Con Artist Scams

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FDIC Consumer News – Winter 2006/2007 – Money Order and Fake Check Scams


Related Consumer Finance Programs - The following sub-directories of companies offer a wide variety of financial programs to assist you with the management of your finances. Consolidate debt with a consolidation loan or use a debt counseling service or mortgage refinance for help with the consolidation of your charge card debt and other monthly payments.

  • Fast Personal Loan - Looking for a smaller loan for the consolidation of debt? Start your search at the directory of personal loans, where you can compare and apply online with different lenders and related companies.
  • Debt Management Programs - Too many credit cards and other bills to make monthly payments on? Start here by reviewing and comparing different debt management options for getting help with your credit card bills and other monthly obligations.
  • Debt Settlement Services - If you have too many credit cards and other small debts and are unable to make your payments, this form of debt negotiation may be right for you.

Avoid Costly Scams Involving Fake Checks and Money Orders

Consumers and businesses often lose thousands of dollars in transactions with con artists


Take additional precautions to make sure a check is good. Consider insisting on being paid with a money order or a cashier's check (not a personal check) drawn on a local bank or a bank that has a local branch. That way you can take the check to that bank's branch to ensure it's valid.

Also consider asking for a money order from the U.S. Postal Service. These come in values of up to $1,000 for domestic money orders and up to $700 for international money orders.

To confirm that a Postal Service money order is valid or to cash it, you can take it to a local post office. You can also verify a Postal Service money order by using an automated service at toll-free 1-866-459-7822.

Private financial services companies also issue money orders, but it's up to you to take appropriate precautions.

For example, "Don't depend on a phone number that's printed on a check or money order," Nelson stressed. "If this is a fraud, one of the criminals may answer and tell you that the check or money order is legitimate, or you may get a voice mailbox that the swindlers set up to sound real and reassuring."

In general, it's always best to use a phone number listed in your phone book or another directory, not the number printed on a check or money order or told to you by the other party.

Another way to be more comfortable that you're dealing with an honest person – especially someone you're dealing with over the Internet – is to try to confirm his or her name, address, home number and work number through some independent means, such as an online database or directory assistance.


Winter 2006-2007 | Depositing Check From a Stranger | Walk Away From a Deal |
Recognize Other Warning Signs | Take Additional Precautions | Immediately Report Fraud


FDIC Consumer News is published by the Federal Deposit Insurance Corporation


FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.


Find current and past issues of FDIC Consumer News at http://www.fdic.gov/consumernews. Refer to this same index to locate the issues that are specially formatted for being reprinted in any quantity.


To receive an e-mail notice about each new issue of FDIC Consumer News posted on the FDIC Web site, with links to stories, follow instructions posted at www.fdic.gov/about/subscriptions/index.html.


Last updated on 2/1/2007

Consumer resources and related info:


Make the correct decisions when shopping for banking, debt consolidation and related financial services. Educate yourself!

The Debt Consolidation Loan Directory has a growing library of free informative / educational financial resources for consumers shopping for many types of services related to the management of your money, such as consolidating credit card debts, fraud alerts and car insurance. There is no better way to make decisions regarding the management of your personal finances than to read and understand how they work. Please feel free to visit our consumer resource library for more information.

  • Cell Phone Banking - New cell phones are constantly evolving and becoming more sophisticated. This includes adding the capability of handling online banking through your phone. This FDIC article discusses some of the possibilities and precautions you should take when using your phone for banking purposes.
  • How to Protect Yourself with FDIC Insurance - Read up on what qualifications are necessary and how to determine if your deposits are covered by FDIC insurance.
  • Direct Deposit Safer than Checks? - The US Treasury Department reports that a majority of surveyed consumers mistakenly believe that paper checks are safer than direct deposit.
  • Consider the Fees! - Learn what to look for and examine the details of each banking account offer for possible fees, such as: inactivity, minimum balance and ATM withdrawal fees.

Please Note

debtconsolidationloan.com (Debt Consolidation Loan) is a free web service and directory. All information is deemed reliable, but not guaranteed. debtconsolidationloan.com is not responsible for the content and services, that may be provided to you, by following the links from this web site. Use this service at your own discretion. Last site update: 2012-02-01.