Wire Transers

A recent article about scams and wire transfers caught my eye the other day.  Here are time facts from the article . . .

Rules governing wire transfers place a larger burden on account holders than laws on credit cards or debit card . . . . {the} bank says {the victim} may not have met required security requirements on his computer system — even though he has secured wireless, firewalls, anti-virus software and other protection — and so, the bank may not be liable to pay him back.

I get really frustrated when I see things like this.  Why is it that the banks can sit back and do nothing, and put all of the blame on the customer!?!?!  When do the banks have to stand up and say "There are things we could have done to stop this, so we are liable also."

Eight years . . .

Eight years ago this month my husband and I became victims of a counterfeit cashier's check scam when our bank told us that a cashier's check we received was good, clear, verified and that we would have no problems with it.  Off of that information, we went forward with a transaction.  One week later the bank contacted us to let us know that the check was counterfeit, and that WE were 100% liable for the money . . . even though they had told us it was good, clear and verified. 

It was this situation that brought us to create the website ScamVictimsUnited.com, where we warn people about scams, offer resources and advice, and allow people to talk with other victims on our message board.  In the first two years of our site being operational we helped stop over $2 million dollars from going into scams.

Now, you would think that eight years later things would have changed.  Some things have, but even today we see victims coming to our site who brought these checks to the bank and were told that they were good, clear or verified . . . sometimes by more than one bank employee . . . so the exact same situation that happened to us eight years ago is still happening to people today.

Until laws can be changed to hold the banks accountable for telling the customers that these checks are good, clear and verified and then later hold the bank customer liable when it comes back that they are NOT a true check, education is the best way we have to fight these scams.  

What can you do?  

Write to your law makers and tell them that you want to see banks held liable for releasing funds on checks that they have told customers are good, clear or verified, and then later reversed those words to hold the customer liable.  

Sign our petition to ask for stronger consumer protection laws.  If the banks are liable for the money lost, and not the customer, then they will change their practices and make SURE that every penny is accounted for before they release the money to the customer.

Contact your bank and ask them if you brought in a cashier's check for $4000, how long would it take to know you could use the money, with no worries about the check.  If their answer included terms like "clear", "good" or "verified' you may want to read the information we have on what these terms really mean, and then armed with that information you may want to speak to the bank manager about better education on counterfeit checks for his staff, or go and find a bank that already does understand these items and can therefore better protect you and your money.

Scams and Trying to Educate People

I had a former co-worker email me the other day and she told me she was reading her Homemade Simple Magazine, and saw my name in it.

While I was VERY happy to see this article about scams, since this helps to educate people to what is going on, I was disappointed to see that some of the facts were not accurate.  Here is a portion of the article that is speaking about how to verify the status of a cashier's check . . .

To find out a check’s status, call your bank twice (talk to two different workers in case one doesn't understand the process) to verify that the check has been fully processed. Otherwise you lose the money if the check is a fake.

This would not be accurate.  In the case of our story, I spoke with two different bank employees BEFORE I withdrew the money from the account, and both of them told me that the check was "good", "clear", "verified", "funds were available" and that I "had nothing to worry about".  Once we found out the check was counterfeit and were dealing with the bank's loss prevention department we asked them the same question, and we had two different people from THAT department tell us that "a cashier's check is verified as good within 24 hours".  These people in the loss prevention department knew what had happened to us, yet they were still giving us the same inaccurate information.

The ONLY real way to find out if the check is counterfeit or not is to call the bank that is listed on the check as the issuing bank.  Also, you cannot trust the phone number listed on the check.  The scammers have gotten smart and have started altering those also so that they go to one of the people within their group who will tell you that the check is good.  You need to do a Google search to find the official website of the issuing bank, or the Yellow Pages listing for that bank, and then call that phone number.

The advice from this article in regards to counterfeit cashier's checks would not save anyone from becoming a victim of these types of scams.  It is sad, because the point of the article was to show real world situations that the everyday person could become involved in, and how they can be aware and protect themselves from these scams.

It looks like we still have a LOT of education to do, especially to the people that are trying to help educate the average American.

Consumer Law & Policy Blog sees my point

I just got done reading the article at the Consumer Law and Policy Blog entitled How Chase Bank Almost Helped a Teenager Get Scammed.  This story points out exactly what we at Scam Victims United have been talking about since 2003.  The banks will tell people that the checks are "clear", "good" or "verified" but none of those words mean anything about the customer's protection from risk when these checks come back as counterfeit.  The bank will still hold the customer liable for the entire amount.


