Beware The Check Cashing Scam

I received this warning from a group of writers I work with. They asked that their name not be mentioned, but did give me permission to post the warning.

We recently learned that two of our members were fraudulently contacted
for speech-writing work by a Nigerian person.

We are assume that this fraudster found email address from
members' profiles, personal websites, blogs, or another place on
the Internet.

Here is how the scam works: The writer can quote any price and the fraudster agrees -but insists on sending a certified cashier's check rather than using PayPal. For those of you who are new to work at home-online, and freelance writing, this in itself is warning #1, something is wrong. Everyone uses paypal.

Then the fraudster's secretary has made a mistake and sent an international cashier's check that belongs to another client which is ten times or more than the amount contracted.

Here comes red flag #2.

He then requests the writer cash the check and refund the difference via Western Union, because he has "come to trust you so well." The recipient of the WU transfer is not revealed until the check has been cashed and confirmed.

First, most clients will ask you to return the check, not cash it, or they may put a stop payment on it.

You need to understand that there is a difference between a check cashing, and a check clearing. A check may clear in your bank after 2 - 10 days, but this doesn't mean that the funds are in your account. All it means is that the funds are available and the transaction has started.

It is a very common scam to ask people to cash a cheque, and then send the money. Some writers think they are smart and wait until the check clears before sending the money. The fraudster removes the money from their account - defaulting the check.

This scam comes in many forms. Here is a Canadian/American version of the check cashing scam that tricks people into thinking they have won money from publisher's clearing house and rips them off about $4000 - $5000