Another very common scam is the Fake Cheque Scam. This one occurs most often when selling something online, such as on Facebook Marketplace, Craigslist, or Kijiji. This can happen when you are selling or when you are buying. It can also happen with Job offers, Lottery Scams, and Online Shopping scams.
How The Scam Works
The scammer sends or gives you a cheque for more than agreed upon. You tell them of the error. You usually agree to send the difference back to them in a wire transfer, e-transfer, or give them cash. You then settle the difference and deposit the cheque. A few days later, when their cheque should have cleared, you are notified that it bounced. You are out of the original money now, as well as the money you transferred to them.
Another variation is that they ask you to send the difference to another party as a favour. This could be a condition of Job acceptance or a processing fee for winning a lottery. There are many variations of this.
This damages your reputation at the bank. In some areas of North America, it can lead to the closure of your account. It also hurts your pocketbook.
These scams are really popular because they are easy to do. It is really hard to get your money back or find out who exploited you. The main goal for them is the overage payback, that you send via wire transfer, money order or e-transfer. E-Transfers can be tracked to some degree. According to Coast Capital Savings, “once an e-transfer has been deposited and the funds have been removed from the recipient’s account, there’s a smaller chance of recovering the funds”. Money orders and wire transfers are not traceable, and once cashed, the funds are not recoverable.
How To Protect Yourself
- Do not accept an overpayment of any nature.
- If you get instructions to forward any funds this is a red flag.
- If you get a cheque for the right amount, check it carefully to make sure it is legitimate. You can have a bank verify the cheque for you before depositing it.
- Use your inner gut feelings to decide if it is safe to accept a cheque from the person offering it.
- Always be cautious taking cheques from people you don’t know.
- Ask for an e-transfer or cash instead of a cheque. Cheques are not a common payment method these days, and there are safer ways to accept payment.