From New Scam That Rips Off Consumers
Get the facts on fake check fraud at FakeChecks.org
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."
Too Good to Be TrueThere are several versions of the scam, which is spreading, probably because technology allows hustlers to create convincing counterfeits.
In one scenario, a potential victim gets an unexpected check from what looks to be a trusted source. The check is labeled as an award, prize, lottery or other windfall.
The "lucky winner" is instructed to deposit the check into a personal account and then wire back a portion of the funds to cover fees, taxes or other charges.
Inevitably, once the money is sent, the bank discovers that the check is a fake. By law, the person who deposited it must repay the funds.
In another version, a person selling an item on eBay or via an online classified ad is contacted by a potential buyer who offers to pay by check. The catch: This person insists on sending a check for more than the purchase price and wants the extra amount wired back. The seller who agrees to this deal later learns the check is no good.
In yet another version, scammers recruit so-called secret shoppers. Each is sent a check and instructed to cash it and wire most of it back to the sender. They're also told to keep a portion as payment for rating the performance of the person who handles the transaction. The check, of course, proves to be bogus.
Fake corporate checks are so real-looking, they fool even bank tellers. Counterfeit cashier's checks are also popular with these con artists, who are savvy about bank rules. In many cases, the amount of a cashier's check must be posted to a depositor's account by the next business day, before anyone is likely to verify its legitimacy.
Such swindles are on the rise: The NCL says that from 2005 to 2006, fake check cons shot from fifth place to first on its list of the most common telemarketing scams. Adds Steve Baker, director of the FTC's Midwest region: "We became aware of these schemes about three or four years ago, and lately, the incidence is really going up."
How to protect yourself
Discard offers from sources that ask you to pay fees, taxes or other charges to claim a prize. No legitimate company would do that.
If selling something, never accept more than the sale price.
If accepting payment by check, ask for one drawn on a local bank or on a bank with a local branch. That lets you personally verify the check's validity.
And remember, if something seems too good to be true, most likely it is.
There are fake checks circling u.s. mailboxes, my judgment is always right. My husband received a check for $3.723.00. Luckily I was smart enough not to bother I was instructed to call Mr. Murphy at 1-647-864-5216 he just kept on saying take the check to your bank. Guess he thought he had an idiot .
Well I am the latest. I know a SCAM when I see it! I am also happy to see this website. My letter was from Readers Digest Inc. 3647 Ash St., Palo, Alto, CA 94306 with at ph# of 647-219-3789. The letter was a final notice and states Readers Digest has been contacted by Publisher Clearing House to track down winners. I was to call a Mr. Murphy Will 1 at 647-994-3068. The check was for $3628 and I was to send $2996.10 via Western Union, and I keep $631.90 ( how gracious) sign by Vernon Kimberly.
My mother came home today all excited about winning $125,000 from a Readers Digest Sweepstakes. We then realized the letter came from "Mental Health Center" somewhere in Canada. They sent a check for $3,753 dollars and wanted us to send back $2,999.97 to cover taxes for our "grand prize." Luckily I did a little research and found this to be a hoax.
I, too, just today (10/30/9) received a 'Reader's Digest, Inc.,' check for $3,723.00 from a 'Publisher's Clearing House and Compensation Draw Sweepstakes' drawn on G & H Services', Inc., account in Mt. Pleasant, TN, and from Ridgeway Savings Bank of Ridgeway, NY. The telephone # (647-864-5105) says San Francisco, but the 647 Area Code is Ontario, Canada. The male who answers sounds to be from India. Ridgeway Bank says its a forgery. Oregon AG says its a scam and to "frame" it. Good luck!!!
I just receive a check for $3,500.00 from a insurance company telling me that I just won $255, 695.69. But I could not tell anyone until I called them at a number list on the letter. The number was to be in TX, but after looking up the area code it was for a phone in Canada. I was told the check was to cover my expenses before I received my big check. The insurance company had no idea when I called them. They also told me that they had no bank in PA where the check came from.
I recieved a check for $5,655 dated 10-23-2009 from Spikes Hydraulics drawn on Key Bank both of Shelton, WA indicating it was to cover outstanding fees not covered by Pepsi Co (c) directly. Supposedly I won Grand Prize in the Pepsi COla (c) One million Dollar Giveaway in sponsorship with Readers Digest.