I think this is wrong.  When the bank employee tells you that the check is "clear", "good" or "verified" that should be the same as a verbal contract, and if something should come up later with that same check the BANK should hold some, if not all, of the liability.  Isn't that the job of the bank, to verify these checks?  


This is why we have started the petition at http://www.change.org/petitions/view/create_scam_education_and_awareness_programs asking for a change in these laws and better consumer protection against theses scams.  We have also gone out to local high schools to give presentations to the students in order to educate them about these scams, and the banking terms.  We need to give not only our teens, but everyone, the tools that they need to protect themselves from these scams.

Shawn Mosch
Co-Founder of ScamVictimsUnited.com
There is strength in numbers!

Find us on Twitter, Facebook and more through http://www.retaggr.com/page/ShawnMosch

Support Scam Victims United by shopping at http://shopittous.blogspot.com/

Sign our petition for Scam Education and Awareness Programs http://www.change.org/petitions/view/create_scam_education_and_awareness_programs

Prevent overdraft loans

This is some great information from AFFIL that I had to share with you.

Starting on August 15, your bank cannot charge you overdraft loans unless you authorize them to. This is great news - no more surprise $34 charges for overdrawing your account by $1! Instead, transactions will be declined at no cost if you don't have enough money in your account.

But, your bank or credit union will probably try to convince you to opt-in to overdraft "protection." In 2008, banks made almost $24 billion on overdraft loans, and they're going to miss this cash. To keep it coming, they may try to convince you to enroll in overdraft protection which will trigger a huge fee for each small overdraft. This is a bad deal for you, but a great deal for them.

It's easy to protect yourself -- just do nothing! Don't opt-in to overdraft protection, and make sure your friends and family don't either.

If you think you are likely to overdraw your account, talk to your bank or credit union about another option.

Sign up for a line of credit
Link your checking account to your savings account or credit card
Read more about these options from the Center for Responsible Lending (and check out their funny overdraft video while you're at it).

Your bank may already be asking you to opt-in to an overdraft program. Don't fall for it. Just do nothing when they ask you to opt-in.

Protect the Consumer

Our friends at Americans for Fairness in Lending asked me to share some great information with you about a new site that they are involved with called ProtectTheConsumer.org and their recent webinar with Professor Elisabeth Warren about financial reform. If you missed the webinar, you can listen to it here.

Professor Warren emphasized, we can’t win this fight without everyone’s help. The big banks will always be able to outspend consumers, so it’s up to us to make sure our voices are heard as the Senate considers financial reform legislation. Use your words to make a difference by taking action today!

Giving People a Voice: ShameTheBanks.org

Here is a press release from another site that has a similar mission as ours . . . giving people a voice and a place to share their stories.

On Monday, March 22nd Shamethebanks.org was launched to give a voice to the millions of American's fighting the banking system to save their homes, lower the interest on a credit card, advocate for student loan rights.

ShameTheBanks.org is a non-commercial website designed to give hope and empowerment to American families. The first release of the website is targeted on helping Homeowners by providing information and knowledge gleaned from multiple sources accessible in one central location. Further releases will target information regarding credit cards and student loans.

It is clear that Wall Street, the Banks, and the Loan Servicers are not concerned about the American Family: they've taken tax dollar bailouts to lobby and persuade elected officials for their own end, reward themselves with bonuses and salaries while Main Street families struggle to remain afloat.

The first release of ShameTheBanks.org carries a message to Congress and the Banking Institutions on the continued lack of assistance to millions of Americans suffering from the troubled economy and a Mortgage Modification Program that still has yet to help the 4 - 6 million Americans that it was proposed to assist.

According to the latest report by Treasury, just over 170,000 mortgages have been permanently modified. The banks and servicers who participated in the program have offered 1,354,350 homeowners trial modifications - a far cry from six million and a mere 12 percent of those have been converted to permanent modifications. The rest? Who knows?

It is estimated that homeowners have been bilked out of close to $4 billion in this way. A technique paid for by taxpayers. If they do get a modification, it can be nothing more than a difference of $20. The banks call that a modification and collect more taxpayer money.

