To protect your business; to protect your customers - Be on the Lookout for Counterfeit Money Orders

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To protect your business; to protect your customers

Be on the Lookout for Counterfeit Money Orders

A fraud scheme involving counterfeit checks and money orders is speeding across the Internet, costing financial institutions and their customers thousands of dollars.

The scam begins when scam artists hide behind the internet, posing as students abroad, someone working overseas, or stranded travelers needing help to cash a check or money order. The scam artist contacts the victim by e-mail, through an Internet chat room, or on an online auction site.

The unsuspecting victim provides a home address, to which the scam artist sends the check or money order, with a request to cash or deposit it into the victim's bank account. Victims are told to keep some of the money as a gift or payment for their help, and wire the remainder back to the scam artist.

The catch? The money orders or checks are counterfeit.

The U.S. Postal Service has incorporated security features that distinguish U.S. Postal Service Money Orders from other instruments; understanding these features will protect you from being made the victim of this type of scheme. Similar to U.S. currency, Postal Money Orders are specially designed with different-colored inks, watermarks, and security threads. U.S. Postal Inspectors advise you to protect your business and your customers, by verifying the authenticity of U.S. Postal Money Orders using the security features listed below:

• A watermark of Benjamin Franklin is visible on both the front and reverse side of the money order when held to the light.
  
  
• A 'USPS' security thread is embedded in the Postal Money Order paper.
  
  
• Red ink on the Postal Money Order serial number bleeds through to the back side of the paper.
  
  
• Paper stock should be crisp and textured.
  
  
• Warning instructions are listed on the reverse side of a genuine Postal Money Order.
  
  
• Denominations are indicated in two locations on the Postal Money Order.
  
  
• Denominations should be no larger than $1,000.
  
  
• There should be no discoloration around the denomination amount. If there is, this indicates that the original amount has been erased and a new one inserted.

If you cannot verify all of theses security features, do not accept the Postal Money Order.

Although the cash value of counterfeit money orders varies, most of the phony notes identified by the Postal Service range between $750 to $950 - just below the $1,000 maximum. It is common for a victim of this scam to present a number of money orders at the same time, or the victim may say he or she is cashing Postal Money Orders for a 'friend' overseas.

Please remember to check the authenticity of Postal Money Orders and help stop this scam!

Notify your local police department of instances of fraudulent Postal Money Orders discovered. Local police are requested to coordinate and share investigations of counterfeit U.S. Postal Money Orders with INTERPOL USNCB.

Alert provided by NCB Washington