Scams, Swindles And Cons

Occasionally, instead of the bank being the target of fraud, it is our customers who are "taken" by unscrupulous characters. If you are aware of some of the most common schemes, you can assist your customers in protecting themselves.

The Phony FBI Investigation
The conversation between your customer and the very well dressed, professional looking young man might go like this...

"Hello, Mrs. Customer. My name is Larry Liar from the FBI. Here is my badge and identification. "We've noticed that you use the Main Street branch of the ABC bank to do your banking. "We need your help.

"We've been asked by the bank to do some official investigating, because they suspect that someone inside is embezzling/stealing money. Will you assist us? Yes? Good.

"Please don't discuss what we're investigating with anyone in the branch. One of them may be an accomplice. What we need you to do is withdraw $3,000 from your account at the first window inside the bank-right by the door. Then-see this $3,000?-these are specially marked bills. What we'll do is exchange these for the $3,000 you get from the teller, and then you can go right back in and redeposit these bills at the same teller's window. Just explain to the teller that you changed your mind. By tracing the bills, we'll be able to ascertain whether or not the cash has been tampered with."Having carried out all first instructions, at the end of the scam Mrs. Customer will arrive at the teller's window to "redeposit" the money, and find the envelope she has been given is filled with newspaper cut to the size of currency.

The "agent's" badge and picture I.D. in a black, leather, "official" holder can be purchased through catalogs that deal with "look-alike" identification. It's hard to tell from the real thing.

The Pigeon Drop
In many cases, this scam involves women con artists. One "finds" cash on the street, often between $10,000 and $20,000, and offers to share her lucky discovery with two other people, both of whom are supposedly complete strangers to her. One, however, is actually her accomplice, and the other is the intended victim.

Before splitting the booty, each is asked to put up "good faith" money.

Believe it or not, it works.

They will first go to the bank of the victim, who will go in and withdraw cash, most times between $1,000 and $3,000, bring it out and give it to the first con artist to hold-usually in a bag of some sort- along with the "found" money.

Then they go to the financial institution of the "other stranger", routinely by taxi. He (or she) goes into the bank to get their portion of the good faith money, and the finder of the cash and the victim wait outside in the cab, with the bag of money.

The wait gets longer.

Finally, the con artist who originally found the cash tells the victim something to the effect that, "I trust you completely, so you hold the bag with your money and all the rest of the "found" money, and I'll go see what is keeping the other person."

The bank being used by the con artists almost always has two doors- front and back. The con artist goes in through the front door, and out the back to meet their partner. And then they disappear.
By the time the victim, after an even longer wait still sitting in the cab, becomes wise to the fact they aren't coming back, and checks the bag-it will prove to be full of newspaper cut to currency size. The switch has taken place during the trip to the second bank. The victim really has been left "holding the bag."

"Hard Luck" Cons

"I can't believe it! My wallet was stolen right out of my pocket! Can you possibly loan me $10 to get home? I'll gladly give you my name, address and telephone number."

"Please help me! I was just attacked, and robbed and nearly raped. I just need cab fare to get to the nearest police station."

"I ran away from home last week, and I'm out of money, and some guy wants me to become a prostitute for him. Can you possibly help me? I don't want to do that, but I need some money for bus fare-I want to go back home."

"My baby is sick and needs medicine. Please, can you help me?"

"Professionals" who deal in these phony begging schemes make a very good living. Some brag that they make over $1,000 a week!

The "I-Can't-Cash-It" Check Scam
The customer is approached on leaving the bank by a stranger who says, "Excuse me-I notice you have an account at this bank. They won't open one for me because my former husband (or wife as the case may be) messed our credit rating up so badly I may never be able to straighten it out!

"In the meantime, I have this $9,000 settlement check from my lawyer, and I can't cash it!

"If you'll let me deposit it into your account, I'll let you write me a check for $7,000 and let you keep $2,000 for your trouble. I just need enough to buy a car to get to Phoenix (Miami-California-Boston-Wherever...) to my new job by next Monday, and I can't negotiate the check!

"It's worth it to me to pay you that much for your trouble, because I'm desperate. I have to get there by Monday or the job will be gone!"

If accommodated, the con artist will take the check and immediately negotiate it. The $7,000 is gone-usually by the next business day, if the customer's bank has next day availability. (And many do!)The check-always drawn on a financial institution out of state-will be charged back-in the amount of $9,000-about five days later marked "Account Closed", or "Refer To Maker". It was never good to begin with.

(Editor's note: These are only some of the scams that have come to our attention. We'll continue with more in the next issue. Also, see the Q&A page for a major scam also presently active nation-wide.

Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 3, 1/96