What is an automatic withdrawal scam?

Automatic withdrawal scams target individuals with a phone call or postcard indicating that they’ve won a prize or qualified for a special offer. The goal is to get you to read off your account number or the numbers at the bottom of your personal checks so you can get your prize money deposited into your account. Once the scammer has your checking and bank information, they put it on demand draft, which is processed like a check but doesn’t require a signature. Upon receiving the draft, your bank will transfer money from your checking account to pay the scammer. Unless you pay close attention to your daily bank transactions, you may not notice the scam.