The Congressional Budget Office reported that HAMP won't even spend the full $50 billion it had allocated to helping homeowners. It will only spend $20 billion. That's $5 billion less than the government spent saving the auto industry and only 3 percent of what it spent saving the banks.

With a mission to provide accurate, up to date information regarding Banking and Congressional issues ShameTheBanks.org does not share personal information with third parties. Instead, it offers a community where struggling families can take refuge and find relief (not shame or blame) by reading stories of real people and empowering themselves with resources.

Submitting stories is welcomed and encouraged. Visitors simply register and receive instructions on submitting their story.


About ShameTheBanks.org

ShameTheBanks.org was developed by Huffington Post blogger Richard Zombeck to bring national attention to the modification crisis that continues to plague millions of Americans. Richard is joined by writers with firsthand experience with Loan Modification, Credit Card and Student Loans. After repeated unsuccessful attempts with Congress, Government Agencies, the Banks and many other resources, this group is fed up and instead of giving up, created a community of support and empowerment.

Contact:
Richard Zombeck
ShameTheBanks.org
www.shamethebanks.org

Financial Reform 101 with Prof. Elizabeth Warren

I was asked by my friends at AFFIL to share this information with you.

Americans for Financial Reform invites you to a special online event!

Financial Reform 101 with Prof. Elizabeth Warren

Tuesday, April 6
4:00 – 4:45 pm Eastern time

AFR is hosting this special discussion with Professor Elizabeth Warren and AFR Director Heather Booth for the general public. It will focus on where we stand in the movement for financial reform, and how everyday citizens can get involved in the fight to rein in the big banks and get the economy back on track. We hope you can join us and promote the webinar far and wide!

You and your members can sign up here:

https://www1.gotomeeting.com/register/482147880

* Find out about reform efforts in Congress—including the Senate bill currently being debated, and the House bill which passed in December
* Learn why we need a Consumer Financial Protection Agency to protect us from abusive financial products
* Ask Professor Warren and Heather Booth your question about financial reform
* Hear about ways to join the fight around the country and online

Space is limited so sign up now!

Special thanks to the National Consumer Law Center for providing the webinar software. Please contact Sarah Byrnes, Sally Brzozowski or Chris Bowers with questions.

ShameTheBanks.org

Today we have a guest blog from Denise Richardson of www.Givemebackmycredit.com

Remember when you were a kid and you did something naughty? Maybe it wasn’t as strictly against the rules as something like stealing—maybe you picked your neighbor’s flowers without permission, or you chalked a rude word on the sidewalk. Your mother would say, “Shame on you!” And you would feel ashamed, somewhere inside, that your mother did not think well of you. Shame, coming from someone you loved and respected, caused you to change your ways. If only it worked that way with banks!

There’s a new website called $hameTheBanks.org, and that’s exactly what they’re trying to do. The organizers –and the folks who post their stories on the site –are pointing a big fat finger at banks saying “Shame on you!” to the big corporations that banks have become. Whether it will cause banks to change their ways remains to be seen, but it can certainly provide a forum for homeowners and consumers to discuss what’s really going on with their mortgages, their credit, and their financial futures.

ShameTheBanks.org is a great non-commercial location for consumers to share their stories about fighting the banking system, lowering their interest rates, or advocating for student loan rights. It is also a resource, providing homeowners with mortgage and loan information drawn from across the Internet and beyond, all in one location.

Founder (and Huff Post blogger) Richard Zombeck had this to say about his new site:

It is clear that Wall Street, the banks, and the loan servicers are not concerned about the American family. They've taken tax dollar bailouts to lobby and persuade elected officials for their own end, reward themselves with bonuses and salaries while Main Street families struggle to remain afloat.

It is his hope that $hameTheBanks.org will provide accurate, up to date information regarding banking and congressional issues, like how much has been allocated by the Congressional Budget Office to help homeowners ($50 billion) and how much has actually been spent on that cause (not even half that much). Did you know that only TWELVE PERCENT of the almost 1.5 million homeowners who received trial loan modifications later received permanent ones?

Twelve percent is barely a drop in the bucket.

So stop by $hameTheBanks.org and tell your story. You will surely find a community of support and empowerment, not one of shame or blame on the consumer. Help raise a cry of “Shame on you!” to the banking industry and find information and, perhaps, some refuge and relief.

Denise Richardson can be reached at www.Givemebackmycredit.com

What are they thinking!?!?!?

