Connecticut Water is warning consumers about a scam involving checks with the company’s name on them.
Connecticut Water, the Department of Consumer Protection and AARP issued a warning about fake checks that have Connecticut Water’s name on them. Connecticut Water officials say they’ve received multiple reports from people who responded to online advertisements to earn money and were issued fake checks with Connecticut Water’s name.
Officials say the scam works in one of two ways. Some people have reported that after they receive the check, the sender contacts them and asks them to wire back some of the money because they overpaid. When the consumer later tries to deposit or cash the check, it bounces. There have also been instances where the consumer was selling a product and was issued the fraudulent check after sending the merchandise.
Connecticut Water says they’ve received about a dozen reports so far.
"If you’re not expecting a check like this from a company – it’s almost always a scam," cautioned Consumer Protection Commissioner Michelle H. Seagull. "You should not attempt to deposit the check and should contact the company the check appears to be from. Consumers did the right thing in contacting Connecticut Water."
Officials offered the following tips to avoid becoming a victim
- Know who you’re dealing with. In any transaction, independently confirm the buyer’s name, street address and telephone number.
- Don’t accept a check for more than your selling price, no matter how tempting. Ask the buyer to write the check for the correct amount. If the buyer refuses to send the correct amount, return the check. Don’t send the merchandise.
- Consider an alternative method of payment. As a seller, you can suggest an escrow service or online payment service. There may be a charge for an escrow service. If the buyer insists on using a particular escrow or online payment service you’ve never heard of, check it out. Visit its website, and read its terms of agreement and privacy policy. Call the customer service line. If there isn’t one or if you call and can’t get answers about the service’s reliability, don’t use the service. To learn more about escrow services and online payment systems, visit https://www.consumer.ftc.gov/articles/0020-shoppingonline.
- If you accept payment by check, ask for a check drawn on a local bank, or a bank with a local branch. That way you can make a personal visit to make sure the check is valid. If that’s not possible, call the bank where it was purchased and ask if the check is valid. Get the bank’s phone number from directory assistance or an internet site that you know and trust, not from the person who gave you the check.
- Never wire money or pay in any untraceable form. Legitimate buyers don’t pressure you to send money by Western Union or a similar company. In addition, you have little recourse if there’s a problem with a wire transaction.
- Resist any pressure to “act now.” If the buyer’s offer is good now, it should be good after the check clears the issuing bank.
