Waterloo regional police issue warning about cheque scam

Waterloo Regional Police cruiser is seen in Kitchener in 2015. (CTV News)

Waterloo regional police are putting out a warning about a cheque-cashing scam that several Waterloo region youths have fallen victim to.

Police said the scam involves a fraudster sending a message about a money-making opportunity.

“The fraudster asks the victim to deposit a cheque for them and tells them to keep a portion of the funds after e-transferring the other portion of the funds to the fraudster,” police said in a news release.

Police said officers are aware of at least five youths being involved in this cheque scam.

Police said the victim will be given photos of the front and back of a cheque which they then auto-deposit.

Victims are told the photos will give them access to the funds, but police say the victims may actually lose money later when the cheque bounces.

Police provided one example in which a Kitchener youth was asked to cash a $1,200 cheque and was told they could keep $600 if they e-transferred the remaining money back to the fraudster.

“The victim also shared the messaging application contact with friends, who subsequently became victims after depositing fraudulent cheques,” police said.

Of the known victims, police said only one sent money, while the other four youths spent money from the cashed cheque but did not send money to the fraudster.

Police are offering the following tips to help people recognize this scam:

• A general warning sign is when someone gives you a cheque and asks you to send some of the funds elsewhere. If you are told that you will receive money and to forward part or all of that money to someone else for any purpose, know that this is a scam — no matter how reasonable the explanation.
• Whether you are accepting funds or making payments, it's always important to be comfortable with the transaction and aware of who you are accepting cheques from.
• Do not spend money from any cheque until the money has been cleared from the financial institution (bank or credit union) the cheque is being drawn upon.