Check Cashing Scam Exposed

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Check Cashing Scam Exposed

The scam sends individuals a forged cashier's check for $4,998.

By Drew Sandholm

When Sioux Falls dad Steve Arens opened his mail last week, he found something unusual -- a cashier's check written out to him for nearly $5,000.

It came from Shoppers Input Inc. [sic] and required him to call a number for detailed instructions on how to handle the money. When Arens dialed the number, an operator assured him this is a lucrative opportunity. To begin, the operator ordered Arens to quickly deposit the money into his bank account. Upon doing so, Arens should call the number again for further instructions.

Arens had reservations about going forward with the offer and asked Action News to investigate. He showed KSFY the letter, which is filled with spelling and grammatical errors. It instructs that the money should be spent accordingly:

  • Wal-Mart -- $50
  • GAP -- $40
  • Western Union transfer (to Shoppers Input Inc.) -- $1,579
  • Western Union service charge -- $99
  • MoneyGram transfer (to Shoppers Input Inc.) -- $2,873
  • MoneyGram service charge -- $57

KSFY contacted South Dakota Attorney General Larry Long, who in a phone interview said this is a rip-off.

"It's a scam. There isn't any question about that," said Long. "I can promise you that if you deposit that check, in about five or six weeks, your bank is going to call and tell you it's forged."

When that happens, Long says the individual who cashed the check would be liable. He says the request for wire transfer is a dead giveaway that these kinds of offers are tricks. Often times they have obvious spelling and grammatical errors because they originate outside of the United States. So those trying to get your money speak English as a second language.

The letter Arens received was postmarked in Canada. It lists a few numbers with a 905 area code, which covers southern Ontario. But the letterhead says it's head office is in Bismark, ND [sic]. They misspelled "Bismarck."

When Action News called Shoppers Input Inc. [sic], an operator named "Robert" confirmed that he works in Canada. However, he said they also have a branch location in North Dakota. When KSFY asked where their headquarters or main offices are located, the operator abruptly ended the call.

Long says what makes prosecuting these individuals tough is their foreign locations.

Still every week, Long says his Consumer Protection Division is contacted by a South Dakotan, who has been tricked by one of these scams. He says most victims don't come forward and the problem is only growing.

As for Steve Arens, he hopes no one gets taken for a ride in the future. He said, "It scares the heck out of me. I'd hate to end up owing that kind of money."

If you receive any suspicious offers, contact the South Dakota Office of the Attorney General's Consumer Protection Division by phone at 1-800-300-1986 or visit them online.

Do you have a serious issue you'd like investigated?
Contact Action News by phone at (605) 336-9999 or send us an
e-mail.

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The following comments do not necessarily represent the views of KSFY.com. Users have agreed to these terms and in doing so accept full responsibility for their comments. Moderation is limited.

Wednesday, Nov 12 at 9:42 AM Anonymous wrote ...

money for nothing = scam. C'mon people it's not rocket science. Money for nothing and chicks for free, that's only on MTV.

Wednesday, Nov 12 at 3:04 PM Anonymous wrote ...

How many times do people have to be told about these scams. Come on american's we're smarter than that. Too bad KSFY couldn't get the goods on this one to stop it!!!

Wednesday, Nov 12 at 3:18 PM ZQ wrote ...

The reasons these scams succeed are people are dumbe enough to fall for them.

Thursday, Nov 13 at 10:42 AM I Love Jesus wrote ...

What gets me is that these scams reach the elderly and they are not dumb people. They are very smart. But some of them think it's something good when in turn it's really not. That what saddens me the most!!!

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