FDIC fraud investigators are reporting that false cashier’s checks are becoming easier to reproduce and are being used at a rapidly increasing rate. This is important because, if you accept a fraudulent check for services or goods, you will likely suffer the monetary consequences.

Some common frauds that incorporate the use of counterfeit checks:

• An online buyer creates a fake cashier’s check and sends the fake cashier’s check as payment to the victim.
• A buyer sends a fake cashier’s check for more than the amount billed, and asks the seller (victim) to wire the excess funds back to the buyer.
• The victim receives a letter and a fake check saying he/she has won money, and is asked to pay a transfer tax for the prize.
• The victim receives a letter to act as a mystery shopper, which includes a fake check. The victim is instructed to keep part of the check for payment and to transfer a portion to a third party.

How to protect yourself from these and other scams

• Review checks carefully. Does the check look reprinted or altered? Are there misspelled words?
• Find out if the check is genuine by contacting the bank on which the check is written. Do not contact the telephone number that is printed on the check; instead go to www2.fdic.gov/idasp to locate accurate contact information.
• Be suspicious of anyone insisting that you send funds via wire transfer, or pressuring you into acting quickly.
• Save all paperwork regarding the transaction. You may need it if something goes wrong.

Remember, if something sounds too good to be true, it probably is. If you have been the victim of a cashier’s check scam, contact the issuing bank directly. In addition to contacting the bank, notify the Federal Trade Commission at 1-877-FTC-HELP or ftc.gov.

At American Savings Bank we work hard to keep our customers safe from scams, fraud and theft. To learn more about protecting yourself against financial predators, click on the Security section located at the bottom of our Web site at asbhawaii.com.