The Fraud Thread

[pendragon1998]

I've been thinking lately that a thread outlining some of the common techniques criminals are using to defraud people. A lot of business we do as coin collectors is succeptible to fraud and if you don't keep up with the latest schemes, you are only putting yourself at more risk.

 

Here are two oldies but ... well, not goodies.

 

 

Jun 01, 2006 -- Be cautious of cashier's checks

 

Phony cashier’s checks and money orders is a growing problem. The number of fake cashier’s checks more than tripled in the past five years and grew more than 50 percent in the past year. It’s possible because of the high quality printers out there today. They’re so good that even people in the banking business think they’re real.

Complete Article at Clarkhoward.com:

 

 

Mar 17, 2006 -- Fake Cashier's Checks that Cost You

 

This scam is popular on Craigslist, but seems easy to perpetrate on us as well. The scammer buys an item from you and then wants to pay with a cashier's check. They tell you that the check was already drafted and ask you to simply return the difference with the item. The seller (you) takes the check into a bank and it deposits just fine - the bank doesn't say anything, so the seller waits a few days and then ships the item and a check for the difference, which can be substantial. Two to three weeks later, the bank notifies you that the check bounced and you're suddenly liable for the full amount of the bounced check. Unfortunately, you're now out for both your now-unpaid-for item, the amount of the check you returned to the scammer, and all of your bank fees.

Complete Article at Clarkhoward.com:

 

 

If anyone else wants to contribute their own knowledge of the multitude of scams out there, please inform the rest of us.

[WoodenJefferson]

 

Counterfeiters produce millions of dollars worth of fake currency every year, subsequently costing businesses millions when they try to deposit them in their bank accounts. The paper (actually a fabric) used in most currency cannot be replicated or reproduced, even by the best counterfeiters. The counterfeit detection pen contains a specially formulated chemical (iodine solution) that tests the material used to make the currency in question. Simply mark the bill anywhere, and the mark will instantly change color. If the mark stays clear or a slight yellow discoloration, the bill is genuine. If the mark turns black or brown, it has reacted with the starch in wood-based paper proclaiming the bill is a counterfeit! The mark on genuine currency will disappear within 24-48 hours; therefore you are not illegally defacing the bill. The pen works on most major currencies in circulation, with the exception of Canadian currency.

 

Book'em Danno

[cpm9ball]

Michael, if anyone believes that line that "the cashier's check was already written" is just asking for it. Banks, now, will not draft a cashier's check unless it has the name of the payee on it. If you don't believe me, go to your bank, hand them $100 and ask them to issue a cashier's check with the "Pay To" left blank. They won't do it.

 

Chris

 

PS. If your bank will do it, then I would suggest that you change banks. Their security sucks!

[jgrinz]

Cashiers Check they will not do .. BANK Personal Money Orders they will leave blank

[TomB]

Here is a US Postal Service web page that lists all known and current fraudulent USPS money orders.