We've had many reports about a scam that victimizes unsuspecting B&B owners. Here's what happens, as described by a BBOnline member innkeeper in Oklahoma City:

"We got a fraud check for $3500.00. Guy from England made reservations for 12 days, for $1200 plus tax. Said his company accidently sent $3500 and wanted us to provide him a check for the difference."

Here's how it works: A prospective guest emails to reserve an extended stay of a week or two. In one recent report, the prospect said she was traveling from England on business for two weeks. Another scammer claimed to be a tennis star planning a week of vacation with meals and massages. Several innkeepers have reported a variation that has a travel agent booking on behalf of a customer. One group of innkeepers discovered through an email discussion that several of them had received similar reservations for a religious retreat from the same person.

Next, a message comes that the check for the stay is on the way - in some cases it arrives at the inn first - but the amount is substantially more than the total cost of the stay. The scammer instructs the innkeeper to cash it and send the excess to someone: sometimes a (bogus) rental car company, sometimes back to the "guest." Another variation involves an advance reservation with a big check for payment in full, and a sudden emergency requiring cancellation and a refund - paid from your funds before before the check clears. One innkeeper received a big check via Fedex; she contacted the issuing bank and discovered the account was fraudulent (as all of them are, most likely). Obviously, the scammer wants you to send out YOUR money before you discover the bad news.

How do you avoid being taken in? First, tune your innkeeper "antenna" to this kind of setup so you can see it coming before getting conned. There's no need to accept a suspect reservation at all. If you get so far as to receive a check, do nothing until it clears. Or, require a credit card to hold, and cash payment on check-in. The "guest" rarely checks in. Make potential guests aware that you do not give refunds under any circumstances, but will "credit" the stay for another time. Many scammers stop communication at this point. If you are suspicious, inform the "guest" that their behavior is the subject of scam alert and that you'll be sending copies of all correspondence to your state Attorney General, or your state banking comission. Find your state attorney general here:

     http://www.naag.org/ag/full_ag_table.php

look up your state banking department here:

     http://www.csbs.org/links/state_links.asp

     http://www.occ.treas.gov

Don't fall for the false lure of a well-heeled or well-known guest who needs a special favor involving money. Smart innkeepers establish and stick to safe and verifiable payment policies, and rarely get burned!