Here's how it works. You say "yes" to a phone, mail or Internet offer, for which you are to receive an advance payment as a bonus. When the check arrives it's for an amount much larger than what you were expecting, and you are instructed to deposit the check and wire the excess to a third party. You follow these instructions and weeks later, your bank informs you that the check you deposited was fraudulent. The money you transferred is gone, and depending on the circumstances, you may be liable for all of the money deposited, even if it's far beyond what you have in your account.
Be skeptical of unsolicited offers that involve up-front payments, sound too good to be true, or otherwise don't make sense. No legitimate company is going to send you an extremely large check with instructions to take out what's yours and return the rest. Any pressure to send a payment fast should raise red flags.
A cashier's check can be a safe way to receive payment for services or items you've sold. Funds are placed in a special account at the bank, so payment of cashier's checks is guaranteed. Unfortunately, fraud investigators report that crooks are producing fake cashier's checks using personal computers.
How can you protect yourself? First, insist on a cashier's check drawn on a local bank or a bank that has a local branch. Take the check to the bank right away to make sure it's valid. If you can't get a cashier's check from a bank with a local office, confirm that the out-of-town cashier's check is good by calling the bank.
Be sure to use the phone number from a reliable source-such as directory assistance or a telephone directory. Under no circumstances should you depend on a number provided to you by the person giving you the check, including any phone numbers that may appear on the check. If the check is fraudulent, telephone numbers on the check or provided by the person giving you the check could connect you to a partner in crime.
Debbie Wilburn is County Agent/Family and Consumer Science Agent with the Hall (770)535-8290 and the Forsyth (770)887-2418 County Extension Service.
http://accesswdun.com/article/2003/2/183634