A fellow scam fighter alerted me to an article this past week about a new feature in mobile banking.  Soon you will be able to take a photo of a check with your phone and then get that check deposited into your banking account.  My first thought was that the banks need to fix the problems and issues that they already have with check deposits before they create a whole new way for people to deposit their checks.

The article says

Banks have already offered smartphone applications that let customers check  balances, transfer funds and make payments.

Yes, they do.  I have even heard some banks say that they can send you an email to alert you when a check has cleared.  If you read this blog on a regular basis, you will know that I have a big problem with the banks using the term "cleared" to customers.  Our bank told us that our cashier's check was "cleared" and then one week later they called us to tell us that it was counterfeit.

Back to the article that I was talking about.  It goes on to explain how this new technology would work.

A bank customer takes a photo of the front of the check and  the back of the check that has been signed by the customer. The photo gets sent  to the bank through its mobile application. In most cases, funds are in the  customers account immediately.

Wait a minute . . . immediately!?!?!  So now if someone were to take a picture of a cashier's check, they could start using that money right away?  What about waiting for the check to be verified at a legitimate check?  What about protecting the banking customer's funds by holding the check until it has passed through the system?  Oh wait, they don't do that now with paper checks so why would they do it with electronic image checks.

Here is the ONLY positive side I could see about this.  There are some people that have taken a cashier's check that they wanted verified into the bank and have been arrested for presenting a counterfeit check.  With this technology they could send a picture of the check into the bank instead of actually going into a branch location.  Of course, if the check is found to be counterfeit the bank could probably send the police to the person's house to arrest them for trying to pass a counterfeit check.

More banks are expected to add the feature, especially as consumers demand 24  hour banking.

I would think that those same customers who are demanding 24 hour banking would also demand that the bank is looking out for their best interest.  How about giving us accurate information on when the money from a check is truly ours to use and spend without any worries?  How about telling the customer that the funds are available, but it could take 10 business days or more for the check to be verified as legitimate.  That is what this bank customer demands.

It starts tomorrow! The Call for Financial Reform!

From http://ourfinancialsecurity.org/2010/02/action-center-tell-congress-to-hold-banks-accountable/

Tell Congress to Hold Banks Accountable

Join Americans for Financial Reform and our allies around the country in our first National Senate Call-in Week, March 1 – 4, 2010.

AFR is joined in this effort by our large coalition of organizations, small businesses, and individuals.

As financial reform legislation moves through the Senate, we are asking our Senators to:

• Crack down on irresponsible and reckless behavior by big Wall Street banks and hold them accountable;
• Protect consumers by policing unfair and deceptive practices by credit card companies, mortgage companies, and predatory lenders, and create a strong and independent consumer financial protection agency to get the job done well;
• Close the loopholes that allow secret and risky ‘shadow market’ deals where big banks enjoy the winnings of gambling with our money, and then expect us to pay when they lose.

If you’d like to be a part of this week of action, download the flier (pdf) and contact information by clicking here.

To RSVP for this event on Facebook, click here.

Tell the FDIC to rein in Banks' reckless behavior

From Americans for Fairness in Lending

We know that the greedy, reckless behavior of banks and Wall Street titans created an economic meltdown that has cost millions of American jobs and trillions of dollars in lost wealth. Wall Street bankers continue to gamble with our money, reward themselves with huge bonuses when they win, and take billions in taxpayer bailouts when they lose. The system is rigged: heads they win, tails we lose.The FDIC wants to help change this. But they need to hear from us.

A while back, AFFIL members flooded the Federal Reserve Board with comments about why credit cards needed to be reformed. Together with other activists we generated over 60,000 comments -- and the Fed issued new rules. Later, Congress followed suit and passed the Credit CARD Act which will go into effect this Monday.

Now, we can send the same strong message by sending comments to another government agency, the FDIC. The FDIC---which insures bank deposits---is trying to do something about reckless Wall Street gambling.

The FDIC wants banks that hand out big bonuses for risky behavior to pay higher insurance premiums. Just as a reckless driver pays more for auto insurance, these banks would pay more if they insist on rewarding recklessness. It's only common sense.

The FDIC is taking public comments on the proposed new rule - but the deadline to submit a comment is today, February 18. And banks are pushing hard against it. Many of the comments so far are from bankers. The FDIC needs to hear from regular Americans who got stuck with the bill when these bankers wrecked the economy. Can you let the FDIC know you support the new rule by submitting a comment?

