A recurring scam involving fraudulent cashier’s checks is making the rounds, again.
Attorneys report receiving settlement or contract-related checks from purported clients who have not paid retainers and have no prior contact with the represented company.
One recent incident involved a lawyer contacted by a “client” claiming he was owed $650,000 from U.S. Energy. After the client signed a fee agreement but did not pay an initial retainer, a FedEx package arrived containing a letter and cashier’s check for the claimed amount. The attorney immediately contacted the company, which confirmed that both the client and the check were fraudulent.
The company’s legal department informed the attorney that the fraudster had been targeting other lawyers with the same scheme for several months.
Attorney trust accounts are particularly vulnerable in these schemes because they often hold substantial sums, and perpetrators hope the attorney will assume the check will clear and disburse funds before the bank discovers the fraud.
Here are some red flags to watch for:
- Cashier’s checks drawn on foreign banks. These take longer for banks to verify, giving fraudsters time to pressure attorneys into disbursing funds.
- Requests for funds to be wired internationally. The scammer often cites an emergency and urges rapid transfer, making recovery difficult.
- No face-to-face contact. Communication is limited to email, phone, or text, with the client claiming to be out of town or extremely busy.
- Suspicious email addresses. Scammers create emails that mimic legitimate companies, often with minor misspellings.
- No upfront payment. The client requests the attorneys fee to be deducted from the proceeds of the cashier’s check, sometimes for substantial amounts, for minimal work.
Members are urged to verify the legitimacy of all unexpected funds before disbursing and to report suspected fraud to the proper authorities.
LegalFuel — The Practice Resource Center of The Florida Bar, has additional resources available on its website to help lawyers recognize and avoid becoming victims of a scam.
Florida lawyers targeted by new wave of cashier’s check fraud
