Check Cashing Scams - Prius Inverter

[Wolfpack Mustachian]

I own a Prius and just received a class-action settlement check for Prius inverters. As best as I can see online, it seems legit (we do own a Prius).

I'm probably going to deposit it, as it seems legit.

It did get me thinking, does anyone have any experience with fake checks that scam you if you deposit them? I rarely get checks similar to this, but I'm always very nervous about depositing them. Also, on the off chance, has anyone gotten a check for their Prius for settlement?

[NotJen]

Did you find the settlement website?:  https://www.toyotapriusinvertersettlement.com/

I've been notified of 4 class-action settlements in the last two years through emails in my spam folder that look really spammy.  Luckily, several were mentioned on DoC's website, so I knew they were legit.  For each one, I had to sign up for the class action in order to get any money.  I missed one because I didn't research it in time, so I won't be getting that payout.

If you didn't sign up for this settlement, it looks like there is an option for you to automatically get a check (did you have your inverter replaced?) - though you probably should have gotten a notice about it (could have been years ago).

[GilesMM]

What scam?  You deposit the check and get the money. If the check is not good you don't get the free money.  What does the scammer get out of sending or pretending to send you free money?

[Wolfpack Mustachian]

Did you find the settlement website?:  https://www.toyotapriusinvertersettlement.com/

I've been notified of 4 class-action settlements in the last two years through emails in my spam folder that look really spammy.  Luckily, several were mentioned on DoC's website, so I knew they were legit.  For each one, I had to sign up for the class action in order to get any money.  I missed one because I didn't research it in time, so I won't be getting that payout.

If you didn't sign up for this settlement, it looks like there is an option for you to automatically get a check (did you have your inverter replaced?) - though you probably should have gotten a notice about it (could have been years ago).

That makes sense. I did have my inverter replaced awhile back. I don't remember prior notice about it, but I could have definitely missed/forgot it. Thanks so much for the info!

[Wolfpack Mustachian]

What scam?  You deposit the check and get the money. If the check is not good you don't get the free money.  What does the scammer get out of sending or pretending to send you free money?

That's a good question. I've done some research and seen conflicting information. On the face if it, it seems like low risk, but some sites caution against it. I'm probably just being paranoid.

[cpa cat]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

[GilesMM]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

Seems like the way to combat this is to stop at step #1 and not send anyone money.  Keep their money, if any. Reverse the scam!

[cpa cat]

Seems like the way to combat this is to stop at step #1 and not send anyone money.

Sure. Obviously!

People are way more afraid of random checks than they need to be. People are constantly asking me if it’s ok to cash checks. Very few scammed parties ever ask me if it’s ok to send someone money though!

One of the most common tax scams right now involves scammers from the “IRS” demanding you pay your taxes with Apple gift cards. And people do it.

A variation on the check scam that people are far more likely to encounter than random checks in the mail:

1. You apply for a job. It seems like a legit work from home opportunity.

2. They send you a check to buy a laptop and other equipment.

3. The check is for more than you need, so they ask you to send them the remainder.

3b. The job falls through and they ask you to send the laptop.

4. The check bounces. You have no job and are out the money.

This one works on people because they want the job to work out and the interview process has built trust.

[ChpBstrd]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

There's also a scam-like marketing scheme where you are invite to subscribe to something and the way you sign up is by cashing this $5 or $10 check. You cash the check, and the other party signs you up for some $35/month subscription that is hard to cancel.

[Wolfpack Mustachian]

Seems like the way to combat this is to stop at step #1 and not send anyone money.

Sure. Obviously!

People are way more afraid of random checks than they need to be. People are constantly asking me if it’s ok to cash checks. Very few scammed parties ever ask me if it’s ok to send someone money though!

One of the most common tax scams right now involves scammers from the “IRS” demanding you pay your taxes with Apple gift cards. And people do it.

A variation on the check scam that people are far more likely to encounter than random checks in the mail:

1. You apply for a job. It seems like a legit work from home opportunity.

2. They send you a check to buy a laptop and other equipment.

3. The check is for more than you need, so they ask you to send them the remainder.

3b. The job falls through and they ask you to send the laptop.

4. The check bounces. You have no job and are out the money.

This one works on people because they want the job to work out and the interview process has built trust.

Thanks for this information!

[Wolfpack Mustachian]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

There's also a scam-like marketing scheme where you are invite to subscribe to something and the way you sign up is by cashing this $5 or $10 check. You cash the check, and the other party signs you up for some $35/month subscription that is hard to cancel.

That is another way I've heard it can go wrong, although, I do wonder how they can legally say you're signed up by cashing a check without you actually signing anything.

[ChpBstrd]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

There's also a scam-like marketing scheme where you are invite to subscribe to something and the way you sign up is by cashing this $5 or $10 check. You cash the check, and the other party signs you up for some $35/month subscription that is hard to cancel.

That is another way I've heard it can go wrong, although, I do wonder how they can legally say you're signed up by cashing a check without you actually signing anything.

You endorse the check without reading the fine print, so the check becomes a contract.

[Wolfpack Mustachian]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

There's also a scam-like marketing scheme where you are invite to subscribe to something and the way you sign up is by cashing this $5 or $10 check. You cash the check, and the other party signs you up for some $35/month subscription that is hard to cancel.

That is another way I've heard it can go wrong, although, I do wonder how they can legally say you're signed up by cashing a check without you actually signing anything.

You endorse the check without reading the fine print, so the check becomes a contract.

Interesting. I googled this and couldn't find much on it. Probably a dumb question, but would the fine print be on the actual check itself?

[ChpBstrd]

Check cashing scams work like this:

1. Victim cashes the check.

2. Someone convinces the victim to withdraw the money or transfer the money prior to the check truly clearing, and the victim sends that money to the scammer (or someone else in the scammer’s downline).

3. The check bounces and the bank takes the money from the victim.


There is no scam that stops at #1.

Example:
1. You cash the check.

2. The “police” call you and say you’ll be arrested for cashing the check if you don’t return the money. You are given instructions to return the money by wiring it, along with a fine, to the “police”

3. The check bounces and the bank has very little sympathy for you because they asked you if you were sure it wasn’t a scam when you wired the money.

There's also a scam-like marketing scheme where you are invite to subscribe to something and the way you sign up is by cashing this $5 or $10 check. You cash the check, and the other party signs you up for some $35/month subscription that is hard to cancel.

That is another way I've heard it can go wrong, although, I do wonder how they can legally say you're signed up by cashing a check without you actually signing anything.

You endorse the check without reading the fine print, so the check becomes a contract.

Interesting. I googled this and couldn't find much on it. Probably a dumb question, but would the fine print be on the actual check itself?

I've received these offers both ways. Once it was only on the letter. Another time there was a notice of the reoccurring subscription I'm signing up for near where I'd endorse the check.