Fraudulent Cashier Checks Back on the Scene

Fraudulent Cashier Checks and other fake check scams are making the rounds again with credit unions across the country reporting an uptick in the number of fake cashiers’ checks being presented by members.

There are many versions of a fake check scam. However, the result is the same. Scammers lure consumers into depositing a cashier's check, money order, or other checking instrument from someone that they don't know and wiring or sending money to the scammers. A check may take considerably longer to clear the financial institution that issued it before the funds can be collected. It could take days or even weeks to discover that the deposited check was fraudulent.

When the check is discovered to be fraudulent, the damage may already have been done. Once a victim wires or sends funds from such a check, he or she may be responsible for reimbursing the financial institution for that amount. Typically, the financial institution will not cover the financial loss and expects the victim to pay the difference.

The Federal Trade Commission has a fake check scam webpage filled with facts on the many tricks scammers use: These checks can be hard to recognize. They may be printed with the names, addresses, and logos of legitimate financial institutions. Consumers are reminded to be on the alert and to not be pressured into wiring funds or sending money after depositing a check.

If you think you or someone you know was the victim of a fake check scam, consider taking the following steps:

  • Contact your local law enforcement agency to report the scam.
  • Contact your state's attorney general. Contact information for each state's attorney general can be found on the National Association of Attorneys General website.
  • File a complaint with the Federal Trade Commission. Your complaint will be filed into a secure online database, which is used by many local, state, federal, and international law enforcement agencies. Complaints from consumers help detect patterns of fraud and abuse.
  • If you or the victim is an older adult or a person with a disability, contact your local adult protective services agency. You can find local support resources using the online eldercare locator or by calling 800.677.1116.

NCUA's Fraud Prevention Center offers information about avoiding frauds and scams on its MyCreditUnion.gov website. NCUA also released a two-part video series for consumers on fraud prevention techniques that can be viewed HERE.

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