A money transfer scam that can cost hundreds or thousands of dollars for unaware victims has showed up in Howard County recently.
    Cresco Police Chief Mark Kissinger said the scam, often referred to as a “fake check” scam, a “money transfer” scam or a “mule job,” has been around for several years, but has recently increased in frequency. Several local residents have reported receiving letters from fake check scam artists.
    Though several variations of the scam exist, they all involve a stranger sending someone a fake check and asking that person to cash it and wire the scammer a portion of the money.
    The scammer claims to be a foreign company that needs help transferring money earned abroad to their own bank. The deal is that the recipient of the check will receive payments for them and send them the money by Western Union or bank transfer. The scammer tells the person wiring the money that they will make a commission off of each transfer they make.
    The payments that the scammer sends out will typically be forged checks or other financial instruments. The forgeries often appear very realistic and banks may not detect them immediately. After deposited, the check will clear and the money will be placed into the unaware person’s account.
    Then, the person sends the scammer his or her money, keeping the commission. But a few days later the person’s bank detects the forgery and cancels the deposit. Suddenly, instead of earning a commission, that person has lost hundreds or thousands of dollars of his or her own money.
    Postal Inspectors warn there is no legitimate reason for any contest promoter, business or organization to send  out a check and ask that it be cashed and wired back to them.
    To learn more about check scams go to www.FakeChecks.org. If you receive a letter containing a check and you suspect fraud, don’t cash the check. Instead, report it to Postal Inspectors at www.FakeChecks.org, or by calling 1-800-372-8347.
    Tips for postal customers from the U.S. Postal Inspection Service:
    * Be skeptical of anyone asking you to wire money to overseas bank accounts or to cash money orders or checks on their behalf.
    * Know who you're dealing with. Never give out personal or financial information to anyone you don't know.
    * Familiarize yourself with postal money order security features.
    * Never wire funds to anyone unless you're sure the money order or check they gave you was cleared by your bank and the funds released.
    According to the U.S. Postal Inspection Service, the five other most popular scams are:
    * Foreign Business Offers: Scammers pretend to be businesspeople or government officials and promise millions of dollars. But real companies and government agencies don’t offer legitimate business propositions to people they don’t know.
    * Love Losses: The scammer poses as a romantic interest online, and promises to come to the U.S. to be with the victim. Soon after, the online friend asks the victim to cash a check or money order to cover “travel expenses.”
    * Overpayments: Scammers buy merchandise online, and then claim they mailed the wrong amount by mistake. The seller is asked to deposit the “wrong” check anyway, and then return the “excess” amount to the scammer. But the check doesn’t clear, and the victim has sent the scammer his own money.
   * Rental Schemes: Scammers claim to be moving to the area, and put down a rental deposit. Then they tell their landlord they have unexpected expenses, so they ask for some of their deposit back as a favor. They never move in, and the deposit check never clears.
   * Sudden Riches: The scammer claims the victim has won a foreign lottery or sweepstakes. The notice comes by mail, phone, fax or email. Consumers should know that winners of real cash prizes are notified by certified mail.