Kitchener-Waterloo

Young people targeted by online cheque scam, warn Waterloo region police

Police in Waterloo region say young people have been falling for a scam where someone asks them via instant messaging to cash a cheque, promising they can keep a portion. After the victim cashes it and sends money back, the cheque bounces.

Youth shared 'money-making opportunity' with friends, who also got scammed

Young girl with glasses looking down at cellphone
Police in Waterloo region have issued a warning because they say young people are falling victim to an online fake cheque scam. (Shutterstock / tetxu)

Teens in Waterloo region are being warned about a scam where fraudsters are sending fake cheques through instant messaging.

Waterloo regional police say the scam goes like this:

  • The fraudster sends a tantalizing message offering a money-making opportunity. 
  • They ask the teen to deposit a cheque for them, and send the victim photos of the front and back of the cheque so it can be deposited online. 
  • They tell the teen to keep half the money and send them the other half. 
  • The victim deposits the cheque online, which usually allows them instant access to the funds.
  • When the cheque bounces, the victim is out the money they've sent the fraudsters.

Police say in one case, a Kitchener youth received a message on May 19 and a cheque for $1,200. They were told to keep $600 and e-transfer the other $600. 

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

The Waterloo Region District School Board released a statement on its website Friday afternoon, saying the scam has "affected multiple youths in the Waterloo region."

Police said anyone — not just youths — who receive an email or message where someone sends a cheque and asks to have money transferred to someone else, should "know that this is a scam — no matter how reasonable the explanation."

Hold the funds

"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," police said.

They added people should ensure a cheque has cleared at their bank or credit union before spending it or sending any e-transfers. This usually takes several days. 

For example, RBC says on its website that money from cheques can be withheld for 4-5 days if drawn on a Canadian bank, 15 days if drawn on a U.S. bank and up to 25 days if drawn on a non-Canadian or non-U.S. bank.

People who may have been a victim of a scam should contact the Canadian Anti-Fraud Centre or the Waterloo Regional Police Service.