Bogus cashier checks, ATM fraud increasing in regularity

Fake cashier's checks, ATM skimming devices and a faith-based investment hoax are some of the latest scams being perpetrated on innocent victims, according to a news release by the Missouri Independent Bankers Association.

Fraudulent cashier's checks

With new computer technology, crooks find it easy to produce almost perfect copies of checks from banks and other financial institutions.

Law enforcement agencies advise that you never accept a cashier's check from a stranger unless you call the bank that issued the check and verify the check number and to whom the check was issued. Even though the number on the cashier's check could be a copy of a real number, make sure that the number is on a check that has been made to you.

Many crooks will try to give out fake cashier's checks for purchases on the weekend when banks are closed and the checks can't be verified. Bogus cashier's checks are becoming a major scam targeting people who choose to sell their cars directly to buyers through classified ads.

A potential buyer may approach a seller on the weekend with a check that may bear an official-looking logo in the name of a local bank and have the term "cashier's check" printed across the top of the check. The seller will assume this is a very safe check. Remember, a bank would never issue a blank cashier's check and probably wouldn't issue a specific dollar amount if the sale is not done through normal retail channels.

Do not part with the car until talking directly to the bank to verify the check. Additionally, don't depend on a "bank" phone number given to you by the purchaser. It could be the phone number to a partner involved in the scam.

Check the number out in the phone book. If the buyer is reluctant to have the bank verify the funds, contact local law enforcement.

ATM skimming devices

A new, although not widespread, problem facing consumers and banks today is ATM skimming devices. These scams involve the use of one or more devices to record account and personal identification numbers from an ATM card. Then crooks are able to withdraw money from the account. In some cases, skimming devices are placed on the card reader and the keypad without interfering with the operation of the ATM. Therefore, the customer receives his cash when making a withdrawal. In other cases, a nonfunctioning ATM is installed to capture cards and PINs.

The con artists using skimming devices are not petty thieves. They are part of a very sophisticated and competent organization.

The ATM industry is diligently working to protect ATM cards and assure the public that these cards are safe to use. With more than 360,000 ATMs nationwide, be aware that if something doesn't look right at an ATM, you shouldn't use it.

Faith-based scams

It is estimated that more than 90,000 people nationwide have lost nearly $2 billion to "faith-based" investment scams during the past three years.

According to state securities regulators, faith-based investment scams have risen dramatically. Con artists use religion to promote their scams by using their interpretation of biblical prophecy to predict imminent financial or social crises. Some claim they will reinvest the money in a worthy cause.

Before making any such investment, check with the Missouri Secretary of State's Office. Additionally, make sure the seller has provided written information fully explaining the investment and verify this information with a local banker or financial advisor.

Adopting some practical procedures during any financial transaction greatly reduces the risk of falling prey to thieves and cons.