PPT ON FAKE CHECK

SCAM
DIGITAL EMPOWERMENT
SEC-1
Name- Shruti Maheshwari
Roll no. 20233106
Submitted to- Mr. Prakhar Wadhwa
REPORT ON FAKE CHECK SCAMS

WHAT IS CYBER CRIME ?

● Cybercrime is criminal activity that either targets or uses a computer, a computer network or a
networked device. Most cybercrime is committed by cybercriminals or hackers who want to
make money.
● However, occasionally cybercrime aims to damage computers or networks for reasons other
than profit. These could be political or personal.
● In the age of digitalization, where technology serves as the cornerstone of modern society, the
emergence of cybercrime has become an inevitable challenge. India, a burgeoning economy
with a rapidly expanding digital footprint, is not immune to this global phenomenon.
● The ramifications of cybercrime extend far beyond the digital realm, exerting a profound impact
on Indian society and its economy.
● Individuals fall victim to financial losses, identity theft, and psychological trauma, eroding trust
in online platforms and hindering the adoption of digital technologies. Businesses suffer from
data breaches, intellectual property theft, and disruption of operations, leading to financial
losses and damage to reputation.
TYPES OF CYBER CRIME

TYPES OF CYBER CRIME

Cybercrime in India encompasses a wide array of illegal activities perpetrated
through digital means. Among the most prevalent forms are-
● Phishing
● Social Engineering
● Malware
● Viruses
● Trojans
● Online fraud
● Spyware AND Adware
● Email Worm
● FAKE CHECK SCAMS
FAKE CHECK SCAMS
● In the realm of financial fraud, one insidious scheme has continued to proliferate with alarming
frequency: fake check scams.
● These scams prey on individuals' trust and financial desperation, exploiting vulnerabilities in the
banking system and the digital age.
● In a fake check scam, a person you don’t know asks you to deposit a check. It’s usually for more
than they owe you, and it’s sometimes for several thousand dollars. They tell you to send some of
the money back to them or to another person. They always have a good story to explain why you
can’t keep all the money.
● They might say they need you to cover taxes or fees for a prize, to buy supplies for a job, to send
back money they overpaid, or something else.
● At its core, a fake check scam involves the issuance of counterfeit checks to unsuspecting
victims, who are then persuaded to deposit these checks into their bank accounts. The
perpetrators typically pose as legitimate businesses, employers, or lottery officials, enticing
individuals with promises of easy money, lucrative job opportunities, or prize winnings.
● Once the check is deposited, the scammer urges the victim to send a portion of the funds back,
often citing various reasons such as taxes, fees, or processing costs. By the time the bank
discovers the check is fake, the victim has already sent the requested amount, leaving them liable
for the full sum.
TYPES OF FAKE CHECK SCAMS
● Mystery shopping- Scammers pretend to hire you as a mystery shopper. They tell you that your first
assignment is to evaluate a retailer that sells gift cards, money orders, or a wire transfer service like
Western Union or MoneyGram. You get a check with instructions to deposit it in a personal bank
account and wire some of the money to someone else. But once you do, the money is gone and the
so-called “employer” can disappear, too.
● Personal assistants - You apply online and think you’re getting hired as a personal assistant. You
get a check and are told to use the money to buy gift cards and send the PIN numbers to your
“boss.” But that’s a scammer, and once they get the gift card PINs, they use them instantly. That
leaves you without the money when the bank figures out the check was fake.
● Car wrap decals - You respond to an offer for car wrap advertising. The company tells you to
deposit a check and then send money to decal installers. But it’s a scam, the installers aren’t real,
and now your money is gone.
● Claiming prizes - A sweepstakes says you’ve won and gives you a check. They tell you to send
them money to cover taxes, shipping and handling charges, or processing fees. But that’s not how
legitimate sweepstakes work — and you’ll be out any money you send.
● Overpayments - People buying something from you online, “accidentally” send a check for too
much, and ask you to refund the balance. But that’s a scam.
WHY DO THESE SCAMS WORK ?
These scams work because fake checks generally look just like real checks, even to bank employees. They are
often printed with the names and addresses of legitimate financial institutions. They may even be real checks
written on bank accounts that belong to someone whose identity has been stolen. It can take weeks for a bank to
figure out that the check is a fake.

By law, banks have to make deposited funds available quickly, usually within two days. When the funds are made
available in your account, the bank may say the check has “cleared,” but that doesn’t mean it’s a good check.
Fake checks can take weeks to be discovered and untangled. By that time, the scammer has any money you sent,
and you’re stuck paying the money back to the bank.