I recieved a check from Greater Texas Electric Inc.d & woodforest National Bank , both of Houston Tx indicating it was for $5,655 to cover outstanding fees not covered by Pepsi Co (c) directly. Supposedly I won Grand Prize in the Pepsi COla (c) One million Dollar Giveaway in sponsorship with Readers Digest. Check dated 10-23-2009
I recieved a check from Porter Sand & Gravel on the Wilmington Trust co., both of Harringon DE, indicating it was for $5,833 to cover outstanding fees not covered by Pepsi Co (c) directly. Supposedly I won Grand Prize in the Pepsi COla (c) One million Dollar Giveaway in sponsorship with Readers Digest. Check dated 10-15-2009
I received a letter and check for $2,980.55 drawn on M.A. Bongivanni, Inc. The letter stated I won $57,000.00 in a sweepstakes all I had to do was deposit the check and after 24 hours I should call to find out where I should send the money for taxes. I would receive the $57K in 3 days. Of course it was to good to be true! I googled Bongiovanni scams and got here. Its a shame that Boniovanni's name is involved in the stolen check scam! Don't get involved.
I recieved a letter dated september 25th, 2009 that I had won a sweepstakes with the amount totalling 425 thousand dollars and some change. I have a very real looking check with the total amount being 3682.10. The man I spoke with had a heavy accent and when he put me on "hold" it was like he muffled the speaker and sounded like he had just woke up (being this was at 10:30am). Im so glad for my own skeptical tendancies! The check was never deposited.
I was sent a very offical looking letter from Readers Digest saying I won a prize in the SWEEPSTAKES DRAW dated sep.25 2009 with a check for 3682.10. I called the number given on the check the man did sound like he was talking in a closet. I called readers digest they asked what the address was on the letter the signature name and the reference number they said none of it matched up. I cancelled the check the check was from AIG a very known insurance company. BEWARE
Just recvd a check from M.A. Bongiovanni, Inc. asking for the check to be as payment for a secret shopper. Western Union scam as you send most of the money back. I looked up the company and it is a general contractor in New York! I think they stole the company name as well. Also postage from Canada with a New York address.
I actually just received the letter from Reader's Digest, INC and as I looked into the check I noticed there was no "void date". All checks issued will have a "void after xxx days". That was clue number 1, second clue was the fact I'm suppose to deposit this $3628 check and western union $3339 for "govt service tax and insurance". Third clue, the address on the letter says San Francisco CA but the envelope was postmarked from Canada.. Yes I trashed it quickly and searched for scams to report.
I wrote the last comment about the letter from MULTI-STATE FINANCIAL GROUPS AND CONSULTANTS. The check for $3,330.60 was from M.A. Bongioganni, Inc. General Contractors 1400 Jamesville Avenue P.O. Box 147 Colvin Station Syracuse, New York 13205. as I mentioned before this is supposedly a Financial Consultant firm why would they be sending me a check from a General Contractor. Times maybe hard with youright now but please keep your wits open. DO NOT SEND MONEY OR GIVE OUT YOUR PERSONALS INFO.
Rec'd a letter from MULTI-STATE FINAMCIAL GROUPS AND CONSULTANTS informing me I've unclaimed prize money of $97,840.00 US. My name was selected through a computerized ballot system drawn from Readers Digest, PCH Online Sweepstakes and Internet Games etc. Then there is a check for $3,330.60 drawn on Key Bank of New York which covers the administrative taxes and clearance fees.To authorize and activate the check call agent PETER LEE immed at 1 514 561 7036.THIS IS A SCAM DONT RESPOND REPORT IT.
I received this in the mail as well. When I called to ask about it, he started to ask for personal information. I quickly cut him off & said I would call him back & he hung up. I "won" $152K from Terrence Brown at 778-858-6473
I also received one from Phil Rizutto.It reads that its from Reader Digest /Pepsi
I Received a check last week also, stating that i had won 5,599.00 and to call a mr. phil Rizutto i think this is a scam and should be reported to the police.
Received letter in mail from Reader's Digest requesting my SS#, bank account number, etc., so they can sent me a payment. I've never entered a Reader's Digest contest, so I believe it is a fraud wanting my personal info. You can be sure this will go in the trash can!! By bj on 8-15-2009
My mother fell prey to a scam by someone using the Reader's Digest name. They told her she had won anywhere from $100,000 to $250,000. They had given her a fixed date when they would in person deliver it, told not to tell anyone, and that she would have to pay Arizona taxes on the money first. They milked her for $20,000. The Sheriff's department told her that they thought it was an International scam. It's just heart breaking to see the elderly being targeted, abused and so vulnerable.