Avoid check scams, says BBB

Add comment January 5th, 2008

The Better Business Bureau has released its top-10 scam list for 2007 — and check scams have overtaken advance fee lenders as the number-one scam reported to the bureau.

Here’s how those check scams work: You get a check in the mail, supposedly for winning a sweepstakes, lottery or promotion. This official-looking letter may have a “final notification” stamp to make it look urgent.  In the letter you are told you are a major winner of either a large prize or a lot of money, and the enclosed check allegedly is meant to cover related taxes and fees.

You’re then instructed to deposit that check into your personal account and wire transfer a certain amount of money to a third party — the scammer — to cover those alleged fees. Unfortunately, the check in these cases is a fake, said Dennis Horton, director of the Better Business Bureau’s regional office in Rockford, so it does not cover the money transferred to the scammer.  Instead, the money comes directly from your account — and if that leaves you overdrawn, it will be up to you to make restitution to your bank. 

If you have any questions or concerns about an offer or prize opportunity, you should contact your local Better Business Bureau for a reliability report before ever becoming involved.  You can call the bureau’s local office at 815-963-2226.

More on other top-10 scams later.