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True Grit |
| Enthusiastic and determined, Carole Kai keeps jumping over hurdles to keep the aloha flowing for dozens of Hawaii charities. |
Tools for Life |
| From state-of-the-art scooters to emergency response systems, Assistive Technology Resource Centers of Hawaii (ATRC) connects the elderly and people with disabilities with the latest devices to improve their lives. |
DEPARTMENT:
Better Business Bureau Alert
Counterfeit Check Scams
Counterfeit check scams are defrauding consumers across the country. The most common type of scheme involves a cashier’s check, traditionally considered a trusted form of payment. Unfortunately, the advent of high-quality printers and scanners is making it easier for counterfeiters to produce official-looking checks of all types, including cashier’s checks.
There are a number of different scenarios. For example, consumers may be told that they have won an international lottery, but must pay a clearance fee or taxes out of their “winnings.” Or, after responding to a work-at-home advertisement, they may receive a counterfeit cashier’s check from the company. They may be instructed to deduct a certain amount from the check to pay for out-of-pocket expenses such as materials, taxes and transfer fees, then asked to wire the balance to the company to cover enrollment costs. Online sellers may accept checks for purchases made by unscrupulous “buyers” and send the merchandise, only to discover the checks are phony.
Victims may deposit the fake check in a bank account, and a few days later ask the financial institution if the money is “available.” The bank may make the funds available to customers even if the check has not yet cleared, and they may assume they can safely withdraw it.
That is not the case! Until the financial institution can confirm the funds have been “finally collected,” the consumer is responsible for any money they may withdraw against that check deposit. Collecting the funds can take a bank up to 14 business days for an out-of-state check or multiple months for an out-of-country check. In most cases, victims report that they wired money to the check issuer or a third party only to find that the deposited check was uncollectible.
The BBB and the American Bankers Association offer the following tips to help you evaluate checks you receive from individuals or businesses that you do not know.
• No legitimate company will offer to pay you by arranging to send you a check and asking you to wire some of the money back. If that's the pitch, it's a scam.
• Be suspicious if someone insists that you send funds by wire transfer right away or otherwise pressures you to act quickly before you know the payment you received is good.
• When you use the Internet to sell goods or services, consider other options of payment such as escrow services or online payment systems rather than a cashier’s check.
• If you do accept a cashier’s check for payment, insist on one that’s drawn on a local bank or a bank that has a local branch. Never accept a check for more than your selling price if you are expected to pay the excess to someone else.
• Independently verify that the check is drawn from an actual account at a legitimate financial institution. Do not rely on the telephone number listed on the check. Use directory assistance to get the telephone number of the financial institution or check the FDIC’s Institution Directory at www2.fdic.gov/idasp/index.asp to make sure the bank is legitimate.
• If you have questions about whether a transaction is valid, talk to a representative at your bank or credit union.
Those who have been victimized by a fake check drawn on a federally insured financial institution should call the Federal Deposit Insurance Corporation at (877) 275-3342. If the check is drawn on a foreign bank, contact the United States Secret Service at (202) 406-5572 or go to www.secretservice.gov.
BBB Hawaii is a private nonprofit organization that has served Hawaii since 1945. Call 536-6956 or toll free (877) 222-6551 from the neighbor islands for more information. You can request a free local business or charity reliability report online at www.hawaii.bbb.org