Money Order Scams

Here are more details on this costly scam.

Be skeptical when you're approached online by someone paying with a money order.

Counterfeit money order scams, including postal money order scams, often start with what appears to be an innocent contact via an online chatroom or by email.

Con artists posing as students, tourists and overseas military personnel ask for help in cashing money orders, or target people looking for love or companionship, in order to exploit their vulnerability. Online auctioneers are also at risk. Scammers buy goods or services online and offer payment by money order, often in excess of the actual value of the goods or services.

In other cases, con artists ship the money order and ask the victim to cash it, keep a portion as a "gift," and wire back the rest, usually to an overseas address.

How to tell if it's official

• Denominations are indicated on two locations.
• Discoloration of the denomination amounts indicates erasure (fraudulent).
• Maximum value for domestic postal money orders is $1,000.
• Maximum value for international postal money orders is $700. (Maximum for Canadian money orders is $1,000.)

To verify a postal money order, call the Money Order Verification System at 1-866-459-7822. If you suspect fraud, call the U.S. Postal Inspection Service at 1-877-876-2455 (select option 4).