Fraud - Be Aware

[smellyskelly]

Hi

Although this is not a new type of fraud, I was surprised to hear today it is still being perpetrated.

Perpetrator will obtain your bank details (bank, sort code, acc number and name) and will "manufacturer" a cheque using these details - not too difficult with current IT hardware freely available at low costs.

The cheque will be completed and signed then presented at one of many cheque cashing outlets in most major towns and cities.

These outlets generally issue the amount on the cheque (which is presented as a pay cheque with a fabricated pay slip) by calling the company to check these are an employee.

Prior to this they have used freely available electronics to tap into the victims phone line and divert the call - so when the cheque cashing office call they are diverted without knowledge to the offenders colleagues mobile or similar - who confirms they are employed by xyz ltd or similar....or similar.

Surprising ly they have managed to receive large sums of money - which is not identified until the company see their bank statement or the bank spots a problem with the cheque when it is presented.

To try and prevent this -

- think about where you have your bank details stored - or displayed you will be surprised!
- Thoroughly check your banking
- consider new customers offering to pay by bacs
- don't become paranoid, but it may be worth checking your phone line by calling it every so often.

In the current climate - frauds like this will only increase........

Be aware.

 

[MikeJ]

Have you any evidence this has ever happened?

 

[smellyskelly]

Yes, it has happened and on one occasion the bank even released the money against the cheque!

There is a current investigation in the west mids and also one in London.

This is simply a note to make businesses aware.

 

[deniser]

I am surprised that banks can't spot a fake cheque. Surely this wouldn't work as cheques have to come from a numbered series in a cheque book. The fraudsters wouldn't know which numbers to use.

 

[smellyskelly]

I am only passing on some info.

It has worked - it happened to a business which is owned by a friend of ours.

Banks do not check this sort of detail.

There was several attempts and only one where the bank released the money ( the cheque issuer has released the money more than once) But at over £1k at a time you cannot afford to ignore the possibility.

 

[Jenni384]

I am surprised that banks can't spot a fake cheque. Surely this wouldn't work as cheques have to come from a numbered series in a cheque book. The fraudsters wouldn't know which numbers to use.

I once heard that as long as the 'cheque' bears the right details (sort code, account number, bank address, account name etc) then technically the bank has to honour it. I don't believe it has to be on a cheque issued by the bank - strictly speaking any old bit of paper will do (though in practice these might not get accepted!).

Not sure how true this is but might be relevant. I know some accounting software lets you print cheques directly and I believe this stationery is from the software house not the bank, so suggests there may be some truth to it?

 

[deniser]

Interesting thanks Jenni and Smellyskelly.

 

[ricardo_ortiz]

Must be careful this time.

 

[and180y]

Recently had an employee leave our employ for being less than honest.
We send final payment by cheque then suffer days of harranging at the cheque is made out to the "wrong name". We say you were employed by us as ABC so that is who we pay. Employee says this is maiden name and they only have account in married name. To get rid of the problem we agree to issue a cheque in replacement and arrangements are made for it to be picked up.
By a stroke of luck after I had written the replacement cheque I logged into online banking to find that the cheque which couldn't be cashed had been cashed!!
The employee called to collect the replacement cheque and walked away with it smiling (it had been stopped).
How did employee cash the cheque. Well apparently you can just stroll in to the bank with a cheque and a marriage certificate showing both names and walk out with the cash!!! (this was not a recent marriage)