Check Scams

It seems that every periodical or newspaper you pick up these days has some article about scams, so it makes sense to keep shining the light on them. Every time you read about these things, you say, “That will never happen to me.” But then that check arrives, telling you that you are a WINNER. And the amount is always enough to get your attention, like $50,000. And all you have to do to get the money is wire transfer the taxes or fees, a mere $5,000, and the rest is yours to keep.

Recently, local postal inspectors have been running some very valuable programs around town that inform, advise and warn all of us. We are a gullible sort, we Americans, and we always think the best of people. It is this attitude that makes us such easy targets. And it is not just the elderly that get preyed upon. It is every age group and every walk of life, from the uneducated to the highly educated professional.

Many of these scams originate overseas. A lot of them come through Canada, which might explain why we trust them. We get this real-looking check and we take it to the bank. We deposit it, and the check looks so good that even the bank teller cannot tell that it is a fake. Now you have this money in your account, or so you think. But then you write out the check for the taxes and fees, and $5,000 leaves your account. You think that you have a lot of money left. Then, all of a sudden, the fake check does not clear, and your account is charged back for $50,000. The check for the taxes and fees has cleared and needs to be covered by your own money. Now you are out $5,000.

Another way that the bad guys try to get you is to see something that you have advertised for sale. You may have posted a listing online or you might have advertised a set of patio furniture or some camping gear in the local paper for $300. The bad guy will call you up and offer to buy it, sight unseen. They will send you a check for too much, like $2,500. Then they will ask for you to give them a check (or cash) back for the difference. By the time you get to the bank to deposit their check, they will have stopped payment on the check they gave you, or you find out that the check has been drawn on a bogus account.

So how big a deal is this? According to recent studies, average losses are between $3,000 and $4,000. The annual cost to Americans is in the billions every year and growing. The losses have quadrupled since 2004, with no end in sight. For more information, go to www.fakecheck.org or call the toll-free number 1 (877) 876-2455. The Pennsylvania attorney general’s office takes great interest in matters of fraud, especially against the elderly, so don’t hesitate to contact them.

And don’t be embarrassed about reporting it. Many elderly folks will refuse to tell someone because they are afraid that their families will think that they cannot take care of themselves, or they are afraid they will have some of their rights or privileges taken away. Nothing could be further from the truth. It takes a lot of courage to report someone, and a lot of savvy to recognize that you have been victimized.

One of the difficult issues that we consumers are forced to deal with is the requirement that the bank must make your deposited funds available to you within a few days, even though the check itself has not cleared. The scammers use this quirk in the system to take advantage, and they are long gone with your money before the bank notifies you that their check did not clear.

So how do you protect yourself? Don’t take candy from strangers, or fake checks, either. If you are conducting a garage sale and someone approaches you with one of these check scams where they overpay you and ask for a refund, refuse the sale. Tell the buyer to go get cash to pay you, and chances are good you will never see him or her again. And when someone asks you to wire money to them, be on the alert. This is another way that they can beat the bank, and you, out of money. They get the refund immediately, but their check takes several days to bounce.

Believe it or not, some of these scams get their start on dating sites. The pursuer will woo some lonely person, send that person cards and gifts, and then ask the person to help them out of a problem. By then, the victim has an attachment, which the scammer preys upon. The scammer will send fake checks to the victim, and the bank wiring business starts and ends before the victim finds out they have been had. Obviously you cannot suspect everyone, but be on the alert, and seek legal counsel if you suspect that something is going on that does not feel right. Your intuition is usually on target.

Christopher M. Abernethy has been practicing law in Hampton Township since 1976. He focuses on elder law, which includes wills, trusts, powers of attorney, living wills, and probate matters. He also is proficient in all aspects of real estate law and business law. He is a member of the National Association of Elder Law Attorneys and the AARP Legal Services Network. He can be reached at 412-486-6624 or by email at cabernethy@aaylaw.com.