Your best bet: Don’t rely on money from a check unless you know and trust the person you’re dealing with.

The repercussions of falling victim to a fake check scam can be devastating, both financially and mentally. Victims
may incur overdraft fees, legal expenses and damage to their credit scores when the counterfeit check bounces
and their bank holds them accountable for the funds.
HOW TO AVOID FAKE CHECK SCAM
● Never use money from a check to send gift cards, money orders, cryptocurrency, or to wire money to
anyone who asks you to. Many scammers demand that you buy gift cards and send them the PIN numbers,
buy cryptocurrency and transfer it to them, or send money through wire transfer services like Western
Union or MoneyGram. Once you do, it’s like you’ve given them cash. It’s almost impossible to get it back.
● Toss offers that ask you to pay for a prize. If it’s free, you shouldn’t have to pay to get it. Only scammers will
ask you to pay to collect a “free” prize.
● Don’t accept a check for more than the selling price. You can bet it’s a scam.
● Research the Sender: Verify the legitimacy of the sender. If it's a company or individual you're unfamiliar with, do
some online research to confirm their existence and reputation.
● Avoid Urgency: Scammers often create a sense of urgency to pressure victims into depositing the check quickly.
Take your time to thoroughly evaluate the situation before taking any action.
● Use Secure Payment Methods: Whenever possible, opt for secure payment methods such as direct bank
transfers or reputable online payment platforms. Avoid dealing with checks from unknown sources.
● Report Suspicious Activity: If you suspect you've encountered a fake check scam or have been targeted by
scammers, report the incident to the appropriate authorities, such as the- Ministry Of Corporate Affairs.
WHAT TO DO IF WE SENT MONEY TO SCAMMER
Stop Further Transactions: If you realize that you've been scammed, stop any further transactions immediately. This includes blocking
the scammer's contact and refraining from sending any additional money.

Contact Your Bank or Payment Service Provider: Inform your bank or payment service provider about the fraudulent transaction as soon
as possible. They may be able to help you trace the payment and potentially freeze or reverse it if it hasn't been processed yet.

Provide Details: Provide your bank or payment service provider with as much information as possible about the scam, including the
recipient's name, account details, and any communication you've had with the scammer.

File a Report: Report the scam to the appropriate authorities. In India, you can report financial fraud to the local police station or cyber
crime cell. Provide them with all relevant details and documentation.

Contact Consumer Protection Agencies: Reach out to consumer protection agencies or organizations in India, such as the National
Consumer Helpline, to report the scam and seek assistance.

Monitor Your Accounts: Regularly monitor your bank accounts and financial statements for any unauthorized transactions. Report any
suspicious activity to your bank immediately.

Educate Yourself: Take this experience as an opportunity to educate yourself about common scams and how to avoid them in the
future. Stay informed about the latest scam tactics and be cautious when dealing with unfamiliar individuals or requests for money.

Seek Legal Advice: If you've suffered significant financial loss or if the scam involves complex legal issues, consider seeking advice
from a lawyer who specializes in fraud or consumer protection law.
 What Are the Signs of Fake Check Scams?
In some cases, scammers may create a brand-new check. In others, they might use a check template and fill
in the relevant details. For instance, they might add account and routing numbers and a credit union or
bank logo.

Another clever scheme known as “check washing” uses chemicals such as bleach, carpet cleaner, or nail
polish remover to erase the ink on the check. Scammers then increase the amount payable by hundreds or
thousands of dollars before cashing the check.

While there are many ways to fabricate a fake check, there are just as many warning signs of counterfeit
checks.

1. Irregular perforations
2. Missing check numbers
3. Incorrect routing codes
4. Odd magnetic ink character recognition (MICR) lines
5. Notations in the memo area
6. Stains or discolorations on the check
WHERE TO REPORT ?
SFIO HEAD QUARTER & REGIONAL OFFICE, DELHI- TELEPHONE- 011-24365787. (off).

FAX – 011-24365809

BOARD LINE Nos:011-24369242/011-24369244/011-24369245/011-24369246

NATIONAL HELPLINE NUMBER :

1930

https://cybercrime.gov.in/

Ministry Of Corporate Affairs

National Company Law Tribunal
National Company Law Appellate Tribunal
Competition Commission of India
National Financial Reporting Authority