Beware of Fraudulent Check Scams

The world is quite a different place today with the Internet and Google accessible on every one's phone compared to 10 to 15 years ago. As long as there is money, there will be scams to steal it. In this blog, I will lay out typical money laundering characteristics followed by my most recent experience with vehicle wrap advertisement.

Characteristics:

1. Text or e-mail communication only: A desperate or amateur scammer may make a phone call, but most will avoid allowing your to be able to hear their voice.
2. Lack of instructions: Just because you filled out your information on a website doesn't make it legit. Any real company looking to pay for your services will send you a contract up front with detailed instructions of how you get paid, your expectations, the company's expectation,...
3. Lack of qualifying application: Nobody is going to send someone a check without a completed application with more information than your name and address.
4. Expectation of continuing on a forward basis: They will continue sending you fraudulent checks as long as you are willing to cash them and send money to the scammers. This is the heart of money laundering, but who ever you are cashing the checks won't cash a 2nd one for you and the money laundering scammers most likely won't contact you ever again.
5. Expectation of cashing a check immediately and sending cash to someone else: This is the moment they are waiting for and is where you will get hurt and they get paid. Unless you have a decent amount in your bank account or have a long established bank account, most banks will not cash this check and give you the full amount of the check. Your bank may give you cash based on your balance not related to this fraudulent check.
6. Name Mismatch: The sender and the company on the check are 2 different entities from 2 completely different places.

If you follow the instructions, you will be one of the victims of money laundering although technically you are an accessory to the scam. You will get hit with a returned check fee from the bank or worse if you go through a check cashing facility, you will be responsible for the cash you withdrew from your bank to send, and you are stuck with having a negative bank account if you took out more than what you had before depositing the check.

Your bank or local check cashing facility can not verify the validity of a check. The check that is given to you might have all of the numbers in the right place and the bank for which it is drawn might even verify that the routing number matches the name on the account. The bank might even approve it initially, and the customer on the other end may be a victim of the bank's lack of fraud detection. 

If you read this and still attempt to cash the check, you are no better than the money laundering scum that created the check. The only way to verify is to Google the company, call them and explain your suspicion. Ask them to verify the check. It is probable that you are one of many that have called them and they are already aware of it being a scam. If it is truly legit, then why were you not able to talk to them on the phone before this.

Personal Experience
I was informed of a vehicle wrap program via text blast a couple of weeks ago. It sounded good and I was willing to advertise for someone for 3 months for $2000 a month. I filled out the information through a website and was contacted by a completely different phone number via text message.

I was informed the check was coming to me. I found it odd that they are going to send me a check before a contract. It could be possible that the contract is with the check or possible that the installer has the contract?

I followed the instruction that came with the check. It was printed on a third of a sheet of paper! I then contacted the bank and their branch office directed me to their toll free customer service. When speaking with the bank's representative, I felt like they knew about it and was in on the scam. I called them to validate the check and it appeared they wanted to gather the information that I gave them, but refused to validate anything.

I remembered from my Anti Money Laundering training that OFAC was the government agency handling foreign affairs and fraud. Apparently I was wrong or they are still shut down in the government, because their voice response system didn't want you on the phone and wanted to send me to their website. I did speak with the post master department on a different call and they were going to send me a form by mail which is the only way if I wanted to include evidence.

This whole process further iterates that white collar crime is alive and well. It rarely gets caught because there are not enough people that care about doing something about it unless it affects thousands of people and millions of dollars by one offender like Bernie Madoff.

Conclusion: I Googled the company on the top of the check and call the first phone number I found. I was greeted by a friendly young man who explained to me that I was the 60th person to call this week about this, it is fraud, the check is no good, the local police and FBI have begun an investigation and please destroy the check. I did one better and I provided a picture of the check, envelop and instructions I received today along with the text message communication. I also told me and included in the email that I would fully cooperate with the investigation and will help any way I can.

I hope this helps. It reminds me of the time I almost got scammed to send money to someone in Nigeria who was stuck there after her parents died in a car accident. Sound like another blog to write. Below is my video description of what I have laid out in this blog. I might have left something out and would be good to hear it.