Grundy Bank provides tips to protect against check fraud

Grundy Bank issued a news release Tuesday offering advice on how to prevent check fraud as classified ads, work from home job offers, sweepstakes and online auction sites continue gaining popularity.

According to the news release, the common thread is a stranger proposing to send the victim a check and have the victim wire money in return. The stranger may be someone offering to buy something advertised for sale, pay a person to work at home, or provide an advance on a sweepstakes win.

“Regardless of how the contact is initiated, the bottom line is this: if someone you don’t know wants to pay you by check but wants you to wire money back, it’s a scam,” said Kevin Olson, President & CEO of Grundy Bank.

Technology lets fraudsters make fake checks that look real enough to fool experts, and federal law mandates that bank must make deposited funds available quickly. A custmer could withdraw money on a fake check, even if it’s a cashier’s check or money order. Those could also be forged.

To avoid becoming a victim, remember there is no reason a person giving another money should ask them to wire money back. If uncertain about whether or not a check is good, wait until the check has cleared to spend the money. If a stranger wants to pay for something, insist on a cashier’s check for the exact amount, preferably one from a local bank.

For more details on how fake check scams work and how to avoid them, visit www.fakechecks.org.