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Scam Alert: Company gets caught up in counterfeit check scam

Posted at 8:05 PM, Jan 12, 2015

Jim Reynolds quickly learned his company, Richey Metals, was caught in a large-scale counterfeit check scam.

“We received almost 150 checks drawn on our account; none actually came out of our account,” says Reynolds.

Con-artists got ahold of one of Richey Metals` checks and began producing  counterfeit versions and used them in financial transactions all over the country.

“There were several people doing it, whether they sold the information on the Internet to somebody else, is what we suspect happened. It wasn`t the same person over and over doing it,” says Reynolds.

Postal inspectors began tracking the checks and quickly learned the broad scope of the scam.

“Most of these [victims] were younger individuals, college students. They posted their apartment for sub lease on Craigslist or another marketplace, and they would receive interested parties saying they were an overseas student and they were interested in the apartment. I`m going to send you a check,” says David Gealey, a U.S. Postal Inspector.

The students would receive a check in an express mail package and would question why it was for more than necessary.

If they did deposit the check, they were told to send the difference back to an address. After a few days of 'processing', the check would bounce and the students or victims were on the hook for the money.

“If you receive a check for more than the amount of the product, use common sense and say this isn`t right and don`t participate in the transaction,” says Gealey.

The Richey Metals company worked with its bank and did not lose any money, but the scam has taken a toll.

“I can tell you it`s a long process, it wears on you and we`re thankful we didn`t have any issues with losing money and you gain a new respect for what`s going on out there and the criminals,” says Reynolds.

If someone asks or instructs you to send money to them, odds are it's a scam! Especially if you are conducting business online and don't really know who you are dealing with.