In a cashier check scam, fraudsters send victims a fake check they need to deposit and are always ready with an excuse for why the recipient can’t keep all the money.
Cashier check scams prey on consumers’ trust and the perception of security associated with this form of payment. Unlike personal checks that rely on the account holder’s balance, a cashier check is issued and backed by a bank, guaranteeing the specified amount because the money has already been paid to the financial institution. This perceived security makes cashier checks extremely attractive auxiliaries for scammers.
In this article, we delve into the mechanics of cashier check scams, their variations, the warning signs, and how to protect against them.
As previously mentioned, cashier check scams exploit the bank’s guaranteed payment. Here’s a quick breakdown of how these scams typically occur:
Mystery Shopper Scams: In this scam, fraudsters contact victims with mystery shopper proposals. Once hired and given a first “assignment,” victims are given a phony cashier check. In the next phase of the scam, targets are instructed to deposit the check in their bank account, withdraw the amount and send the scammer a portion of the funds, either via wire transfer, money transfer services or gift cards.
Related: How to spot and protect against mystery shopper scams
Online Marketplace Scams: This scam involves fraudsters overpaying for goods and services via online marketplaces and auctions. The scammer “accidentally” sends victims a fraudulent cashier check for more than the item’s price and asks the recipient to quickly wire the excess funds.
Related: Don't Get Scammed! Facebook Marketplace scams you should avoid
Lottery Scams: Victims are notified via email, text or phone that they’ve won a foreign lottery. To receive the full amount, they need to pay a service fee or taxes. The scammers will attempt to “help” victims out by sending them a cashier check to cover taxes. The check needs to be deposited and the victim must wire the money back to the scammer.
Related: Beware of scammers posing as lottery winners on social media
Employment Scams: Job seekers are sent cashier checks as a sign-on bonus or for equipment purchases, then asked to send back a portion for "processing fees." In some cases, victims receiving the check are asked to forward the money to a stranger and are in fact laundering money for criminals.
Related: The Wolf in Recruiter's Clothing: Identifying Fake Jobs on Indeed
Property Rental Scams: Scammers contact property owners and say they will pay the first and last month’s rent alongside any security deposit via cashier check, without ever seeing the property. Once the landlord deposits the check, the renter offers a legitimate reason for why they cannot move in, and ask for the rent to be paid back.
You can share with Scamio the exact thing you want to check: a screenshot, PDF, QR code or link. Scamio lets you know in seconds if it’s a scam. Use it anywhere via web browser, Facebook Messenger, or WhatsApp. Scamio is localized for use in the USA, France, Germany, Spain, Italy, Romania, Australia and the UK.
How do cashier check scams work?
Cashier check scams typically involve a scammer sending a counterfeit check to the victim and asking them to deposit it and send back a portion of the funds. By the time the check is deemed fake, the victim has already sent real money, usually via an untraceable method such as a wire transfer.
What are the risks of accepting a cashier's check?
The main risk of accepting a cashier’s check is that the check could be counterfeit. If it is, you'll be responsible for the entire amount, including any money you may have sent to the scammer.
How do you know if someone is scamming you with a check?
Red flags include receiving a check from someone you don't know, especially if they overpay and ask for a refund. Other signs include pressure to act quickly or a request to return funds through wire transfers, gift cards, crypto or other untraceable methods.
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Alina is a history buff passionate about cybersecurity and anything sci-fi, advocating Bitdefender technologies and solutions. She spends most of her time between her two feline friends and traveling.
View all postsSeptember 06, 2024
September 02, 2024