Check schemes are spreading like wildfire across the nation, and scammers are now using the popularity of the Internet to find their newest victims, according to USA Today.

With the increasing popularity of online auctions, dating and social-networking sites, the scams have gotten worse - so bad that the Postal Inspection Service has launched a TV and print campaign to alert consumers.

USA Today reported that overseas investigators, working with U.S. postal inspectors, have arrested 77 people this year and intercepted $2.1 billion in counterfeit checks headed for the United States. In addition, the Federal Trade Commission has sued two Canadian companies, accusing them of using fake checks to bilk U.S. consumers, they said.

How do you avoid falling victim to check fraud? Be aware and if possible, don’t use checks that often, especially online. USA Today said even though consumers are reducing their use of checks, the creation of fake checks is still a big business. Scammers have figured out that using fake checks to make money is working, and are using them to pay for goods advertised online or to convince people that they’ve won sweepstakes prizes, USA Today said.

Unfortunately, if customers lose money because of check fraud, their banks won’t bail them out, USA Today said. But if the customers can’t repay, the bank gets stuck with the shortfall.  Last year, banks alone lost $271 million from fake checks, according to the American Bankers Association.

The National Consumers League says customers are likely losing much more than that from check fraud because some consumers are using checks at check-cashing centers as well as banks, USA Today said. All types of check-related fraud cost banks $969 million in 2006, the ABA says.

The NCL also says counterfeit checks have become the second-most-common Internet fraud and the top telemarketing fraud since it began tracking scams in 2003. The say on average, victims lose $3,000 to $4,000 per scam.