The FDIC takes these public comments very seriously, but usually only receives them from industry insiders. But this is a rule that would affect all of us. The FDIC needs to know that regular folks are watching and that we want accountability for the risky behavior that cost taxpayers billions of dollars.

Go to Americans for Fairness in Lending to have your voice heard

Cyber - Education/Awareness

From http://calendar.bollearningconnect.com/main.php?view=event&eventid=1260215055941
You offer internet banking because it is cost effective for the bank and convenient for the customer.

And when you complete a risk assessment, you review E-SIGN rules and logon credentials and disclosures you give your customers. But have you evaluated your customer awareness program? The FFIEC authentication guidance issued several years ago tells us "Financial institutions have made, and should continue to make, efforts to educate their customers. Because customer awareness is a key defense against fraud and identity theft, financial institutions should evaluate their consumer education efforts to determine if additional steps are necessary." It goes on to say that management should both implement a customer awareness program and evaluate its effectiveness periodically.

Banks are being sued by their customers when a loss is incurred via internet banking. While some banks look to Reg E for guidance, it isn't always there, and it won't apply when your customer isn't a consumer. Have you taught your customers how to act and react when there is a threat? In this webinar we will discuss:


What should be in your customer awareness program?

How to educate customers about phishing;

What you need to do when a phishing attack occurs;

Is mobile banking safer than using a PC?

Are customers required to practice safe surfing?

What is safe surfing?

Is multifactor authentication "required" for all customers?

What is a strong password, and how often should it be changed?

And much more.

About the speaker:

Andy Zavoina Mr. Andy Zavoina, CRCM, is a consultant with the Glia Group, best known for its involvement with BankersOnline.com.

Andy has been in finance and banking for 22 years. Over 20 years were with a holding company with two Central Texas community banks that had $534 million in assets, 89 branches spanning Texas and nearly 500 ATMs. After starting in loan workouts, Mr. Zavoina has been a consumer, commercial and real estate lender and managed those departments as well as being the banks first Webmaster. He was responsible for compliance- management, -auditing, and -training for both banks.

Andy is a past Chairman of the American Bankers Association's Compliance Executive Committee. He was the 2003 recipient of the American Bankers Association's Distinguished Service Award for his involvement and accomplishments in the field of regulatory
compliance management. He currently serves on the Editorial Advisory Board for the ABA's Compliance Magazine, Compliance Action magazine, is a member of the ABA's Compliance School Board and is a BankersOnline Guru. He also served on the
Texas Bankers Association's Compliance Committee.

He is a graduate of the ABA National Commercial Lending School, National Compliance and National Graduate Compliance School and is a Certified Regulatory Compliance Manager with the Institute of Certified Bankers. He has written numerous articles and
lectured on compliance, the use of the Internet and technology as a tool, as well as compliance in cyberspace to local, state and national associations. Internet policies and other compliance related programs are made available on his personal Web site.

Bank of America

Are you one of the millions of Americans who would love to tell the big banks what you think of their policies and procedures? Now is your chance!

Tomorrow a group from the PICO National Network will be meeting with Bank Of America executives for a face to face conversation about the problems that they have caused for so many people. They need your help . . . if you have a Bank of America story, go to http://action.seiu.org/page/s/bofameeting to submit your story. The more stories that they have, the more that they can try to hold Bank of America accountable for.

Is there a banker in the house?

because I just got this from Banker's Online . . .

Paperless Fed - A Game Changer for Financial Institutions
Soon the Federal Reserve will be all electronic when it comes to processing checks. No longer will the Federal receive paper cash letters or send financial institutions their daily in-clearing items. The same applies to returned items. It will not be long before the Federal Reserve will make an announcement (very similar to ACH tape decision made in 1993) informing financial institutions that all check related transactions will be transmitted electronically. If your institution is unable to receive your daily files electronically, you will need to designate a processor or correspondent institution to receive your items on your behalf.

