Beware the stimulus check scam
Filed under: Ripoffs and Scams, Fraud
With the proliferation of news stories about fake check scams, you think consumers would be smart enough not to fall for them. Obviously, that's not the case.
There's a simple rule consumers can follow which will protect them 100% of the time: There's no such thing as a free lunch. If someone is telling you that you won a lottery you never entered, you've inherited a large sum of money from a relative overseas who you've never heard of, or the government is giving you thousands of dollars just for kicks.... Run the other way.
The latest swindle is a "stimulus check" that has popped up in amounts as high as $7,000. The checks look authentic, which is no surprise considering the technology scammers have to work with. Consumers have reported receiving a check in the mail with a letter that says they can get even more money if they call a toll-free number (and give up some personal information, I'm sure).
Of course people are being swindled in part because they've heard of the zillion dollar stimulus package that the Obama administration is pushing. But that's no excuse for being silly. First, the package hasn't even passed yet. Second, even if it had, it's too soon for anyone to be receiving any money yet. Third, no individual is going to receive thousands of dollars with this stimulus.
Consumers shouldn't be fooled, either, by the fact that a check has "cleared" their bank. If you take the chance of actually depositing one of these fake checks, you should wait at least a couple of weeks before trying to withdraw any of the money. Even if a check "clears" within the first few days, the bank still has time to declare it counterfeit and take the money back from you.
If you did get swindled by one of these scams, don't worry. It happens to the best and the brightest too. A Houston law firm is out $182,500 because they fell for a fake check scam. They deposited a counterfeit check for $367,000, and then sent $182,500 to their "client" after they thought the check cleared. It was later deemed counterfeit and the law firm was on the hook for the funds.
A few words to the wise: Be suspicious of any free money offered to you, especially if it comes with strings attached (like asking for personal information or bank account data) and the sender is urging you to cash the check quickly.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
The latest swindle is a "stimulus check" that has popped up in amounts as high as $7,000. The checks look authentic, which is no surprise considering the technology scammers have to work with. Consumers have reported receiving a check in the mail with a letter that says they can get even more money if they call a toll-free number (and give up some personal information, I'm sure).
Of course people are being swindled in part because they've heard of the zillion dollar stimulus package that the Obama administration is pushing. But that's no excuse for being silly. First, the package hasn't even passed yet. Second, even if it had, it's too soon for anyone to be receiving any money yet. Third, no individual is going to receive thousands of dollars with this stimulus.
Consumers shouldn't be fooled, either, by the fact that a check has "cleared" their bank. If you take the chance of actually depositing one of these fake checks, you should wait at least a couple of weeks before trying to withdraw any of the money. Even if a check "clears" within the first few days, the bank still has time to declare it counterfeit and take the money back from you.
If you did get swindled by one of these scams, don't worry. It happens to the best and the brightest too. A Houston law firm is out $182,500 because they fell for a fake check scam. They deposited a counterfeit check for $367,000, and then sent $182,500 to their "client" after they thought the check cleared. It was later deemed counterfeit and the law firm was on the hook for the funds.
A few words to the wise: Be suspicious of any free money offered to you, especially if it comes with strings attached (like asking for personal information or bank account data) and the sender is urging you to cash the check quickly.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
Reader Comments (Page 1 of 7)
2-01-2009 @ 8:22AM
Ray said...
heee heee heee even some lawyers fell for it. I hope they lose their clients.
Reply
1-31-2009 @ 4:19PM
xs said...
dumbasses why would you send money back to them, id deposit the check and run with the cash. If it never cleared and didnt go into my account then oh well but if it did and i got 7 grand id keep every damn penny
Reply
2-02-2009 @ 10:40AM
Leigh said...
You would be nothing more than a thief. Taking money from somebody who cashed that check for you then not returning the money back once it was shown it was fradulant. If you did that, you would end up in jail as passing a forged check. Yes, you being the one that cashed the check is the responisble party, not the person who sent you the check. At least I wouldn't have to look at your face every morning in the mirror and know what you did.
1-07-2010 @ 2:18PM
Brenda said...
