About Frauds & Check Scams:

Information based on my Personal Experiences:

Here is some information I have compiled from my own experiences with fraudulent companies requesting my help with design work.

For more information and resources, please feel free to look through the links on the right. <3

How Checks work — why check scams are able to steal money:

“But it’s money they sent me.. so aren’t I just sending back their own money?” NOPE. Unfortunately, it’s a little more complicated than that. So if you’re thinking this - like I once did - then this section is for you.

Simply put: To provide quick use of the money, banks put the funds into the recipient’s account BEFORE a check is actually cleared. In other words, before anyone has actually confirmed that the check is real, the bank puts the money into the user’s account.

So what happens if the bank decides the check isn’t real? If the check is deemed fake, the money is TAKEN BACK OUT of the user’s account. In which case, you will have sent funds of your own rather than the payee’s money.

In other words, when you send money from a fake check, you are essentially sending temporary money—money that is only temporarily in your account. So if you send back the company’s money and the bank decides to take the money back from the check, then quite a bit of money will unfortunately be coming out of your funds… therefore, leaving you short of money you once had…

Signs of fraud:

When in contact with a prospective client or employer, check for these potential signs of fraudulent activity:

• Urgency

  • (i.e. “I need you to send the money back as soon as possible so I can get it to the other person we’re working with”)

• Asking for help because they could get into or are “in trouble”

  • (i.e. “please just help me out so I don’t get in trouble with my boss”)

• The prospective client provides you their budget without you having to ask them for it.

  • The reason for this is to get their victim excited for the job opportunity, because who wants to say no to money? Especially a potentially big payout!

• Broken language

  • (i.e. clear grammatical issues and/or spelling errors. Reads as if a translating program was used)

• They seem to avoid questions that you’ve ask.

• They have automated-sounding responses. Usually thanking you for stuff you haven’t even said yet.

  • (i.e. they reply “thank you for providing so much detail about what it will take to get this job done” …even though all you said in the last email was “okay great thanks!”).

• Odd Contradictions.

  • (i.e. they contradict themselves by telling you they’ll send you all the office supplies you’ll need for completing the job as well as a check to cover the costs necessary for buying all these office supplies… spoiler alert, they’ll be asking for the money back from the check they send…)

• Wrong amount of money. They send a check with an amount different from what you’ve agreed upon.

  • Typically it will be a higher amount than you agree on and the person will be requesting that you send back the difference.

• Demands that the check be deposited in person by a bank.

  • When you mention trying to deposit it online, they get weird and continue telling that it “has to be done in person.”

• They get really weird and hasty is you offer to rip up the check rather than continuing to try and deposit it.

  • A real person would already be suggesting you rip it up so they can just send you a new one. A real person would also NEVER ask for money back from the check because they creates extra work for everyone, including themselves.

• Requests you to send back the money from the check they sent.

• Look up their name, email address, physical address, etc.

  • Take note of any and all information they send you! Google the information to see if it’s real.

  • If the company name is real, contact that company through their website. Most likely the company will respond, telling you that the messages you’ve been receiving are not coming from them.

• Greatest of all. Listen to your gut. If you are excited about a new job opportunity, it’s natural to try justifying the signs. However, if you find yourself having to make constant justifications for weird occurrences with the client, then what you are seeing are red flags and I urge you to not ignore them. It will be tough, but it will be worth it.

  • If you need any support with this process, please feel free contact me and I will help you through it.

Components of a Check:

Real checks ALWAYS include ALL of the following information:

• Name of the sender’s bank

• Bank’s Logo

• Bank’s address

• Check number (at the top and bottom! - Make sure they match!)

• Bank Fractional Number

• Routing number

• Account Number

• Payer’s Name and Address

• “Pay to the Order of” with the name of the recipient (aka the payee)

• Amount Box - Amount written in numbers (i.e. “$200”)

• Amount Line - Amount written out in words (i.e. “two-hundred dollars”)

• Memo Line

• Signature line for payer to sign.

Fake checks will be missing certain crucial pieces of information. If a check is missing ANY of the above information, then it is NOT real.

If you still aren’t sure, look up the bank that is listed on the check and see if the information on the check matches the information on the bank’s website (such as the account number, routing number, address, and logo).

If able, try to electronically deposit the check through the bank’s downloadable app. If the software is unable to process the check, then it is most-likely fraudulent. The software used for depositing checks electronically are able to define a real vs fake check immediately, whereas a person may take a few days to a few weeks to be able to clear a check.

If you still really aren’t sure, it is always okay to ask a friend or family member for help! I know it’s exciting to try and do things on your own, but it is always okay to ask for help. We are all stronger as a community. If you do not have a community, please feel free to reach out to me and I will do my best to help. <3

Resources:

A quick, easy read:

• https://somervillebank.net/fake-check-scams-a-common-fraud/

Signs of Fraudulent Job Opportunities:

• https://consumer.ftc.gov/articles/how-spot-avoid-report-fake-check-scams

• https://dfi.wa.gov/financial-education/information/warning-signs-business-opportunity-fraud

• https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety

NEVER RETURN MONEY FROM A CHECK

Here’s why:

• https://www.nytimes.com/2023/03/10/your-money/check-fraud-protection.html

• https://www.fdic.gov/consumers/consumer/news/august2019.html

• https://www.ag.state.mn.us/consumer/publications/FakeCheckScam.asp

• https://www.nytimes.com/2023/03/10/your-money/check-fraud-protection.html

Real vs. Fake Checks:

• https://www.wikihow.com/Spot-a-Fake-Check

• https://commercetech.com/eblog/real-tips-to-spot-fake-checks/

Components of a (real) check:

• https://moneytamer.com/parts-of-a-check/

• https://reference.yourdictionary.com/resources/parts-of-a-check-made-simple.html

How to report fraudulent companies and/or checks:

• https://www.usa.gov/features/five-tips-for-reporting-a-scam#:~:text=If%20you've%20lost%20money,to%20help%20safeguard%20personal%20information.

• https://www.consumerresources.org/file-a-complaint/

If you’ve received a check through the mail:

• https://www.uspis.gov/report

Keep your evidence!

Screenshot all texts and/or emails and keep anything they’ve sent you through the mail! The authorities most likely won’t contact you, but if they do, it is important that you have all documentation on hand for them to examine for fraud.