The scam has been nick-named "Operation Homeless" and it's happening across the country.
Transients are approached and offered money for cashing fraudulent checks. But now, one suspect is behind bars.
Police said Derrick Andrews, 22, Georgia, has been arrested in connection with the scam.
Men come into town and provide transients with fake checks. The checks are cashed and the transients walk away with a portion of the money.
The first reports in Lincoln came out of two Security First banks back in January.
"Three transients had been arrested for passing those checks," Ofc. Katie Flood, Lincoln Police Department, said. "We learned that men had come into LIncoln and offered the transients lodging in a hotel and fast food meals."
Police said they discovered a rental car that was used by the suspects.
"The car was processed and one finger print came back to Derrick Andrews," Ofc. Flood said.
On March 18, the scheme popped up again at two Pinnacle Banks involving three new transients. Only one was successful, walking away with almost $4,000.
This time, police said Andrews did not immediately leave town.
"Derrick Andrews was located on a traffic stop," Ofc. Flood said. "He was positively identified by the transients involved. We were also able to recover surveillance from those McDonald's and confirmed it was Derrick Andrews."
He has been charged with three counts of second degree forgery.
Police said there are possibly two other people involved in the scheme. They've reported more than $20,000 have been lost.