Fraud Alert: Annapolis Businesses Lose Money To Scammers

ANNAPOLIS, MD — Two Annapolis area landscaping companies were targeted by scammers in the past week in a new spin on an old scheme, according to Annapolis Police. Both businesses were contacted by phone or email and asked to perform landscaping work at homes before the scammers moved into the houses.

Authorities say the companies received checks by mail for more than the amount billed and then were asked to transfer the excess to another bank account. The “check overpayment” scam steals from victims who get stuck with a big loss when scammers pass off bogus cashier’s checks, corporate checks, or personal checks.

The Federal Trade Commission says a check overpayment scam begins when a scam artist replies to a classified ad or posting and offers to purchase the item for sale, or requests services such as the landscaping work, with a check, then comes up with a reason for writing the check for more than the invoiced price. The unsuspecting consumer is asked to wire back the difference after the check is deposited. Later, the scammer’s check bounces, leaving the consumer liable for the entire amount.

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These tips can help you avoid check overpayment scams:

• Know who you are dealing with – independently confirm your buyer’s name, street address, and telephone number.
• Never accept a check for more than your selling price or invoiced amount.
• Never agree to wire back money to a buyer – a legitimate buyer will not pressure you to do so, and you have limited recourse if there is a problem with a wire transfer.
• Resist pressure to “act now.” If the buyer’s offer is good now, it should be good when the check clears.
• If you accept payment by check, ask for a check drawn on a local bank or a bank with a local branch. You can visit that bank branch to determine if the check is legitimate.
• Consider an alternative method of payment, such as an escrow service or online payment service. If the buyer wants to use a service you have not heard of, be sure to check it out to be sure it is reliable – check its website, call its customer service hotline, and read its terms of agreement and privacy policy. If you do not feel comfortable with the service, do not use it.

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