Scam Alerts

If It Sounds Too Good to Be True, It Probably Is

Today's technology allows us more ways than ever to take care of business, communicate and stay connected. Along with these great advancements comes increased security, which in turn creates more sophisticated scam artists! First Northern Bank believes it is more important than ever for you, the consumer, to be aware of potential risks that may affect you.

According to the Yolo County DA's Office, there are 3.6 million seniors living in California—more than in any other state. "And the crooks are working overtime trying to find new ways of stealing your money," said David Edwards, Yolo County Enforcement Officer.

There is no shortage of check fraud these days. The method is almost always the same: a letter arrives in the mail with a sizable check, cashier's check, or money order enclosed.

"The reason for the letter ranges from an inheritance, a Mystery Shopper job, rental property, sweepstakes lottery, or the purchase of an item you're selling or auctioning. But the scam remains the same: an overpayment is involved, and the letter always asks that funds be sent somewhere else using a wire transfer, Western Union, or MoneyGram services," Edwards explained.

When customers wire money out of their account, they are sending it directly from their bank account to a scammer's account. Once the check is confirmed to be a counterfeit, the deposit is removed from their account, but the money that they wired to the scammer's account is gone, gone, gone. "So if you receive a letter along with an enclosed check, throw the letter into the nearest trash can. It's not your lucky day. It's check fraud," he said.

Lottery Scams Are So Last Year

Mystery shopper scams are on the rise

In this down economy, it's understandably tough for people to toss out a $3,000 check that looks very real. So if you can't bear to throw it away, take the check to your nearest bank. "The bank will be more than happy to verify the authenticity of any suspicious check that a customer receives before they wire any funds," explains Karen Walker, Vice President/Operations Administrator. "Customers should be sure to bring everything, including the envelope that the offer came in."

Five Ways to Spot Fraudulent Check Schemes

It's better to be safe than sorry. If you receive a check out of the blue that's worth thousands of dollars, be suspicious. Look for these red flags.

  • The enclosed check is an overpayment and the extra money must be wired somewhere.
  • The return address is from Canada or abroad; Nigeria is commonly used. (A foreign address is very common for lottery scams; not as common for mystery shopper scams.)
  • The business name on the enclosed check does not match the business name on the accompanying letter. Even the signatures do not always match the typed name below the signature line.
  • There's a sense of urgency in the letter, such as, "If we do not hear from you in seven days, this offer will expire."
  • The letter warns about keeping the matter confidential.

When in doubt, take the letter and check to the nearest bank and ask them to verify the funds for you before wiring any money anywhere. Or contact Dave Edwards in the Yolo County District Attorney's Office at (530) 666-8416.

Email Claiming to Be From the FDIC—October 26, 2009

The Federal Deposit Insurance Corporation (FDIC) has received numerous reports of a fraudulent email that has the appearance of being sent from the FDIC.

The subject line of the email states: "Check your Bank Deposit Insurance Coverage." The email tells recipients that, "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."

The email then asks recipients to "visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage" (a fraudulent link is provided). It then instructs recipients to "download and open your personal FDIC Insurance File to check your Deposit Insurance Coverage."

This email and associated website are fraudulent. Recipients should consider the intent of this email as an attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft.

The FDIC does not issue unsolicited emails to consumers. Financial institutions and consumers should NOT follow the link in the fraudulent email.

For More Information

For more information, Read "Facts for Consumers" at the Federal Trade Commission's Web site at www.ftc.gov/bcp/edu/pubs/consumer/credit/cre40.shtm or ask a Bank employee for a copy.

Check out the different types of check fraud at www.fakechecks.org.

Read more about check fraud at www.lookstoogoodtobetrue.com.