COLORADO SPRINGS, Colo. (KOAA) — Scams come in many different forms and the people behind trying to steal your hard-earned money are getting better and better at their trickery.
Watch: Colorado photographer warns of 'fake check' scam
Mike Pach is a Colorado photographer and small business owner with decades of experience. Pach has been targeted by plenty of scammers over the years, but he has always been able to sniff it out early on, until this most recent attempt.
IT STARTED WITH A NORMAL REQUEST TO HIRE
"My first reaction was that it was legit," Pach said of an email he received recently.
The email came from someone claiming to be a Colorado Springs resident hoping to hire a local photographer to capture moments during her 52nd birthday party. The scammer shared a real address that Pach researched.
"I’m interested in hiring a photographer to capture the
special moments," part of the email from the scammer reads. "Could you also please share your pricing, packages, and any recommendations you might have for the shoot?"
Pach shared his pricing information and they set a date. Pach continued the communication over email, the person reaching out to him even had to change the date of the party at one point "due to health reasons," which didn't seem abnormal to Pach.
"So it's not unusual for clients to do something like that," Pach said of the scammer pushing back the shoot date. "But I don't know the reason for that. If you're, if you're trying to get money from somebody, why not get it as quick as possible, and not change the date?"
OVERPAYMENT IN THE FORM OF A QUESTIONABLE CHECK
Then a FedEx package showed up at Pach's door, on top of that the scammer was tracking the package and immediately notified Pach. Inside was a check addressed to Pach, but it included an extra $2,000 on top of the payment Pach and the scammer had agreed to. That is when Pach knew something was wrong.
An email with instructions on what to do with the extra money was an attempt to prey on Pach's emotions.:
"I hope this message finds you well. My apologies for the delayed response—things have been quite hectic lately. I’ve recently been diagnosed with otosclerosis and am scheduled for surgery to address conductive hearing loss in a few days. I’m currently going through the pre-surgical testing phase, which has presented some unexpected challenges.
My son-in-law is doing everything he can to make this birthday memorable for me, and I am deeply grateful for his support during this time. However, I realize I can no longer rely on him for assistance with this matter, and I sincerely apologize for any inconvenience this may cause you.
As we’re running short on time, I would greatly appreciate your help in getting the funds to the event planner as soon as possible. The planner needs to begin making arrangements for the party, and it’s crucial that we wait until the event day. Once you confirm your availability to assist with the payment, I will provide you with the wire instructions for the planner.
Thank you so much for your understanding and willingness to help. Your support during this time means the world to me, and I truly appreciate it.
May God bless you for your kindness."
Pach picked up on the red flag and realized if he wired the extra $2,000 to someone, he'd be kissing his own money goodbye.
"$2,000," Pach said while shaking his head. "A loss like that would be devastating to me, and it would be devastating to a lot of small businesses around here."
HOW DID NEWS5 CONFIRM THIS WAS A SCAM?
-We reached out to the bank listed on the fake check. It was a bank in Texas and they confirmed it was fraudulent.
-A business name and logo was on the check, we reached out to the business and confirmed with them the check was not associated with the business. An employee also confirmed they have been dealing with this scam for years. The scammer used their business name, address and logo, but the logo was incorrect.
-News5 reached out to the scammer's email, and never received a response questioning their legitimacy.
THE 'FAKE CHECK SCAM'
It is called the "Fake Check Scam" according to the Federal Trade Commission (FTC).
"In a fake check scam, a person you don’t know asks you to deposit a check," part of an explanation from the FTC reads. "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. But this is a scam. Here’s how to spot it."
The FTC added that by law, banks have to make deposited funds available quickly. So the victim may deposit the fake check and funds may become available in their account in a matter of days. The bank may even report the check has "cleared," but the FTC says that doesn't mean it's a good check. By the time it is flagged as fake, the victim may have already wired funds to the scammer and they may be responsible for paying that money back to the bank.
HOW TO AVOID A FAKE CHECK SCAM (FTC)
- 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.
REPORTING A SCAM, EVEN IF YOU DON'T FALL VICTIM
Pach is the owner of 3 Peaks Photography and Design, and he says his time is important to him. He had to deal with the attempted scam while preparing for an upcoming gallery show at Academy Art & Frame Company that opens this Friday.
"One of the things that aggravates me about these scams is all the time that it wastes," Pach stated. "You know, usually I'm pretty quick at catching them."
Pach reported the scam to CSPD online and even contacted Toronto Police, because that was the return address on the FedEx package. Police in Toronto told him they couldn't do anything because he wasn't officially a victim and didn't lose any money.
Pach also reported the scam to the FTC, something many experts News5 has talked to over the years strongly recommend to help fight back against the scammers.
WHAT TO DO IF YOU FALL VICTIM
If you fall victim to a scam, click here for more resources from the FTC.
SPOTTING A FAKE CHECK
The image below is from the Better Business Bureau and highlights red flags you can spot on fraudulent checks.
New video shows the moment Pueblo Police were involved in a shoot-out Tuesday evening
New video shows the moment Pueblo Police were involved in a shoot-out Tuesday evening.
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