A Thousand Words

Beware of scammers: Cashier's checks
Sep 29, 2024
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Online scams are everywhere. There are many different types. People all over the world are making a living simply by taking other people’s money. A scammer’s full-time job is to identify a victim, establish a line of communication, gain their trust and take their money. Some scammers will use a fake cashier’s check to get you to send them money.
A legitimate cashier’s check is issued by a bank or financial institution. The funds are guaranteed because the financial institution earmarks the funds in the account when the check is issued to be paid to the appropriate party when it is cashed. In today’s world, however, this is not always the case. Cashier’s checks are now being forged and these fraudulent checks are being sent to unsuspecting victims who believe that the check is genuine.
Most fraudulent cashier’s checks are very convincing. They will contain the information of the financial institution that issued the check. Some of them will even have a phone number. The person receiving the check may believe that it is legitimate and may not take steps to confirm its authenticity.
So how exactly does a scammer get money by sending fake money? Here are some examples of scams using fake cashier’s checks.
Let’s revisit what a scammer needs to do first in order to execute a scam:
1. Establish communication with the intended victim
2. Get that person excited about the positive outcome of the transaction. The scammer will always be positive and encouraging.
3. Gain the victim’s trust.
Sending someone money is a great way to complete all three steps above simultaneously. Once the victim has the check, sees the amount of the check made out to them, and contacts the scammer – the scammer has the advantage.

Credit: Pexels - woodysmedia
There are many scenarios that are used to explain why the victim is receiving the "money". Here are a few common ones.
• Make money at home scams: This scam is presented as a type of check processing job. You receive a cashier’s check with instructions to deposit it into your account and forward funds from your account to someone else’s. You get to keep part of the check as your processing fee. The first few checks may be legitimate and in smaller amounts. This helps convince you that the job is legitimate. In most cases you will eventually receive a fraudulent check in a larger amount. The instructions will indicate that you can keep a larger portion of the money. Since the previous checks were authentic, you believe this one is too. You transfer the funds from your account as instructed. By the time you discover that the check was fake, your money is gone. Criminals often use this tactic as a way to get innocent civilians to launder their money. No one wants to go to jail for money laundering. At least not anyone that I know.
• Online shopping scams: You receive a fraudulent check with an offer to be a “mystery shopper”. The purpose may be to test new products and give an honest review. You think, “Yeay, free stuff!” The instructions are usually for you to purchase items at specific sites online, transfer a portion of the check somewhere else, and keep the remaining amount. By the time you discover that the check was a fake; the items have been purchased, the fund transfer has been completed – and there is no remaining amount. You have used your own money to purchase the items and transfer the funds.
• Payment for items purchased: This scam can be done online or in person. A buyer presents a cashier’s check to pay for an item that you are selling. The check is for more than the selling price. The buyer claims that the additional amount of the check is a mistake. They will ask you to reimburse them for the difference. You send them the amount above the selling price. By the time you discover that the check was a fake, they may have possession of the item you “sold” them – and your money. That’s a win-win for them and a lose-lose for you.
• Windfall scams: These scams usually claim that you have just come into an unexpected amount of money. Often the claim is that the money is coming from a foreign source; such as unexpected winnings or a long lost ancestor. If you’ve recently been researching your family history online or posted details of a recent vacation on social media; that could increase the odds that you will become a target. Along with the check there will most likely be a wonderful story of how lucky you are and assurances that the money is truly yours. The instructions will detail the need for you to pay taxes on the money or perhaps a processing fee. Just pay the required amount and the money is yours. Unfortunately, there are no winnings. There is no inheritance. Pay the required fee and you’ve paid for nothing.
• Rental scams: If you own more than one residence, such as a vacation home, you may be targeted by a rental scam. The scenario will most likely be a plea for help from someone who needs a place to stay immediately. The reason may be a new job, or maybe they need to be close to someone that they need to help. How can you refuse? They need your help. You receive a check for first and last month’s rent, and the security deposit. After you deposit it, they tell you that the situation has changed and they will not need to rent the property. You can keep the security deposit, just refund the two months rent to them. If you refund the rent before you find out that the check was fake, you will be out that money. Your good deed of opening your home to them becomes an extra good deed of paying them to lie to you.
Scammers are coming up with new ways to extort money from people every day. They use tactics that most people have never even thought of, which makes it harder to identify a scam. If you are contacted by anybody trying to sell you a “make money by doing practically nothing” story, don’t fall for it. Unsolicited “too good to be true” stories are almost always a scam. Do thorough research first. Every time. Always confirm the legitimacy of any offer. Scammers identify needs, wants and desires and exploit them for your hard-earned money. Future posts will identify more scams that you should be aware of, and resources that can help you identify a scam.
Be safe. Be vigilant. Be honest.
Source:
https://dfi.wa.gov/financial-education/information/cashiers-check-scams