The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.

COUNTERFEIT CASHIER'S

Consumers from outside the State of Michigan have reported receiving a letter in the mail from a "management company" with a Michigan address, informing recipients that they have won thousands of dollars in a prize drawing. A purported National City cashier's check is enclosed to pay taxes on the winnings. The letter doesn't ask for any money; it's sending a check – so what's the catch?

The cashier’s check is fraudulent; the letters are mailed from Canada; and there is no legitimate Michigan connection. In order to receive the winnings, personal bank account information is required, supposedly so that the winnings can be "wired into your account."

Consumers must be alert to the fact that bank account information can easily be used to withdraw money through an unauthorized electronic debit, or to create counterfeit checks and clean out the victim's bank account.

Victims may be able to cash the "cashier's check," but just because money from the check may be made quickly available does not mean the check is valid. The check must go back to the originating bank, and it must clear. This process can take several days and, in the case of an elaborate counterfeit, may take a few weeks. Eventually, the named originating bank will notify the victim's bank that the cashier's check is counterfeit, and the check amount will be removed from the victim's bank account. By then, it is often too late to prevent unauthorized bank withdrawals made possible by the earlier disclosure of bank account information.

Perpetrators of this fraud are relying on the apparent legitimacy of a Michigan business address, the false security consumers feel when dealing with a cashier’s check, and that advance payment is apparently not required to receive the cash winnings. Don't be fooled!

Never provide bank account or other personal information to somebody who sends you a letter indicating that you won a prize drawing or lottery.

Do not cash a purported cashier's check that comes to you out of the blue from an unfamiliar source. Call the issuing bank that appears on the check to verify its legitimacy, and report any suspicious activity to the contacts listed below.

If you receive one of these fraudulent letters – or any similar material that you deem suspicious – turn the entire mail piece over to your local postmaster or the nearest Postal Inspector http://www.usps.com/postalinspectors/fraud/ContactUs.htm if it appears that the postmark on the envelope is within the United States. If it appears to be from Canada or involve a Canadian phone number, inform PhoneBusters by sending an e-mail to info@phonebusters.com or calling toll-free 1-888-495-8501.