Consumer Alert: Don't Be Fooled

Phony check fraud is surging. Here's how to spot this scam.

By Ed Shanahan

From Reader's Digest

Illustrated by the Heads of State

This new scam is ripping off consumers and causing serious concern.

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Illustrated by the Heads of State

This new scam is ripping off consumers and causing serious concern.

We are highly concerned about reports of scam artists using our name and good reputation to try and deceive consumers through these fake check scams

New Scam That Rips Off Consumers

What do Alcoa, Welch's and Bank of America have in common? They all have had their corporate identities stolen and placed on fake checks in a new scam that rips off consumers.

The average victim of this type of con -- in which people trade their own cash for a counterfeit check -- loses from $3,000 to $4,000, according to the National Consumers League (NCL). And consumers aren't the only ones who suffer. The reputations of legitimate corporations whose names are being hijacked are also tarnished. Our own company, Reader's Digest, has fallen victim to these thieves, as have other well-known firms.

"We are highly concerned about reports of scam artists using our name and good reputation to try and deceive consumers through these fake check scams," says Chris Irving, a senior executive with Publishers Clearing House. "If you have received what appears to be a legitimate check with a request to send a portion of that check back, stop immediately."

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• How to Spot a Scam
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• Get Rich? Get Real
• Americans are falling for get-rich-quick pitches.
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• Federal Trade Commision: Consumer Protection
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• National Consumers League's Internet Fraud Watch
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