This program will address the legal, regulatory, technical and operational impacts of the Fed's elimination of all but one Check Processing Center including but not limited to:

The impact on Funds Availability and bank disclosures (with one processing center, all checks become local checks)
The impact on return items (paper and electronic)
Operational and technical impact on financial institutions that are not image capable
Forward Cash Letters
Return Cash Letters
Presentment by the Federal Reserve and Other financial institutions
Transportation Costs
Federal Reserve Processing Fees
What happens to same day settlement?
What are the processing and other considerations of Non-Cash Items (Collection Items and Foreign Checks)?
What do you do with Bonds, Coupons and Securities?
Bank Float Schedules?

http://calendar.bollearningconnect.com/main.php?view=event&eventid=1262627344036

Here is my question . . . will this help to stop more counterfeit cashier's check scams? In the past, what I have been told is that the reason that the banks do not find out that the check is counterfeit for a week or more is because the paper check still has to go through all of the normal processing channels . . . go to the correct clearing house . . . but if it is all done electronically, wouldn't that speed up that process? And if that is so, wouldn't they be able to catch that these checks are counterfeit sooner? (and if so, how much sooner?)

Scam fighting - 2010

As 2009 comes to a close and we enter into 2010 I wanted to share the New Year’s Resolution that we have at Scam Victims United . . . to bring scam education and awareness to people across the country.

One of the ways that we plan to do this is with events called Scam Jam. These events are the brainchild of Chuck Whitlock an investigative reporter, author and speaker. If you have ever been to a Home and Garden Show or Wedding Expo, imagine that same experience and setting focusing on scams and fraud. There are presentations, workshops and speakers on various topics such as

ID Theft
Internet Scams
Investment Fraud
Health Care Scams
Bank Fraud
Elder Fraud
Charity Scams
Mortgage Fraud
Phishing Scams
Credit Card and Check Schemes
Contractor Fraud
Food/Supplement Fraud
Mail Fraud

Presenters include local media personalities sharing their best investigative reporting stories that expose scams, law enforcement groups, lawyers and legal experts, and even former scam victims sharing their story of victimization to recovery. Beyond the workshops and presentations, people attending a Scam Jam can interact with Consumer Protection groups in the Exhibitors Room. These professionals can assist them with their scam and fraud related questions, and offer then resources to assist them recovery efforts. You may even be able to purchase one of Chuck Whitlock’s investigative books that exposes scams or books written by other presenters.

Scam Jam is a one stop shop for education and resources on scams, fraud and consumer protection.

We are currently scheduling dates for Scam Jam events for 2010. If your school, business or company would like to host a Scam Jam at your facility, or if you are a professional in the area of scam fighting and consumer protection that would like to be a part of a Scam Jam in your area, please contact us.


Shawn Mosch
Co-Founder of ScamVictimsUnited.com
There is strength in numbers!

Find us on Twitter, Facebook and more through
http://www.retaggr.com/page/ShawnMosch

Support Scam Victims United by shopping at
http://shopittous.blogspot.com/

Detecting counterfeit checks

In my searching around on the internet for information on scams, stories of scams in the news I came across a story at http://www.americanbanker.com/btn_issues/22_3/-374033-1.html written by Mike Fenton of Parascript. In the article he says

Automatic systems for signature verification can successfully rely on a shared image archive and improve customer service and satisfaction by enabling banks and retailers to proactively inform customers of potential fraud. Similarly, check stock verification software can be used in a shared image archive environment to protect financial institutions against the fastest-growing source of fraudulent activity surrounding checks today, responsible for 28 percent of all check-related losses in banks - counterfeit checks.

What I want to know is if this works just for personal checks, or if this system also works for counterfeit cashier's checks.

Here is some information from their site.

http://www.parascript.com/newsroom2/press_full.cfm?ObjectID=587
Parascript Expands Fraud Detection Capabilities with Check Stock Verification Software

Boulder, CO – May 18, 2004– Parascript, LLC, an industry leader in recognition software, announced today the release of CheckStockXpert™, an anti-fraud software used to detect counterfeit checks. This new software complements Parascript’s check recognition and signature verification products to give banks and financial institutions a powerful defense against multiple types of fraud.

The American Bankers Association reports that attempted check fraud in banks nationwide surpassed $4.3 billion in 2002, and continues to be a major concern as criminals gain access to more sophisticated equipment and develop new tactics to attack institutions with weak defenses. This newest addition to Parascript’s anti-fraud product suite will help banks and financial institutions automatically detect suspect checks passing through the system. The full suite of products will address altered and counterfeit checks as well as random and skilled forgery.

