Don't Fall For This Property Loans Financing Scam
a deposit, insurance or an administrative fee, before receiving your reward.
There are many ways a scammer can ask for an advance fee, including through the postal mail or online. They might claim to be a representative of a fictitious company or government agency. They might also use a fictitious company name, logos and letterheads.
They might also tell you about a large amount of money that's trapped in banks, or a 'difficult to access' inheritance that they need your help with. They might even tell you about a story of a wealthy foreigner who was smuggled out of their country and died without leaving any heirs or family members, or they might say that there's a bank employee working in your area who's discovered a hidden cache of gold.
These stories may be believable, but they can be misleading and will lead you to believe that you need to pay a fee before the promised reward is sent to you. This type of scam is known as an 'advance fee fraud' and can be a very serious crime.
It's important to remember that legitimate lenders will never ask you to pay a fee before they give you a loan or credit. If you're unsure whether the lender you're dealing with is genuine, check the lender's website or contact your state attorney general or financial services regulator to find out if they're registered.
If you receive a payment by accident, it's a good idea to dispute the transaction with your bank or credit card provider. This way, if you do pay out the money and later discover that it's fraudulent, your bank will reverse the transaction from your account and recover the funds for you.
A common scam involves an email or phone call from someone claiming to be a representative of a 'government agency' or a 'financial institution'. They might tell you about a large amount of money they need to transfer out of their country, or they might tell you that there's a 'financial issue' with your home or car and need your help with fees and taxes before the promised reward can be released.
4. Scammers ask for a check.
One of the most common scams involves using fake checks. These are counterfeit checks that look authentic, but you can't use them to withdraw cash from your account. You'll end up losing a lot of money if you don't watch out for these shady deals.
Fake check scams are among the most popular forms of fraud, and they're a big cause of bank accounts being frozen. They're also one of the most difficult to detect, so be on guard if you receive a check that looks like it's legitimate.
Scam artists often try to trick their victims into wiring money back to them. This can happen when they send a cashier's check, checkbook, or money order for more than the agreed upon amount. In this case, they'll tell you to deposit the check, keep the extra money, and wire the rest to them.
You can identify a fake check by checking the routing number on it. This is a nine-digit identification number unique to each bank.
It may look similar to the real thing, but it doesn't have the same color-changing ink, watermarks, or security threads. Scammers often copy these features to make their checks look authentic, but they're not fool-proof.
If you are suspicious of a check that you've received, contact the issuing bank and ask them to verify it. You can do this by calling the official phone number listed on the check, or by visiting the bank's website to find out if they have an online chat feature.
Another way to recognize a fake check is to look at the amount of the check. If it's higher than you expected, that's a good sign that it's a scam. It's also a good idea to ask the buyer if they'd like you to meet them at a local bank to confirm that the check is legitimate before committing to the transaction.
If you've been the victim of a scam, it's important to report it as soon as possible. The Federal Trade Commission has a tool to help you do this.