I'm not really sure if this belongs in this forum or not, but I'll just leave it here and let Ritzmar figure that out. (WOW! Am I a heel or what?)

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Scam Alert!

A new scam has recently taken hold and is quickly gaining steam in (primarily) the online marketplace. To a lesser degree this recently devised fraud scheme is also being played out in the traditional media venues such as radio, TV and newspaper ads. And almost anywhere else a firm or individual offers goods for sale.

The scenario: You receive a certified check, or money order, for an item(s) you are selling. The check is often for much more than your asking/selling price. The shipping directions are quite specific and a portion (typically 50%) of the overage is requested to be sent back to the sender as his/her brokerage commission. You get to keep the remaining funds in consideration for your efforts.

This scam plays on greed because it amounts to free money for you. Many people can’t get to the bank machine fast enough. Some go in to the teller with their “proof of goods shipped” so as to be able to deposit the certified check/money order into their account and forward half of the overage to their generous benefactor.

What really happened: Your esteemed partner in business isn’t quite as generous as would first appear. The certified check or money order you received was intercepted in the mail and stolen. Or it was lifted by a dishonest employee of a courier company. Fedex and UPS don’t like to admit this happens but... These stolen negotiables are then sold to a fraud ring at a fraction of their face amount, they then alter the name of the payee to, for example, yours. The altered monetary instrument is now sent on to you and “laundered” by purchasing (stealing) whatever you have up for sale. The fraud ring also gets the balance of the check’s/ MO’s face amount by giving up an imaginary 50% or less of the overage to you. Their share of the overage comes out of your bank account.

What’s going to happen: Most people these days simply deposit cheques into their bank accounts through an ATM. They typically take money out through the ATM as well. Even if you present the certified check or money order to a teller, most banks will release funds immediately as the instrument does not come up showing as stolen or dishonored, yet. The payment you receive will almost always come from an out of state, or even out of country, buyer. The funds you forward to the buyer will also be sent out of state or country. It takes up to a week for the money orders to clear the originating bank and up to three weeks for the checks, by then you have no chance of recouping your losses.

Fortunately this is a very easy scam to beat. You simply remember the old rule: If it sounds too good to be true...!

how are the names on the money orders altered?

the name is put on by the computer and printed out at my bank.
woudnt it be obvious that the name was altered?

According to the alert posted by our trade association, and as I have often noticed, it is the amount which is usually embossed on certified checks and money orders...not the names. These are usually filled in by hand.

However, even if your check/money order does have the name printed on it by hand, printer or other mechanical means, it can still be altered by a skilled forger. This is done by chemically washing the area of the payees name and removing the ink from the check without damaging the printed pattern of the original check.

I've seen it done and even have a fair idea as to what basic chemicals went into the cocktail used to do this. The police weren't giving out the recipe with their demonstration that day though. I believe there's a very good example of this technique shown in the movie "Catch Me if You Can" (Tom Hanks, Leo Di Caprio).