“Parascript is committed to applying our advanced pattern recognition technology to all facets of the growing problem of check fraud,” said Mike Fenton, Parascript’s vice president of Total Recognition Solutions. “First with CheckPlus® andSignatureXpert®, and now with CheckStockXpert, Parascript is setting the pace for enhancing and streamlining fraud detection. As we have in the past, we will continue to advance our technology to combat any and all fraudulent activity against financial institutions, retailers and their customers.”

CheckStockXpert uses advanced pattern recognition to verify the full image of a check as well as preprinted objects on a check including headers of check number, date, payee, dollar amount, dollar sign, memo, payor block and payor bank field. This software scrutinizes the placement of each item and its relative distances between pairs of blocks, allowing banks to immediately identify even the slightest variations of a check. Multiplemethods of verification—including quantitative analysis, pattern recognition, analytical and geometrical analysis and neural networks—further increase accuracy. Asa result, banks and financial institutions can automatically detect copies or imitations of checks passing through the system.

Parascript’s three-pronged defense puts a stop to even the most sophisticated check-writing criminals.

CheckPlus, Parascript’s hallmark check recognition software, already used by leading financial institutions captures multiple fields on a check, including payee line, check number, dollar amount and date. Having this key information helps enhance positive pay or other fraud detection applications. Parascript’s signature verification software, SignatureXpert, uses the most advanced pattern recognition technology to detect random and skilled signature forgery. These two software products combined with CheckStockXpert help banks and financial institutions build a solid defense against all types of fraud.

Parascript’s suite of anti-fraud products is immediately available. More information is available at www.parascript.com.

About Parascript, LLC

Parascript’s Total Recognition® technology converts paper-based information into computer-usable data. It is the first complete technology that recognizes all character types — cursive, handprint and machine print — on all forms. Its unique capabilities allow organizations using forms to capture customer information to dramatically reduce their data entry expenses. With Total Recognition technology, companies can turn handwritten and print data, including legacy data, into electronic information that can be used to power web-based offerings and other marketing initiatives. Total Recognition technology is available via a number of channels: as software development kits, through Parascript’s on-line services, through onsite custom solutions, and from Parascript’s partners.

Phishing scams hitting hard

From http://www.annarbor.com/news/community-driven-credit-union-says-customers-falling-victim-to-phishing-scam/

The Community Driven Credit Union in Pittsfield Township has frozen the bank accounts of 20 to 30 of its customers in recent days after they provided sensitive information to suspected scam artists.

The phishing scam - involving e-mails and text messages - appears to be hitting Washtenaw County hard since last week.

Many people have reported receiving the messages, which warn them their accounts have been frozen. They're directed to call a number and are then prompted to provide bank and debit card information.

The majority of the messages appear to reference the Community Driven Credit Union. Kevin Finneran, president and CEO of the credit union, said even his wife and daughter received the text messages.

The scam also appears to be impacting the Chelsea State Bank. Michigan State Police Sgt. Tony Cuevas said today at least 3 people have reported similar scams involving the Chelsea bank.

One man said he received an automated message that his bank account was frozen, and when he called, he was directed to enter his 16-digit debit card number, Cuevas said.

On Tuesday, the president of the Ypsilanti Area Federal Credit Union said the credit union has heard from at least 50 customers who received suspicious messages.

Finneran said his credit union has talked to 50 to 60 customers, and 20 to 30 of them provided their banking information by computer or phone to the scam artists. Their accounts were frozen, and new cards are being issued.

Finneran said the bulk of those who received the text messages appear to be Sprint customers. He said the credit union has spoken to the Pittsfield Township Police Department and state Attorney General's office, and also is spreading the word about the scam to help customers avoid being victimized.

"It probably started last Thursday or Friday," Finneran said of the calls. "If people provided information, we're immediately taking steps to secure their accounts. We're also doing everything we can to make people aware."

Barrie Kiser, marketing manager for the credit union, said the e-mail can appear convincing because it has a screen shot of the credit union's home banking system. But the address is wrong, and the information it requests to log in also is different.

Officials at the banks stressed this week that they never gather information from ttheir customers via text or e-mail, so customers should never respond to such messages.

Anyone who received the messages and provided information should immediately contact their bank or credit union and local police department.

The Anti-Phishing Working Group also offers some advice on what to do if you've been scammed and how to report it.

