Dec. 5, 2003

Cashier's Checks Used In Web Scams

Thieves Con Internet Sellers Out Of Money And Merchandise

  • Play CBS Video Video Cashier's Check Scam

    The government has begun tracking a new Internet scam where thieves use bogus cashier's checks to con people out of money and merchandise, Vince Gonzales reports.

    •  (CBS/AP)

    • Isabel Negrete cries as she recounts being arrested after trying to deposit a phony cashier's check.

      Isabel Negrete cries as she recounts being arrested after trying to deposit a phony cashier's check.  (CBS)

    Previous slide Next slide
  • Interactive Cyber Crime

    Find out about viruses, worms, and other ways people can attack both you and your computer online.

  • Special Report Consumer Alert!

    Don't get taken! Check out our special coverage section. Know of a scam that needs investigating? Tell us about it! scams@cbsnews.com

(CBS)  CBS's Vince Gonzales reports on a new scam, aimed at Americans from outside this country, which blends new technology -- sales on the Internet -- with one of the oldest crimes in the book: counterfeiting.


When Michelle Brown offered her car for sale online, a foreign buyer sent a cashier's check for nearly $6,000 more than her asking price.

"He said 'You keep the portion that's for you your car, and then the rest you have to send to my shipper,'" Brown said.

She deposited the cashier's check with no problems.

"I figured if the bank had a problem with it, I would know whether this was bad or not," she said.

It was bad all right. But the bank didn't notify her until ten days later.

"I've lost, so far, over $8,000 with all the fees and the loans."

CBS tried to track the scam artists. But the London address was fake. They used untraceable Nigerian cell phones and vanished after picking up the money she wired to this Western Union.

"I've never heard of a counterfeit cashier's check in my life," says Brown.

But banks have heard about it. At least 40 times this year, the federal government sent alerts to the heads of every financial institution in the country -- warning about a growing international scam using counterfeit cashier's checks.

Washington Mutual, which declined an on camera interview, says it sends these alerts on to branch managers.

But apparently their customers aren't warned.

"I'm being treated like I'm a criminal. ... like a convict or something,'' said Brown. "Like I did this on purpose."

She was treated like royalty compared to Isabel Negrete. This stay-at-home mom tried to sell a vintage stove on-line.

"Fifties style is coming back. I thought somebody would want it,'' she said.

Unfortunately, that somebody was a crook from Nigeria. When she went to deposit the cashier's check, Bank of America called the issuing bank, found out it was counterfeit. Then they called the police.

"I didn't think it would be this hard to say it," said Negrete, beginning to cry. "They proceeded to handcuff me. It was very humiliating. It was awful. I was very scared.

She was brought to a county jail still handcuffed. Then she was booked, photographed and stripped-searched.

"It's been devastating," she says. "Very humiliating."

Bank of America wouldn't speak on camera about the arrest. But a spokesman says tellers followed proper procedure. Police, however, are no longer investigating Isabel Negrete.

Gonzales broke the news to Negrete that the police department was going to recommend that no charges be filed against Negrete

"Are you serious?,'' she said, hugging Gonzales.

While some scam victims wonder if they'll ever get back on their feet financially, Negrete says the counterfeiters, the bank, and the police have taken something from her that can never be replaced.


© MMIII, CBS Broadcasting Inc. All Rights Reserved.

Exclusive Webshow

Michelle Obama tells how her role as the First Lady has changed her perspective. Watch Now

Latest News
News in Pictures
Scroll Left Scroll Right
  • The Berlin Wall The Berlin Wall

    Photographer Peter Turnley Captures the Fall

  • The Fall Of The Berlin Wall The Fall Of The Berlin Wall

    Looking Back at the Wall that Once Divided Germany On the 20th Anniversary of Its Collapse

  • Patricia Clarkson Patricia Clarkson

    Television and Film Actress, Yale School of Drama Graduate and Academy Award Nominee

  • Day in Pictures Day in Pictures

    A Glimpse at the Day's News as Seen Through a Camera Lens

  • Andre Agassi Andre Agassi

    Former Top-Seeded Tennis Star, Gossip Column Favorite and Philanthropist

  • Yankees Victory Parade Yankees Victory Parade

    The Yankees Celebrate Their 27th World Series Championship with a Ticker-Tape Parade Up Broadway

Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: