The danger of fake cashier cheques
The Attorney General of Texas recently released a warning about fake cashier cheques, which reads in part,
As you know, perpetrators of advance fee frauds and similar sweepstakes schemes attempt to trick the victim into thinking a sweepstakes or lottery prize has been sent to them by wiring a phony cashier's check. Finding that consumers have caught on to the counterfeit check scam, scammers are now using phony U.S. Postal money orders instead of cashier's checks.
Many consumers are wise not to pay until they see the money that has been promised to them, but the phony U.S. Postal money order disarms this precaution. They have in their hand what appears to be a very sound financial instrument. They believe the money order is valid. The victim then lets down his or her guard, believing that the scammer has actually sent the money, and sends funds to the crook for the fees or taxes associated with their "winnings" only to find out later that the money order was bad.
In another variation, we have heard from people who call us after trying to sell a big-ticket item such as a car or boat. Most often, the item was listed online, but in some cases it was listed in the newspaper or a specialty magazine. The consumer is contacted by a buyer who agrees to pay the asking price, but offers to pay with a cashier's check or U.S. Postal money order made out for an amount that is considerably higher than the agreed amount of the sale. Buyers offer various stories to explain why the check or money order is so large, such as saying that an earlier deal for a similar item for which the large money order was issued has since fallen through. The scam artist then asks the consumer to wire back the difference. The victim deposits the check or money order in a personal bank account, withdraws the cash, often relying upon part of the amount credited by the bank upon deposit of the bogus money order, and wires it to the buyer. The seller is then notified by the bank days later that he or she has passed a counterfeit check or money order and is liable for the overage.
The reason these ploys work so well is that most people place great confidence in cashier's checks and money orders. Cashier's checks and money orders are generally considered much safer than personal checks, since they are issued by financial institutions that have already verified the existence of sufficient funds.
These counterfeits are so good sometimes that even bank tellers have been fooled. Frequently, the consumer has taken the precaution of asking the bank teller to verify that the cashier's check or U.S. Postal money order is valid, and in some cases, the cashier's check even appears to be drawn on the very bank that is being asked to cash it.
Banks and other financial institutions generally will not absorb the loss if consumers fall victim to this scam. In some cases, victims have even faced criminal charges for inadvertently cashing these counterfeit checks or money orders". (my emphasis)
Here is a tip from the US Postal Service on how to identify real US Postal Orders, which appears to be very hard to duplicate or counterfeit -contrary to the assertion of the AG from Texas. I wonder who is correct?
But is the AG correct in identifying the reason why this scam or fraud works so well, ie misplaced confidence? (There is currently a warning about stolen cashier cheques from Great Western Bank, Omaha, Nebraska.)
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Clearly, that is part of the story. But, there is more to the scam than this. If you were totally immune to larceny, getting something for nothing, this scam would not work. For example, here is an interesting discussion from someone who thought they were a little smarter than the crooks - she cashed the entire amount and spent it and is now being charged with fraud. This woman really wanted something for nothing.
On a happier front, a resident of Pittsburgh who received a cashier's cheque in the mail, plus a notification that he had won $100,000, then did the right thing and asked his bank to verify the cheque - which was a forgery. Had he thought he could get something for nothing, since he knew that he didn't enter into this lottery, he would found that he was paying for the privilege.
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