Top 5 Check Cashing Scams

Here are the top 5 check cashing scams. Check cashing scams were the most reported fraud in 2009. 42 percent of the complaints to the National Consumer League were about these scams.

  1. Advance fee scam is one of the top five check cashing scams. In this scam, a person is informed that they have won a contest but must cash the check then write one from their account to cover handling fees or taxes.

  2. Watch out for employment scams. A person will respond to an ad for a position then will receive instructions that they will be receiving checks and must deposit them in their account. After depositing the checks, they are to keep usually ten percent and send cash to the employer. The checks they deposited will turn out to be fake.

  3. Watch out for certain notifications about you winning a “gift”. The person is instructed that they must send cash or money order for shipping and handling to the company and in return they will receive their prize. The money is sent and the prize is never received,

  4. Working from home positions are another check cashing scam type. A person may be offered an opportunity to become a “mystery shopper”. They will receive a check to cover their first “job”. This check will turn out to be no good.

  5. Cashing a money order for someone who does not have a bank account. A person will give someone what looks like a money order and will then ask them to cash it for them. The money order will turn out to be a fake.

If you receive a check or employment offer that sounds too good to be true it probably is. Never cash a check from someone or a company you do not know.

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