In this economy, people are searching for any way to get an extra buck. Those who have been laid off, or are facing mortgage delinquency or home foreclosure, may be the most desperate, ready for any solution to their financial issues that presents itself. Others, even if they have kept their jobs and homes, are still finding that they cannot afford to live quite they way they did before the recession. As a result of this widespread financial desperation, monetary scams are becoming more and more common.
One of the biggest scams out there today is the fake check. According to the Los Angeles Times, approximately one-third of Americans have been approached by this type of scam, usually through the mail. These scams usually appear extremely official and are easy to mistake for real checks. The checks or money orders look as real as possible, and the scam seems like a good idea at first.
The checks, which have taken in about 1.3 million Americans, are said to be the results of a lottery, sweep-stakes, stay-at-home work, or grants. Once you deposit the check, you are instructed to wire some money immediately, to pay for taxes, fees, middle-men, or other third parties. The check inevitably bounces, and you are left having to pay the failed wire transfers out of your own account.
The average check scam victim ends up losing between $3,000 and $4,000, as most people do not realize that just because a check clears does not mean the check has been deemed legitimate. Checks clear when the funds are available, not because the bank has confirmed the check is not a fake. Also, most people tend to think the money coming in and the money going out are connected—if the check bounces, they will not be responsible for paying the fees. Sadly, this is not true. Depositing the check and paying the fees are separate actions within your account, and you are still responsible for paying your debits. To your bank, it is the same as if your paycheck bounced, and thus you had to re-pay your car insurance.
Another scam that has become all too common in this economy is the mortgage scam. This type of scam preys upon those who have fallen victim to the mortgage crisis, and usually appears in the mail as an official-looking government form claiming to be able to save your mortgage. According to MSNBC, these scammers claim to be “foreclosure rescue” companies, but can actually end up costing victims a good deal of money, or even in the worst cases, their homes.
The bottom line is to not let your financial worries cloud your judgment. Be wary of any scam promising to end your worries or of offers that involve money at all. No actual sweepstakes or lottery will ask you to pay fees and taxes up front, and you should always be wary of anyone asking you to wire money through MoneyGram or WesternUnion. If you think you are being scammed, call the police. They will be happy to asses your situation and let you know if the offer is legitimate. You need to protect yourself from those looking for prey in need.