Fraud: How do fake check scams typically operate?
Compliance
Asked by Question Bot08/Oct/20131 answer
1 Answer
F
Faisal Khan
Answered 08/Oct/2013
It is quite difficult these days to counterfeit cheques in general, but nonetheless it is done. What scammers do mostly is to take advantage of the system loop holes that exist in processing software of banks and/or the processing of payments at businesses.
Most banks have corrected this. However, many Credit Unions and other smaller banks still have not. Give them an out-of-state cheque and it will be credit to your account (the bank assumes funds will be cleared), until it is actually cleared from the origin bank.
Much of the scamming starts with you selling something on Craigslist (product), in the hope that someone will provide you with a cheque. A lot can be worked upon from there, once you are in possession of a cheque.
Most banks have corrected this. However, many Credit Unions and other smaller banks still have not. Give them an out-of-state cheque and it will be credit to your account (the bank assumes funds will be cleared), until it is actually cleared from the origin bank.
Much of the scamming starts with you selling something on Craigslist (product), in the hope that someone will provide you with a cheque. A lot can be worked upon from there, once you are in possession of a cheque.