Information Center

For more information contact:
Peggy L. Hudson
Senior Vice President - Marketing
American Trust and Savings Bank
563.589.0829

 

NEW CHECK FRAUD TARGETS DUBUQUERS

(DUBUQUE, IA) – Mark Casel, Vice President and Cashier at American Trust & Savings Bank, has received reports from bank clients that a new check fraud scheme is affecting some Dubuque residents. “The fraud consists of a too-good-to-be-true offer that could end up costing them money,” said Casel. From conversations Casel has had with persons who have been involved in this scheme, here’s how it works: Consumers receive an invitation to participate in what they think is a “mystery shopping” job, one in which they would be hired by one company to secretly “shop” another company and report their experiences there. The company that supposedly hires these potential shoppers sends them a cashier’s check for large sum of money drawn on a check from a bank out of the area.

The potential shoppers are instructed to deposit the checks into their personal bank accounts and to make several mystery-shopping purchase transactions at local stores. The shoppers then use Western Union to wire a portion of the deposited funds back to the scheme’s perpetrator as a means to monitor the level of service provided. Next, the shopper is asked to complete a report and send back the remaining funds as well. The deposited checks bounce and the consumers are out the entire amount of the check as well as the funds transferred.

“Consumers need to be wary of too-good-to-be-true financial opportunities offered by companies or individuals they don’t know personally,” said Casel. “There are many other fraudulent check scenarios where people receive a check that may look valid and may be accepted for deposit by a bank. The bank may make the funds available to the consumer initially, but if the check is fraudulent, the bank will return the check to the depositor,” he added.

Additional descriptions of fraudulent check scenarios are in the Info Center located on the American Trust web site at americantrust.com/Info_Center/News_Releases.html

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Date: February 29, 2008