orders from their site:

"If you have retained your money order number, MoneyGram offers 24-hour automated money order status information by calling 1-800-542-3590. MoneyGram customer service representatives are also available from 7 a.m.-8 p.m. CST Monday-Friday and 8 a.m.-5 p.m. CST Saturdays."

There is more information on their site, which can be viewed by clicking on the title of this post.

Please note that automated systems aren't always accurate and that money orders are notoriously high risk instruments. Most money order companies leave themselves with an "out" in case the instrument is later discovered to be bad.

The old saying is "Caveat emptor," or "let the buyer beware." If it seems to good to be true, it probably isn't.