AUSTIN (KXAN) — The Dyslexia Center of Austin (DCA) recently received a massive check from a donor, but the apparent act of charity was actually a cautionary tale.
“This is such a sophisticated scheme. And they are targeting non-profits,” said Kelly O’Mullan, DCA executive director.
The check seemed legitimate enough — it was for $95,000, and came from a supposed donor out of New York state.
‘We were blown away’
“We were blown away by the cashier’s check,” O’Mullan said. “This was the largest check we have ever received in our organization’s history.”
The man first contacted the non-profit through email saying he wanted to make a large contribution. The check was sent via FedEx and the group deposited the money.
“He followed up with a phone call where he tried to pull on our heartstrings about his son that had died recently who had struggled with dyslexia,” O’Mullan said.
That was all on a Friday. But before the weekend was over, the man emailed back and said some of the money had to be returned because he had made an error in the check amount. He said DCA could “keep” $50,000.
However, DCA’s bank was able to realize the check was fraud before anything happened.
“Thankfully that fraudulent attempt was thwarted,” O’Mullan said. “We were able to catch it.”
FTC: These scams becoming more popular
The Federal Trade Commission (FTC) explains these types of scams are becoming more popular. They work by having scammers send “fake” money and get you to deposit it in your account.
By law, banks have to make deposited funds quickly. In many cases, that’s around a two-day period. Scammers typically reach back out between the deposit, but before the two days, and say you need to send back a portion of the money.
However, since the check is bad, you’re now out the money you sent back, plus the money owed to the bank.
“It throws you for a loop but it takes us back to what we’re doing and that’s to help students with dyslexia thrive,” O’Mullan explained.
DCA said it wanted to share its story to stop it from happening to others.
O’Mullan said Austin police were made aware of the situation. The FTC also recommends you reach out to the state attorney general to file an official complaint.