Archive for the ‘fraud’ Tag

How The Bank Fraud Scam Works

Tuesday, May 30th, 2017

How The Bank Fraud Scam Works    

   This file will not deal with conventional “check-bouncing.”  There are a number of files available on this subject, and it’s really all been said before.  Before we get into the heart of this scam, however, I would like to clear up one area that seems to have been neglected or erroneously addressed in other checking g-philes.

      Most stores now employ some form of check-verification system; these often go by the name “Telecheck” or something similar.  Stores employing this system will almost never hassle you for a credit card.  The device itself looks very similar to a credit card verifier (small plastic box with a keypad); these however, lack the swipe-slot (obviously).  The cashier will enter your SS# along with the check data and, if appropriate, Telecheck will issue a verification code.  Now here is the important part – TELECHECK HAS NO IDEA HOW MUCH MONEY IS IN THE ACCOUNT, OR EVEN IF THE ACCOUNT IS CURRENTLY ACTIVE.
    What they do know is if you’ve passed a bad check on them in the past. From the time you pass your first bad check, you have between three and four weeks before they get the bad check back and get your name and info. into their computer.  So, you want to do what you’re going to do and do it fast.
  It should be noted that the above info is not relative to the scam described below.

    Now, on with the file- Read the rest of this entry »