Fake Checks That Make You Pay

Just because you might have access to the funds deposited via a check does not mean the check is “good.” Although federal regulations require financial institutions to make funds from a deposit available generally within one to five business days, it can take weeks before a bank discovers that a deposited check is worthless. The National Consumers League recently reported that fake-check scams are rising alarmingly. In 2006, counterfeit-check scams shot to the top of the league’s telemarketing fraud list and ranked third among Internet-based scams.

If you want to avoid being a victim of a fake-check scam, follow this one piece of advice from Grant: Don’t ever accept a check if part of the deal involves you sending or wiring back some of the money.