Check fraud scam, new on me, at least this way

[binki]

One of the few places I send a check to had their mail stolen and my check to them was in there. I stopped payment and a few months later someone shows up at 2 different branches of my bank wanting to cash a check made out to me, by me on a bank that isn't mine and wants to cash the check for $3500. He had a DL from another state with my name on it.

The best I could figure is they got several checks, washed them or counterfeited them, then used the info from them to go to other banks to try to make the transaction. He didn't get too far, arrested and gone to jail (Los Angeles County so he is probably out now).

So I have heard of check washing where the pay to and the amount are removed and replaced with the perp or an alias and a big amount. This was a twist where they used the info from my check to find my bank but used another check to do the scam.

Fortunately my bank branch not only knows me, knows what I look like and drive but their fraud controls worked. After a lengthy discussion with the bank it looks like I am 100% protected from fraud so nothing to worry about.

 

[Boudica]

Aren't you a little worried that they had an id with your name on it? Sounds like you're victim status is larger than check fraud...

 

[Notarealsignguy]

 

[SignMeUpGraphics]

I'm always surprised the USA still relies heavily on checks... Last time I saw one would be 10+ years, and that's probably the last time I walked into a branch too.
Everything over here is done electronically and virtually instantly these days.

 

[Texas_Signmaker]

They don't wash checks anymore. They create new checks using the numbers from your old one, that's why it looked different. They got your name from the check and printed a fake ID to try and cash it.

You need to freeze your credit file because they might be able to use that info to open new credit accounts.

 

[Notarealsignguy]

I guess I'm stubborn because I prefer checks both paying with them and receiving payment with them. I feel like I have more control over cash flow like that and always try to have payment terms unless it's just a onsie twosie vendor.

 

[Texas_Signmaker]

I'm always surprised the USA still relies heavily on checks... Last time I saw one would be 10+ years, and that's probably the last time I walked into a branch too.
Everything over here is done electronically and virtually instantly these days.

The problem here is that the only alternative is credit cards and there is a 3% on them. Checks are fee free but unsecure. They need to do something about the credit card fees but they won't because the lawmakers make too much $$ from them.

 

[Notarealsignguy]

They don't wash checks anymore. They create new checks using the numbers from your old one, that's why it looked different. They got your name from the check and printed a fake ID to try and cash it.

You need to freeze your credit file because they might be able to use that info to open new credit accounts.

We print our checks including the account and routing number. I could probably stick anyone's info on it and run my payroll or whatever...... Hmmm

 

[Boudica]

Yes. Depending on the type of account you have, a smaller business paying those percentage fees can add up. For large jobs in the thousands, it's better to get a check than run a credit card. Fee wise.

 

[Notarealsignguy]

The problem here is that the only alternative is credit cards and there is a 3% on them. Checks are fee free but unsecure. They need to do something about the credit card fees but they won't because the lawmakers make too much $$ from them.

It's crazy really. I think most small businesses fall around 20% net average? 2-3% just to conveniently collect money is a bit absurd. $1mil revenue is $20-30k in fees, thats not peanuts, at 20% net profit you're talking 10% of your annual take home. Unless math is off?

 

[CanuckSigns]

The problem here is that the only alternative is credit cards and there is a 3% on them. Checks are fee free but unsecure. They need to do something about the credit card fees but they won't because the lawmakers make too much $$ from them.

What about EFTs for paying your vendors, or is that not a thinf is the usa?

 

[Notarealsignguy]

We have some vendors that pay us via ACH. For us, it's easier to just pop the invoices in QuickBooks and run checks once a week and it wraps up all of the accounting. If we paid by CC or etf, it seems like we'd have another step or 2, input invoice, make payment through another system and then have to catch it on the bank feed to clear it in QB. Then there's an accounting lag unless you have a full time admin/bookkeeper.

 

[SignMeUpGraphics]

Weird... nearly everything over here is done by direct bank transfer with zero fees. Sure you can use a CC if you want, but the merchant will get hit with a fee however it's legal to pass that onto the purchaser here too.
We don't do a lot of card transactions but our worst case fee is 1.2% on Visa/Master and managed to negotiate 0.95% on AmEx.
They are certainly ripping you guys off

 

[Texas_Signmaker]

That they are.. But we do it to ourselves. We have credit card rewards that pay up to 2% on purchases. I have a business and personal card from BofA that pays 2.65% on everything unlimited and I try to run everything I can on those. ACH is not popular here. Some processors will let you run eChecks for 1%.

 

[Boudica]

That they are.. But we do it to ourselves. We have credit card rewards that pay up to 2% on purchases. I have a business and personal card from BofA that pays 2.65% on everything unlimited and I try to run everything I can on those. ACH is not popular here. Some processors will let you run eChecks for 1%.

They are making mobile check deposits a lot easier. You can get business accounts at a credit union, and you get that for no fee. There's a limit of check deposits per day though. Ideal for a few large checks vs bank card charge fees.

 

[binki]

I don't like to have my CC saved by any place but at least in the USA we are protected from fraud with a CC. Also, if the vendor charges a fee for CC use then I am not interested. As far as ACH I enter it each time and don't save that info if I can help it. It only takes one hack to ruin your day.

As far as checks go, I only write a few a month. It was 4, now 3. One is a local vendor, I suppose I could go down and do a credit card but that takes time from my day as well as gasoline that costs a fortune here in SoCal. The other 2 are public utilities that are bastards with ACH payments so I am not interested in giving them my bank info. They can process my check. It won't be stolen from their lockbox. The one that was stolen was from one of the multi-box mailboxes to save the post office time in delivery but leads to lots of fraud.

 

[Stacey K]

I prefer to receive checks but hate writing them out. If I send you a check you have about 7 days to cash it before I cancel it. I don't have a check register, I just use my online banking to send money, everything comes out right away, you always know your balance. Except when some idiot doesn't cash your check for 6 weeks...that's what I hate about checks.

 

[Notarealsignguy]

I prefer to receive checks but hate writing them out. If I send you a check you have about 7 days to cash it before I cancel it. I don't have a check register, I just use my online banking to send money, everything comes out right away, you always know your balance. Except when some idiot doesn't cash your check for 6 weeks...that's what I hate about checks.

My wife likes sitting on checks. It drives me and the people who wrote them crazy.

 

[Boudica]

I prefer to receive checks but hate writing them out. If I send you a check you have about 7 days to cash it before I cancel it. I don't have a check register, I just use my online banking to send money, everything comes out right away, you always know your balance. Except when some idiot doesn't cash your check for 6 weeks...that's what I hate about checks.

I'm pretty bad about sitting on checks. I'm getting better though! especially now that I can deposit them with my phone. I don't have to make a trip to the bank.

 

[Stacey K]

I wrote my BF a check for $300 and the plumber for $360. Six weeks later neither were cashed.

One thing I hate is I only have a PO box and the post office opens after I get to work and closes before I leave. They are also closed for an hour over lunch so I usually only go on Fridays.