Community Banks of Colorado

Check Fraud

According to the FTC, counterfeit or fake check scams are on the rise and include the following:

  • Overpayment scams target consumers selling items online – the scammer pays for the item with a check written for more than the purchase price and requests the excess funds be sent back via wire transfer or money order
  • Secret shopper scams target consumers hired to be a secret shopper to evaluate the effectiveness of a money transfer service – the consumer is given a check to deposit into their bank with instructions to withdraw cash and wire the funds through a money transfer business
  • Foreign lottery scams target any consumer – the consumer receives a cashier’s check and official letter that states the check is to help cover fees and taxes, and instructs the consumer to deposit the check, wire part of the funds to pay the fees and taxes in order to receive the full amount of the prize money that they have “won.”

What We Do to Protect You

  • Tellers proactively monitors checks as they are brought in for deposit
  • Disseminate communications across all banking centers alerting them to active regional and national check fraud schemes
  • Ask for identification on cash back transactions

Protect Yourself

  • Throw away offers that ask you to pay for a prize or gift, or that state you have won a lottery you did not enter
  • Do not enter foreign lotteries – It’s illegal to play a foreign lottery through the mail or telephone and most foreign lotteries and sweepstakes solicitations are phony
  • If you are selling something online, do not accept a check for more than the selling price
  • If the buyer insists you wire back funds, end the transaction immediately
  • Be very cautious of checks that you received unsolicited in the mail

If you think you are a victim or have been targeted by a counterfeit check scam, call our Client Services and Solutions Specialists at 877.877.0395 and report it to the Federal Trade Commission, the U.S. Postal Inspectors or your local consumer protection agency.

Community Banks of Colorado is a division of NBH Bank, Member FDIC. NBH Bank operates under multiple trade names in multiple states. Divisions of NBH Bank are not separately FDIC-insured banks. The FDIC coverage extended to deposit clients is that of one insured bank. © 2017 NBH Bank. All rights reserved.