Check Fraud Scams are a serious and very deceitful way in which fraudsters can steal money from you. Educating yourself on spotting red flags signifying fraud and how to deal with these threats is imperative and may save you from becoming a victim of fraud. One of the major methods of fraud many are naïve to is check fraud scams.

These scams target those selling items over the internet or other third party outlets by paying for the recently purchased goods with a fraudulent check or other method of payment. The scam begins when the fraudster responds to a classified ad and offers to purchase the item using with a check, they then come up with a reason for writing the check for more than the purchase price of the item and ask the seller to wire the difference after the check is deposited.

Because the check takes up to 7 days or longer before the CU knows the check is fraudulent and the check bounces, the scammer is long gone, leaving the member liable for the entire amount. The scam works because the check or money orders, even though counterfeit, looks legitimate and tellers often have a hard time determining that the check is bogus.

Protect yourself using these tips:

• When selling an item on-line confirm the buyers name, street address, and telephone number
• Do not accept a check for more than the amount of your sales item
• If possible, try to meet face to face for the transaction
• Refrain wiring funds to a buyer unless you are absolutely sure of the buyer’s identity