$80,000 Money Scam? Look for These Major Financial Red Flags Before Depositing Your Next Check

Gabrielle Olya   Tue, March 14, 2023  GOBankingRates

When Joe Schulz*, a small-business owner based in New Jersey, received a new customer order from a company based in Dubai, he felt that something may be off. It turned out his instincts were right, as his company was targeted for what turned out to be a fake check scheme that could have cost him nearly $80,000.   Here’s his story.

A Suspicious Order

Schulz’s company specializes in making custom clothing and merchandise. Though he usually works with major brands, he occasionally does work with smaller companies. However, when a promotional company based in Dubai — where it’s warm year-round — placed an order for 200 custom coats, he felt that something may be off. Nevertheless, he moved forward with the order.

“They sent us the logo and we sent them a mock up for approval, and they said that they were going to wire the money from their United States-based warehouse in Pennsylvania,” he said. “They asked for our bank account information to make a deposit.”

However, the company ended up “accidentally” depositing too much.

“They deposited a check for $93,000 while the order was for $14,000,” Schulz said.

Signs of a Scam

After the deposit was made, the Dubai-based company sent Schulz an email stating that they made a wrong deposit of $93,000. They told Schulz to verify that the check had cleared — which it had — and asked him to wire back the difference between the deposit and the order amount — a whopping $79,000.

“Right away, we started looking into it,” Schulz said. “I saw that the check was cashed into our account and that the money was already available in the bank. But I looked at the check and it was from a construction supply company based in Indiana.”

Schulz did some research into the company listed on the check and found that it was a company that likely dealt with large orders, so a $93,000 deposit wouldn’t raise any immediate flags.

To continue reading, please go to the original article here:

https://news.yahoo.com/almost-scammed-80k-suspicious-check-130024847.html