Check Fraud: Protecting Your Bank and Its Customers

From http://calendar.bollearningconnect.com/main.php?view=event&eventid=1256146442184

Many of the scams are obvious, but many are presented in such a way that the would-be victim (your customer) is more easily tricked into believing the claims of the fraud artist.

Each presentment of a fraudulent check presents potential problems for 1) the bank of first deposit, 2) the customer presenting the check, and 3) the paying bank. Knowing how to detect and reject bogus checks can protect both your bank and your customers. Knowing how to handle fraudulent checks that make it "under the radar" can save your bank from significant losses.

WHY?
This program is designed to help your bank recognize the signs of fraudulent check activity. Trained bank personnel can help save gullible customers from themselves by preventing the checks from being deposited. Keeping the customer out of trouble means avoiding problems for your bank, too. Responding appropriately when a fraudulent check is presented for payment or has been charged back to your bank can minimize the losses your bank will suffer.

CONTENT
Upon completion of the program participants will understand:


how Regulation CC helps make counterfeit check fraud "profitable"

how common check fraud scams work

how customer behavior can "red flag" a check scam

physical clues of counterfeit checks

the case for check verification

the arguments against verification

fatal errors in check verification

when a hold can be placed, and for how long

the "reasonable cause" exception hold

why holds often aren't enough

counterfeits and the "midnight deadline"

how to handle late returns

how local clearinghouse rules may affect you

what NOT to tell a depositor about check clearing

what you MUST try to make customers understand

what to do when fraud is suspected

why customer education is your most effective tool

WHO?
The program is designed for teller supervisors and trainers, customer contact personnel, and anyone involved in your fraudulent check stop-loss efforts.

Vocabulary Lesson - Clear

Quite a while back, I wrote a "vocabulary lesson" about cashier's checks.

I wanted to continue on this to show why I believe the wording used by the banking industry is so misleading and why it is so easy for so many people to become victims of counterfeit cashier's check scams.

So let's say you receive a cashier's check from someone and you are concerned if it is a valid check or not. You want to receive the payment you are entitled to, and you do not want to end up liable for money from a bad check. This is the case with many people who become victims of counterfeit cashier's check scams. Many of them do not know how to make sure that a check is legitimate, so they bring it to their bank. They trust that the people who work with forms of currency every day will know how to make sure that this check is legitimate.

If the bank teller tells you that "the check will be clear in 24 hours" what does that really mean, and why is that confusing to the banking customer? Let's take a look at the definition of the word clear.

free from blemishes; unhampered by restriction or limitation; unencumbered by debts or charges; free from obstruction

"clear." Merriam-Webster Online Dictionary. 2009.
Merriam-Webster Online. 25 October 2009
http://www.merriam-webster.com/dictionary/clear

Banking: collection of funds on which a check is drawn, and payment of those funds to the holder of the check

"clear" Business Dictionaries from AllBusiness.com. 2009.
http://www.allbusiness.com/glossaries/clear/4949892-1.html

From reading these definitions one would think that when the bank tells you that an item, such as a cashier's check, is "clear" that would mean that you are free to use that money with no worry . . . it should be unhampered by restrictions and funds should have been collected from the bank on which the check was drawn according to the definitions I found online from reliable sources. So then why is it that banking employees will tell their customers that the check is "clear" in 24 hours, but then contact them a week later to say that the check was found to be counterfeit? You cannot un-ring a bell. If it is clear one day, it should still be clear a week later.

Maybe the real problem is not the word "clear" but the fact that it takes on average 7 - 10 business days for a check to go through the entire clearing process, but many bank's train their employees to tell people that cashier's checks are "clear" in 24 hours. If it is a legitimate cashier's check, then there would be no problems since it would be drawn against funds of the bank itself, but these checks are counterfeit and they are very good counterfeits, so good that they fool bank employees and bank managers on a daily basis.

So to make the vocabulary fit the situation, wouldn't it be better for bank employees to inform their customers that "it could take over 10 days for the check to clear". I know that the bank that we are currently with does this because I asked them before I opened an account with them. Test your bank out. Go in and ask them if you brought in a cashier's check how long would it take for it to clear. If they tell you 24 hours, you might want to rethink who you are trusting with your money.


Shawn Mosch
Co-Founder of ScamVictimsUnited.com
There is strength in numbers!

Find us on Twitter, Facebook and more through
http://www.retaggr.com/page/ShawnMosch

Support Scam Victims United by shopping at
http://shopittous.blogspot.com/