Consumer Advisory I

Tips for Avoiding Cashier’s Check Fraud

 

What steps should you take to protect yourself from becoming a victim of fraudulent cashier’s check scams? Keep the following tips in mind.


- Try to know the people with whom you do business. When possible, verify information about the buyer from an independent third party such as a telephone directory. Be cautious about accepting checks – even a cashier’s check – from people that you do not know, especially since it may be difficult to pursue a remedy if the transaction goes wrong.

- When you use the Internet to sell goods or services, consider other options such as escrow services or online payment systems rather than payment by a cashier’s check.

- If you do accept a cashier’s check for payment, never accept a check for more than your selling price if you are expected to pay the excess to someone else. Ask yourself why the buyer would be willing to trust you, who may be a perfect stranger, with funds that properly belong to a third party.

- A cashier’s check is less risky than other types of checks only if the item is genuine. If you can, ask for a cashier’s check drawn on a bank with a branch in your area.

- If you want to find out whether a check is genuine, call or visit the bank on which the check is written. That bank will be in a better position to tell you whether the check is one they issued and is genuine.

- Know the difference between funds being available for withdrawal from your account and a check having finally cleared. Your bank may be required by law to make funds available to you even if the check has not yet cleared. However, it could take several weeks to know if the check will clear or not. Act with Caution

- Be wary of taking action before you can be sure that the payment you received is good.

- Be suspicious if someone insists that you send funds by wire transfer or otherwise pressures you to act quickly before you know the payment you received is good.

- If you receive a letter offering you a large sum of money for little effort other than sending a “processing” fee, remember: if something sounds too good to be true, it probably is.

- Reject any offer that asks you to pay for a “prize” or “gift.”

- Save your documents – you may need this paperwork if something goes wrong.


If you have become victimized by a fraudulent check scam, please follow these guidelines:

- Anytime a scam involves a cashier’s check, official check, or money order from a bank, and you believe that it could be counterfeit, you should contact the issuing bank directly to report receipt of the check and to verify authenticity. When contacting the bank, do not use the telephone number provided on the instrument, as this number is probably not associated with the bank, but rather with the scam artist.

- To locate a bank’s mailing address, you can check the FDIC’s Web site at: www2.fdic.gov


In addition to contacting the appropriate banks, there are others whom you also should notify if you receive a counterfeit item. They include:

- Scams, generally–Federal Trade Commission (FTC):by telephone at 1-877-FTC-HELP or file an electronic complaint via their Internet site at www.ftc.gov

- Internet-based scams–Federal Bureau of Investigation (FBI) Internet Fraud Complaint Center :www.ic3.gov

- Mail-based scams–U.S. Postal Inspector Service:by telephone at 1-888-877-7644 , by mail at U.S. Postal Inspection Service, Office of Inspector General, Operations Support Group, 222 S. Riverside Plaza, Suite 1250, Chicago, IL60606-6100 or via e-mail at www.usps.com

Finally, if you have a complaint or problem involving a check written on, or deposited in an account at, a national bank, and you cannot resolve the problem with the bank, contact the Office of the Comptroller of the Currency’s Customer Assistance Group by calling 800-613-6743 or by sending an e-mail to: customer.assistance@occ.treas.gov

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