By Scott Sykes, CISO

Check Cooking

 How it Works

1. Theft: A fraudster obtains a legitimate check, either physically or through a digital image.
2. Digital Alteration: Using image commercially available editing software, the fraudster manipulates the check information, changing the payee, amount, and often the signature.
3. Mass Production: The altered check image is used to create multiple counterfeit checks with varying information. Watermarks and all are duplicated with precision.
4. Deposit and Cash Out: The fraudulent checks are printed and deposited into multiple bank accounts, often opened under false identities. Deposits are also made using the image capture process in the bank’s mobile app.

Avoidance methods:

1. Monitor accounts regularly: Keep a close eye on your bank statements for any unauthorized transactions.
2. Enable fraud alerts: Set up alerts for unusual activity on your accounts.
3. Shred sensitive documents: Properly dispose of checks and other personal information to prevent theft.
4. Be cautious with check sharing: Avoid sharing check images electronically unless absolutely necessary.
5. Use electronic payments: Consider electronic payment methods whenever possible to reduce the risk of check fraud.

Multistage Grandparent Scam

The multistage grandparent scam is a sophisticated version of the traditional grandparent scam. It involves a series of steps designed to deceive victims into sending money to scammers.

Here's how it works:

1. Initial Contact: The scam typically begins with a phone call from someone claiming to be a grandchild in distress. The caller might claim to be involved in an accident, arrested, or in need of urgent financial assistance.
2. Creating Urgency: The scammer creates a sense of urgency, often asking the grandparent not to inform other family members. This isolation tactic prevents the victim from seeking outside advice.
3. Introducing a Third Party: To make the scam appear more legitimate, the scammer might introduce a lawyer, bail bondsman, or police officer to the conversation. This "third party" will provide instructions on how to wire money or send gift cards.
4. Pressure and Manipulation: The scammers employ psychological tactics to pressure the victim into acting quickly, often exploiting their emotional connection to the supposed grandchild.

Key characteristics of this scam:

1. Multiple stages: The scam unfolds in stages, involving multiple characters and requests for money.
2. Exploitation of emotions: Scammers prey on the emotional vulnerability of grandparents.
3. Urgency: The scammers create a sense of crisis to pressure victims into making hasty decisions.
4. Involvement of third parties: To enhance credibility, the scammers often introduce additional characters like lawyers or police officers.
5. Make it look credible: The scammer provides a “Case Number” that is used with all communications. 

How to protect yourself:

1. Remain calm: If you receive a call from someone claiming to be a grandchild in distress, stay calm and verify the information.
2. Don't rush: Scammers often pressure victims to act quickly. Take your time to verify the story.
3. Contact other family members: If you receive a suspicious call, contact other family members to confirm the situation.
4. Never send money without verification: Avoid sending money or gift cards to unknown individuals, no matter how urgent the request seems.
5. Be wary of caller ID: Scammers can spoof phone numbers to make it appear like the call is coming from a trusted number.