By Becky Strayer, Branch Manager, New Carlisle Federal

Did you get a check in the mail from someone you don’t know?  Is this finally your lucky break?  Unfortunately, we see this scenario all too often.  Customers bring in checks from people they do not know and attempt to cash them.  What you may not know is if that check is fraudulent you are responsible for it.  Here are some common questions to ask yourself before cashing the check: 

How do the scammers find victims?  Someone will offer to buy something you have advertised for sale, pay you to work at home, give you an “advance” on a sweepstakes that you’ve won, or give you the first installment on the hundreds of thousands you’ll receive for helping them.  Then they will ask you to deposit the check into your account or ask for your account information so they can transfer money to your bank account for safekeeping.

The scammers will claim that they are either out of the country or out of state and they need your help to transfer the money.  Sometimes they will ask you to wire a portion of the check you just deposited somewhere else and you get to keep the rest for “helping” them.  Only after you have already transferred the money will you find out that the check is fraudulent, leaving you responsible to repay the bank back.

Can the bank tell if the check is fake? Generally, the checks look completely real.  Scammers either use all fake information to create their own checks, or they steal information from legitimate companies without their knowledge. 

Federal law states that banks must make the funds available quickly.  However, even though the money has been made available for you to spend, the bank might not receive notification the check is fraudulent for several days. 

If the check or money order is fraudulent, who is responsible for that money?  The customer is responsible for any money lost in this transaction.  As the account owner, you are responsible for knowing who you are conducting business with.  If you don’t have money in any other accounts and are unable to pay it back, law enforcement could become involved.  The bank then has the right to sue you to recover its loss. 

How do I protect myself?  There is absolutely NO valid reason for someone to send you a check and then ask you to send part of those funds back, either by wire transfer or check.

If you think that you are being scammed, bring the check to New Carlisle Federal along with any mail that came with it.  If the bank is still unsure of the quality of the check, they can send it for collection before you receive the money.  For additional safety tips you can also check our website at www.newcarlislefederal.com; click on “Resources” then “Education Corner”