With numerous data breaches affecting millions of people, many Americans are on alert about credit card fraud.
In the case of bank account fraud, your liability will depend on when you report it.
The bad news is, you are accountable for all fraudulent charges on the account if you report them more than 60 days after the statement is sent.
With the potential danger of getting your whole cash reserve wiped out, it’s crucial that you are aware of the most common scams that directly target the funds in your bank account and how to avoid them to keep your money safe.
Check overpayment fraud is a popular sales scam that targets sellers from online auctions and classified advertisement websites.
During a transaction, the fraudulent buyer will pay the seller with a non-cash payment for more than the amount of the item.
In this case, scammers need to move quickly in order to prevent the seller from verifying the check.
The seller will be asked to immediately deposit the full amount and wire the difference to the buyer.
The phony check will eventually bounce and be returned unpaid, which will cost the seller an average of .85 in a deposited item returned fee, according to a 2014 My Bank Tracker analysis.
This is in addition to an average of .40 the seller will be charged for the outgoing domestic wire transfer made to the criminal. The seller will be fully accountable for the fraudulent check and the wired amount, which cannot be reversed.
How to avoid this scam: If you receive any non-cash payments, such as a check, money order, U. postal money order or other similar items, you should take appropriate steps to protect yourself.
Even if you’re not an expert at spotting a counterfeit check, you can avoid becoming a victim by calling the bank where the check was issued or asking your own bank teller to verify its legitimacy.