FRANKFORT, KY. (June 13, 2016) – Treasurer Allison Ball initiated an alert on a check fraud scam that seeks to steal the identity of Kentuckians, her office announced on Monday afternoon.
“When we saw the first check come in late Thursday, my office remained vigilant, watching for fraudulent activity,” Treasurer Ball said in a statement. “When we knew that we had identified a potential scam, we conducted an internal review. Once confirmed, we took steps to immediately contact the Attorney General’s and Secretary of State’s Office.”
The scam is designed to get the check recipient to give away their personal information. The scam goes as follows:
1. The check is mailed (with a certain level of official appearance)
2. The check recipient attempts to deposit/cash the check
3. The check is rejected
4. The check recipient (victim) emails the contact on the “Instruction Letter” excited to get their money
5. The scammers explain it is not a problem and request bank account information to complete the money transfer
6. The scammer then has the victim’s account and name information to use for further illicit gain
The scammer actually signs the “Instruction Letter” as “Mrs. Alison Lundergran Grimes” and calls her the “Finance Manager.” Treasurer Ball says this is why the Secretary of State’s Office was also notified.
“This is a very sophisticated scam. These fake checks have continued to come in. My office doesn’t tolerate people writing fake checks to prey on the good nature of Kentuckians,” Treasurer Ball said. “I hope the Attorney General’s Office works hard to swiftly and quickly prosecute those responsible.
“Seek caution when giving out your bank information,” Treasurer Ball advised. “The Kentucky State Treasury will continue to be a watchdog for the people.”