Not sure I follow the scam, exactly. Who is the check made out to? What are they expected to do with the $5000? I'm not questioning that's it's a scam, I'm just not as familiar with this one as I probably should be.

Basically, it's another riff on the MoneyGram scam (such as you see for mystery shopping scams). Deposit our check, send us real money, and you're none the wiser until the check bounces as high as the International Space Station.

@BrockBrockman: I think you're supposed to deposit the $5,000 in your account, then moneygram or wire $5,000 to the scammer and then you find out the original check bounces. I think.

James A. Gafield looks like a mispelling of (President) James A. Garfield. Dead presidents are trying to scam you out of your dead presidents!

"Lovet's" phone number in reverse phone lookup points to a cell number on the Fido network out of New Westminster, BC (Canada). I say we all call up Lovet on Skype and rack up his cell phone bill.

If you get a check and you don't know if the check is good for the amount endorse it, "Without Recourse, UCC 3-415, /Signature/" As I learned when my Employer's alleged legitamate check, which happened to be the very last final check after I quit, if you do NOT endorse without recourse, you'll be liable for the amount of the check.

They cash the check and forward it via Western Union to the guy listed, who is involved with the scam, and then when the check comes back fake they're going to lose the $5K. Typical work-at-home/etc. scam.

I know you provided a transcription of the letter but I'd like to be able to read the actual copy. Can you post a larger image?

@BrockBrockman: The check is fake. Once you send money via a transfer service like MoneyGram or Western Union, if it's picked up by the recipient, there is no way to get your money back.

So, the scam is, fake check. It gets deposited, person gets money to send via MoneyGram before waiting for it to clear, or before the bank notices. By the time someone figures out that the check is fake, the money is long gone, leaving the scammer up $5k, and the scammee out $5k.

@ BrockBrockman (reply no workie)

They expect you to deposit the fake check, then send a bunch of it in for "taxes." In a few weeks the bad check comes back from the bank and you are left holding the bag. Both the "tax agent" and "Lovet Franklin" disappear with your money.

@BrockBrockman: They gave him $5,000 to pay the taxes on his "winnings". He deposits check and pays "taxes" (which is a friend of the scammer). Bank figures out check is fake and now you have to pay back the $5000 and the other "winnings" never show.

Horrifically oversimplified so here is Wikipedia for more:
[en.wikipedia.org]

@Lucky225:

I would imagine simply writing that on the check won't absolve you of having to reimburse the bank once the check bounces.

I am a consumer attorney in California and a client recently brought one of these to my attention, the newest twist on this scam, a letter from the "FBI" with a check for $5k for winnings for a lawsuit for, wait you guessed it, a fraudulent check scam operating out of Nigeria. Other than this twist, it is basically the same old check cashing scam, with instructions to pay the taxes via western union, etc. If it weren't for assholes like this, I wouldn't have a job...

@biikman:

And, you would be wrong.

§ 3-415. OBLIGATION OF INDORSER.

(a) Subject to subsections (b), (c), and (d) and to Section 3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 3-115 and 3-407. The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.

(b) If an indorsement states that it is made "without recourse" or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (a) to pay the instrument.

I would march into a Wells Fargo Bank with that check and hand it in to their fraud department, or someone who gives a damn about it. Those banks are fairly common and I'm sure they would be interested in this scam bearing their bank name.

@Consumerist-Moderator-Roz: Well, nothing could really bounce that high, since to "bounce", it would have to return into Earth, and if it had enough energy to go that high, it would probably keep going until aliens came across it floating in space next to a mirror with Zod in it.

Oh wait, it was a metaphor. Sorry ;)

But it looks so real! (Just kidding).

@JollyJumjuck:

Yeah I thought it was odd that a "company" in AB has a 778 area code which is used as the second area code along with 604.

@Jubes: I meant to put in that its used as a second area code in the lower mainland, which is Vancouver and the surrounding cities.

I'm curious what address they would give them to send the real money back to since Revenue Ave in Edmonton is not a real street.

@Lucky225: Well if it's really true that by writing that magic phrase you are no liable if it bounces, then I'm sure the bank will not release the funds into your account until they're absolutely sure the cheque is good. Either way, the important point is if you don't trust a cheque that you're depositing, don't spend the money until you're sure the cheque has cleared. That way whether you've written the magic phrase or not, you won't get caught.

What entertains me most is that lottery and other prize winnings in Alberta, Canada are tax-free. I believe this is true for all of Canada, but am not certain.

Also the most inventive guess of what GST (as it is used in Canada) stands for that I've seen in a while.

@arymede:

Thats correct, you don't have to claim lottery winnings in Canada on your income tax. Just any revenue or interest generated by the winnings.

@Lucky225: "if you do NOT endorse without recourse, you'll be liable for the amount of the check."

You neglect to mention that most banks have a policy of not accepting check deposits from the average customer with the term "without recourse" included, and that there is no law compelling them to do so.

@Lucky225: That UCC provision is pretty cool. Basically the same provision that makes you liable to the bank for the funds also has a safe harbor so you can absolve liability. I always write that on a check if I don't know whether it is legitimate or not.

Although while I am fairly certain that all 50 states have enacted the UCC in one form or another, many have not enacted the most recent version and many also contain revisions to the common language. It would be important to check first in your state before trying to use the provision above.

