Counterfeit Checks

Although cyber crime is a hot topic in the media today, the more traditional "paper-initiated" types of fraud are still a formidable threat. One of the most common threats is the use of counterfeit checks and counterfeit cashier's or official checks. We've listed a few typical scams and schemes along with some suggestions on how you can reduce the likelihood of becoming a victim.

Common Schemes Against Individuals

You might be contacted by email, fax or letter by an individual in another country asking your assistance in negotiating a cashier's check. As compensation for your assistance, you will get to keep a small percentage of the check's value. You are asked to deposit the check into your bank account and return 90% of the funds to them in the form of a new cashier's check. Unfortunately, within a few weeks your account would be charged for negotiating a counterfeit item, and you've lost the funds you returned to the sender. In addition, your status with the bank and your credit rating could be severely jeopardized.

Another common scam might occur if you were trying to sell a large item over the internet, such as a car or boat. You would receive a cashier's check in the mail that exceeds the asking price of the item from an interested "buyer". The "buyer" would contact you and explain the check was made out in error and ask you to return the difference between the check amount and the sales price in the form of a cashier's check. Within weeks you would learn the check you received was fraudulent, and you're out the difference that you delivered to the "buyer".

How to Protect Yourself

Be leery of transactions with individuals whom you do not know that come to you in an unsolicited manner
Be suspicious of emails or any solicitation from outside the U.S.
Call the bank that issued the cashier's check, using a number provided by directory assistance. Do not call the number on the check as that typically connects you to the criminal.
Be on your guard with any deal that sounds too good to be true.

Common Schemes Against Businesses

Businesses also need to be vigilant in reviewing transactions on their accounts. Many criminals can use a legitimate check to create a counterfeit check and pass it along for payment. A business owner may find these items have cleared his or her bank account causing an overdraft; the business owner who does not conduct timely bank statement reviews might find these items have been debiting his or her account after it is too late to dispute the occurrences.

Ways to protect yourself and your business

To prevent this from occurring to your business, it is important to review your accounts regularly and report any discrepancies to your bank immediately. The best and most efficient way to accomplish is through the use of internet banking services or positive pay services. At Arizona/Arizona Business Bank, these products are mainstays for many of our business customers because they provide peace of mind and take only a few minutes a day to ensure your accounts are safe.

If you have any questions regarding these schemes or are concerned that you have been a victim of fraud, please contact your banker at Arizona Business Bank.