(BBB Cleveland)
Fake check scams are skyrocketing. According to the Federal Trade Commission (FTC), in 2021 they received 39,113 reports of fake checks or foreign money offers with losses of over $78.1 million overall. This is a dramatic increase from reported losses of $47.4 million from the same scams in 2020. Fake check scams typically target consumers, but businesses can also become victims.
Recently, a local home repair business contacted Better Business Bureau (BBB®) of Greater Cleveland about a fake check scam. Norm Dillen, the owner of a Mentor-based and BBB Accredited Business, Choice Home Repair, described how a scammer solicited his company through a text message. The owner received a text in early September from the scammer who introduced himself as a man from Colorado named Howard Kirk. Kirk claimed he found Choice Home Repair through BBB’s website. Kirk then stated he desired to paint the interior walls of his newly purchased home on Engle Rd in Brook Park. After corresponding through further text messages, phone calls, and emails, Kirk sent Choice Home Repair a cashier's check. Although the painting project was only estimated at $4,783.00, the cashier's check was written for $9891.50 and came with instructions to put half down on the project and then pay the previous homeowner $7,500 when Choice Home Repair obtained entry keys. The owner of Choice Home Repair immediately became suspicious and contacted BBB and local police. BBB was able to verify through the Cuyahoga County Auditor’s office that the reported owner of the newly purchased home did not match the scammer’s name.
To prevent becoming a victim of check fraud, BBB warns consumers and businesses alike to be wary of situations where a third party is trying to obtain immediate payment from cashed funds or is overpaying by check and requiring quick reimbursement. By law, banks must make funds available for deposited checks in a reasonable amount of time, but the bank will also recover money from the account holder when a check is discovered to be counterfeit. In short, a check casher will lose any money they spent, or sent back to the scammer, once a check bounces.
Visit BBB.org to read a 2018 BBB study on Fake Check Scams. Visit BBB.org to read more about mystery shopping and employment scams. Consumers can also report suspected scams to BBB.org/ScamTracker. These reports help others avoid falling victim to scams. Consumers can visit the Scam Tracker website to view the latest reported scams in their neighborhood or across North America.
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