How To Avoid Check Cashing Scams

Learning how to avoid check cashing scams is very important. It seems that check cashing scams have become extremely popular within the last few years. You must be savvy and have attention to detail in order to avoid these types of scams. With the right frame of mind, you can avoid being scammed.

  1. Understand that fake checks come in multiple forms. Some people may believe that fake checks are only personal checks. This is a common misconception. Fake checks can come in the form of personal checks, money orders, cashiers checks, and even corporate checks. The checks may be printed with legitimate institution names and numbers, but are still forged. Remember that checks can now be printed on the internet easily.
  2. Verify checks before cashing them. To avoid check cashing scams it is highly important to verify any checks you may receive. By making a call to the bank that the check is under, you can find out useful information. You can verify the actual account number on the check, as well as, the name and if funds are really available.
  3. Don't cash checks from unknown persons or companies. Many check cashing scams occur through email or mail. It is critical to stay away from cashing checks from people you do not know. Some will claim that they need you to cash a check as a work opportunity. Think about it. Any legitimate company will have an account and be able to cash their own checks. Others will claim to make a purchase from you with a large check, and require you to send them the change back. Why would they just trust you to send their change back, unless they have nothing to lose. Cashing checks from unknown parties will almost always end up in disaster.
  4. Avoid cashing checks that require you to send money back. The most popular check cashing scams will require you to cash a check. You will then have to send money either through wire transfer or western union. Most of the time, you will be required to send this money to a name that doesn't appear on the check or anywhere else. Avoid this situation, by never sending money or change from a cashed check. You will then owe the money to your bank and that person will be on there way with your hard earned cash.

 

 

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