When will Nigerians learn that "modalities" is not a common word in English. Gives it away every time.

But, I've just won the Spanish National Lottery.

.. so I don't have to worry about them taking my money.
Because I'm rich from the Spanish National Lottery!

"We can't believe people still fall for this crap."

Agreed!

So what if you just deposit the check and don't call the guy?

@haoshufu: The check bounces and your bank takes back the $5000.

Isn't there a way for the cops/banks/FBI to trace the check/phone number/address back to the scammer(s)?

Isn't there a way to deposit a check for collection (not for deposit) so that the funds aren't credited to your account by the bank until they are actually collected? If they're never collected you never have to pay them back.

I also think that some federal banking laws trump the UCC as to checking transactions. "Non-recourse" is fine with a promissory note but I've never heard of a bank accepting a check for deposit with that endorsement.

@Radi0logy: And charges you fees. DONT DO IT

@HeldForRansom_GitEmSteveDave:

Actually it can bounce that high, the ISS stays up because it has a high speed tangent to the earths surface, resulting in a speed towards earth of almost zero.

If an object travels away from earth at a speed greater than the escape velocity then it will never impact earth if only earths gravity acts on it, it will come back if it goes up at any speed under the escape velocity, and there really is no theoretical limit how high you can bounce it (though in real life it might hit something out there or get overpowered by the gravity of some other object if you bounce it high enough)

You have no chance to survive make your time. Accept our congratulations. All your base are belong to us. Ha ha.

Are there really that many people who don't know that it is illegal for Americans to participate in foreign lotteries? I would think this would be common knowledge. Why screw up a clever scam with such an obvious mistake?

@opticnrv:

That's what ATM's are for

@yesteraeon:

I would rather the funds not be released until the check clears anyways, that way when it does clear you know the funds are good and your accounts not going to get messed up.

@Corbin123:

Yes, I usually write it as well, but the very LAST check from my ex-employer, I figured I could trust as none of the other checks bounced, so the one time I forget to write that, the check bounced and I was liable for the funds on top of a $30 return check fee, that will never ever happen to me again, I now endorse every single check I get without recourse.

@mechanismatic: I noticed that as well. When I was little playing Trivial Pursuit with my parents, James A. Garfield was my answer to any question about U.S. Presidents.

I don't think he was ever the answer the right answer. (sigh)

@veg-o-matic: And to think, I didn't even know I had a ticket!

@Lucky225: Define "clear". Do you mean clear, as in the government enforced 1 week waiting period, or clear as in you're home free because it will never come back to you, which is an unknown period of time. In other words, there is no verification that it's officially good, only if it's bad, therefore is there ever really a point at which a check is totally "clear"?

@edman007:

Or, you could simply bounce it off the ISS.

/space pong

@Lucky225: How do you prove that you wrote that phrase? I've gotten copies of checks from my bank (photocopies) and the oly thing they show is the front of the check. I've also heard of banks not keeping copies of the checks, just the info about them (names, tracking, dates, account info, etc.)
If they came after me for that check, I doubt they would present it to any court, just present the facts about it and my account. maybe a photocopy of the front and the records of a non-existant account. The just need to prove I took the money out for a bad check deposited to my account (or spent money that was wrongfully placed into my account without any wrongdoing on my part.. I.E. i thought the 1 million dollars was a gift from a stranger... still liable for the funds!) I doubt they would present the back of the check that would clear me of any fault, it would be on my shoulders to prove that I am not guilty!
What you are saying might clear me of the NSF charges on a returned check, but nothing would clear me from having to pay back the funds from the original check (like your original pay)

lol at the "James A. Gafield" on the bottom. they spelled it wrong... it should be James A. Garfield, the 20th president of the United States. :p

@Lucky225: "That's what ATMS are for"

I work for a bank and I can guarantee you that most ATMs automatically hold check deposits until/unless they can be verified by an employee. If I had seen that written on a check you can damn well believe I would not have released the hold or extended it. The deposits in ATMs ARE checked by real people.

@H3ion: The only restrictive endorsement most banks will accept is "For Deposit Only".

@H3ion: Actually, "Without Recourse" and "For Deposit Only" are common endorsements for checks.

As already pointed out, however, banks are not required to accept deposits with said language and can, and do, reject them.

My credit union used to accept both endorsements. Now, since they've merged with another credit union, they refuse to accept any endorsements with "Without Recourse" language limiting the endorsement. Even if you use the ATM, they just mail the check back to you with a polite letter explaining their policy.

I still, however, write "For Deposit Only" on every check I endorse for deposit (which my credit union's policies still allow). That way, the only way it can be cashed is by depositing the amount in my bank account (stealing the endorsed check would be useless that way).

@Lucky225: do what you want in other cases, but i think we can all agree that the best course of action in THIS case is DO NOT DEPOSIT THE CHECK AT ALL!

@verucalise: Unfortunately with these kinds of scams, no one really gives a damn. Nothing can really be done about it - there's no "real life" information pertaining to the scammer. Fake names and addresses, pay-as-you-go mobile SIM cards are a dime a dozen.

Try going to a local police station or FBI office and they usually roll their eyes or laugh you out.