Counterfeit Check Schemes

How it Works:

A counterfeit or fraudulent cashier’s check or corporate check is utilized to pay for merchandise. Often these checks are made out for a substantially larger amount than the purchase price.

• The victims are instructed to deposit the check and return the overage amount, usually by wire transfer, to a foreign country.

• Because banks may release funds from a cashier's check before the check actually clears, the victim believes the check has cleared and wires the money as instructed.

One popular variation of this scam involves the purchase of automobiles listed for sale in various Internet classified advertisements.

• The sellers are contacted about purchasing the autos and shipping them to a foreign country.

• The buyer, or person acting on behalf of a buyer, then sends the seller a cashier's check for an amount several thousand dollars over the price of the vehicle.

• The seller is directed to deposit the check and wire the excess back to the buyer so they can pay the shipping charges.

• Once the money is sent, the buyer typically comes up with an excuse for canceling the purchase, and attempts to have the rest of the money returned.

Although the seller does not lose the vehicle, he is typically held responsible by his bank for depositing a counterfeit check.

Operation Cyber Sweep:

The Internet Fraud Complaint Center (IFCC), a partnership between NW3C and the FBI, in coordination with state and local law enforcement agencies, the U.S. Postal Inspection Service, the U.S. Secret Service, the Federal Trade Commission, and the U.S. Dept. of Justice offer details on a national take down effort highlighting recent Internet crime investigations stemming from IFCC referrals.