Consequences of Check Scams, and How to Avoid Them
What Are Check Scams? Check scams are a persuasive form of sweepstakes scam which can land the unwary victim into serious trouble, both legally and financially. Check scams usually work like this: a victim receives a check in the mail along with congratulations on winning a large prize. The check is only a portion of the prize, to cover “taxes” or “service fees” or something similar. The victim is instructed to deposit the check and to call a number on the letter for further instructions. Those instructions will include directions to wire the money back to the so-called sweepstakes sponsors. Once the money has been wired, the victim discovers that the check is fraudulent. He or she is responsible for the amount of the fraudulent check, as well as the money wired to the scammers. Click to see an example check scam letter. For tips on how to recognize and avoid check scams, I contacted Maleka Ali, Risk Manage