XS Yea...smart go directly to jail for fraud.....you feel smart now?
2-01-2009 @ 2:16PM
kevin said...
when you get one of those fake checks in the mail for deposit of like $4.23 or something like that... Get the routing and account number off the bottom of it.. and print out another check in whatever amount you want... that would stick it to them... LOL..... Think about it.. not saying that I would do that.. but it would be really funny if it worked... LOL
Reply
2-01-2009 @ 6:39PM
SONJA said...
Kevin.. don't throw the junk mail in the trash... just print "return to the sender".. the junk is returned and they have to pay for it's delivery.. the news will get around in the junk mail business and your name will be deleted from their pester list...
There are company's the do the junk mail for magazines, products, corporations, etc..
2-02-2009 @ 9:04AM
CindyfromIndy said...
Sonja, I used to do that all the time!! Notice I said "used to" because now I hardly get junk mail at all. They hate it when it costs them the $$. I also tell those "sounds like" charities run by corporations like CDG and the like that I would be more than happy to contribute a "non-deductible" donation to their cause. Then when they send me that pitiful sticker or card, I keep it and send nothing. After a few times of that, they really do take you off their list!!
2-01-2009 @ 7:58PM
jmjmosley said...
I'm a senior citizen on a fixed income. I'm on the do not call list, so I'm not bothered by telephone solicitors. But every day I get something in the mail from someone wanting money or trying to sell me something. I don't throw it in the trash, I shred it and then it goes in the trash. If it sounds to good to be true, I figure it is.
Reply
2-01-2009 @ 7:01PM
barbara said...
I too am a senior citizen. But, what I do is tear up the unwanted mail(unusally the ones from credit card companies) and send them back in their prepaid envelopes so they have to pay the postage and it makes me feel better. If enough of us did this it would cost them a pretty penny in postage.
2-01-2009 @ 7:09PM
ms.r said...
most of the do not call list fail i have done this time an time again for me an the mom n law .after so long they over ride them. best this to do is just let your mashine answer an call person back or use the id if you have it
2-01-2009 @ 3:16PM
McMom66 said...
You know what they say. . . There's a sucker born every minute. Personally, I don't know how anyone could be so stupid as to go along with these scam artists. WAKE UP PEOPLE!!!
Reply
2-01-2009 @ 3:18PM
dallasdalpat said...
STUPID PEOPLE ,GETING SOMETHING FOR NOTHING, WENT OUT IN THE STONE AGE!
Reply
2-01-2009 @ 3:19PM
maxiesmom067 said...
The ignorance some in this room exhibit about banking is absolutely staggering. I hear you're just the type Obama's looking for.
Reply
2-01-2009 @ 4:06PM
Susan said...
You're a dumbass.
2-01-2009 @ 5:58PM
uhhhhhhok said...
Why does anyone feel it is OK or right to make a comment about something that has NOTHING AT ALL to do with the story!Get a life!
2-01-2009 @ 3:37PM
JoAnn said...
I have a better one for you,UPS delivered a check wraped in a piece of typing paper in a official envelope for $4253.36,We thought it was from H&R block owing us for their screw up.
The check looked real until we looked closer.Just be careful,It blew me away when I opened it I am trying to track it down from UPS,So people be aware! Fedex UPS .What the hell were they thinking?
Reply
2-01-2009 @ 3:45PM
cheri said...
I actually got one of these checks. I knew it was a scam from the begining but read the fine print anyway....Just to see, after reading, how ANYONE could fall for this. Mine was really just a LOAN. It said I could get more IF i called the number. I shredded it.
Reply
2-01-2009 @ 3:49PM
Karen said...
Don't be so sure that those of you who are so judgmental, cannot be fooled. Stop calling others stupid when in fact, anyone can be tricked by these scams. Your day may still come. Let me remind you, if your computer gets a virus, you've been scammed, so stop talking.
Reply
2-01-2009 @ 4:15PM
kathy said...
Anything that you get from strangers for free has the stench of scam all over it
Reply
2-01-2009 @ 4:21PM
VALENTINE said...
How do I find Job Traveling Courier or Job to work at Home?
Reply