scam

[Guest Ray Stone]

hey guys, I was approached by a guy wanting to send me a check and then I cash it and send him money. There was a scam like this last year or so. What was the catch to the scam? Was it depositing the check in your account and then it bounced? Just curious.

[Guest LeoWalker]

Yes, by the time the check bounces he will already have the "change" and be gone with your money.

[Guest Ray Stone]

what if I cash the check at his bank, not at mine?

[Guest LeoWalker]

I'm not completely sure why you'd want to expose yourself to the liability...but, yes, if you cash the check on his bank then it'll either clear or not, immediately. They'll take your finger print but that's only for fraud purposes in protection of their account holder. If it doesn't clear, then you can immediately give the check to the fraud department, if you so chose.

[+ honcho]

Even if the check were good, I'm not sure I personally would want to get involved.

 

Terms like money-laundering, conspiracy, racketeering come to mind.

[Guest Ray Stone]

thanks... good point.

[+ g56whiz]

This recovering banker wants to remind you that in all things pertaining to banking, if it doesn't make common sense it makes no sense at all.

 

In this case the bank on which the check is drawn, can refuse to pay the check for any number of reasons of which insufficient funds is only one. The payor can claim the check was lost or stolen or that the signature is forged and ask that the funds be restored into his account and that the check be returned through the system in which case your account will be charged for the amount of the check together with a hefty fee no doubt. Moreover, the bank on which the check is drawn is unlikely to cash it for you unless it knows you which most often means you'll have to have an account with them that holds enough funds to cover that check incase they have to later dishonor it.

 

And if you think this is an overbearing belt and suspenders approach to avoiding losses, you're right. Moreover it's rather ironic that these same belt and suspender folks are still mass mailing credit cards to the unwashed without doing any credit underwriting first.

[imrthr]

hey guys, I was approached by a guy wanting to send me a check and then I cash it and send him money. There was a scam like this last year or so. What was the catch to the scam? Was it depositing the check in your account and then it bounced? Just curious.

 

If the check is legit, why does he need you to get involved or to be the middle man?

[rvwnsd]

Escort as ATM

 

hey guys, I was approached by a guy wanting to send me a check and then I cash it and send him money. There was a scam like this last year or so. What was the catch to the scam? Was it depositing the check in your account and then it bounced? Just curious.

 

There are several flavors of this scam. In some cases, it involves sending a cashier's check for an amount in excess of the escort's fee while in others, like this one, it involves a personal check. There are a few reasons to run in the other direction when someone suggests this:

 

1) In the case of a cashier's check, it is probably a forgery, counterfeit, or stolen check. In that case, when (not if) the check is returned, you would be liable for making restitution and might be charged with bank fraud. That could carry a monetary fine, jail time, or both.

 

2) A personal check could bounce. As you stated, you could go to the "client's" institution and attempt to cash the check. While this would ascertain whether the account had sufficient funds to cover the check, it would not ascertain that the person who gave you the check was the owner of the account. If it is a stolen or fraudulent check, the institution would likely go after you. See #1 for the rest of the story.

 

3) If the check was really drawn on the client's account and he had sufficient funds to cover the check, he might be trying to launder money, to which you would be an unwitting accomplice. He might also be trying to get your real name and identification. You will be asked to present ID when you cash the check, so if the check is payable to your stage name you can't cash the check unless you endorse it using your stage name over to your given name. That's assuming the bank cashes second-endorsed checks. If your real name and ID are on the check, the "client" will have it as soon as he checks the image of the cleared check. And he will.

 

Stay away from schemes where someone wants you to play ATM.