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October 25, 2011
ALERT: Acupuncture "Overpayment" Scam
CSOMA has detected spike in scam targeting acupuncturists
CSOMA has been monitoring e-mail scams targeting acupuncturists. We have detected a recent spike in scam activity.
Variants of this scam have circulated in the past, but we want to ensure that members—and the acupuncture community at large—remain informed of this threat. This email is intended to alert the acupuncture community to these ongoing e-mail scams and provide information on how to detect and avoid them.
How the “Overpayment” Scam Works
Typically, you receive an e-mail from an individual who will be visiting your area (or is representing a group that will be visiting) and wishes to prepay for acupuncture services by check.
The scammer then sends a forged or stolen check—typically a traveler’s check, money order, or certified check—which you then deposit into you bank account. Sometimes you will consent to receiving the check in advance, but the scammer may send a check even if you have not previously agreed. Checks may even be sent without any prior contact from the scammer.
In some cases, payment is made through a bogus third-party or escrow company.
Finally, the scammer offers a plausible excuse (e.g., wrong amount was sent, trip was cancelled) for requesting a full or partial refund and asks that you electronically transfer the refund to an account that they specify.
If all goes as the scammer has planned, the acupuncturist will send a “refund” to the scammer after the deposited funds are available but before her/his bank has detected the fraudulent check. The scam relies on the additional time that is often required by banks to clear overseas checks.
Red Flags
Keep an eye out for the following “red flags”:
- Solicitation comes from outside of the country, especially via e-mail;
- Prepayment is offered when the appointment is booked;
- The booking is for a group;
- The booking contains a specific treatment schedule (e.g., “two one-hour visits per week for five weeks”);
- The sender reveals unusual personal details (e.g., their age, occupation).
Any one of the above red flags should be cause for caution. More than one almost certainly indicates a scam.
How to Avoid Trouble…
As with most Internet scams, your best guide will be common sense. But here are some specific suggestions to help avoid these scams:
- DON’T accept advance payment for your services;
- DON’T cash any check that is sent as prepayment;
- DON’T assume that a check is legitimate just because your bank accepts it for deposit. It takes time to clear an overseas check;
- DON’T provide anyone with personal financial info (e.g., bank account numbers, credit card numbers);
- DO verify bank checks with the issuing bank. Get the bank’s phone number from directory assistance, not from the person who gave you the check;
- DO let CSOMA know if you encounter new scams targeting acupuncturists.
As always, we welcome and appreciate feedback. You may send comments to info@csomaonline.org or contact CSOMA toll-free at 800.477.4564.
CSOMA. Your Partner in Practice.
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