Counterfeit cheque fraud

What does counterfeit cheque fraud offer?

Counterfeit cheque frauds rely on your willingness to help someone else and perhaps make a profit.

How does counterfeit cheque fraud work?

  • You advertise an item for sale in a listings magazine or paper; on an online advertising board; or on an online auction site. The items are often high-value, such as cars.
  • Someone contacts you from abroad to say they want to buy the item you are selling and you both agree a price. The fraudulent buyer says they will send your payment and asks you to forward the item once you receive it.
  • You then receive a cheque for more than the agreed amount. The fraudster gives you various reasons for the overpayment. For example: to cover shipping costs or to provide cash that the fraudster is unable to access for some reason.
  • The fraudster asks you to pay the cheque into your bank account and, when it clears, to withdraw the excess in cash and send it to them through a money transfer agent or to a specified shipping agent.
  • The cheque you receive is a fake. The banking system only picks this up after the money shows up as cleared in your account and you have sent the money to the fraudster.
  • When the banking system identifies the cheque as a fake, your bank will debit money to the value of the cheque from your account, leaving you out of pocket.

How to recognise a counterfeit cheque fraud

  • Be aware of overseas buyers who readily agree a price without seeing what they are buying
  • If the buyer refuses to agree shipping costs in the overall price, this indicates fraud
  • Any buyer who sends a cheque for more than the agreed amount and asks you to send cash to them, a shipping company or anyone else is very probably up to no good.

What you should do