Free Money!

I am constantly amazed at some of the methods employed by "less-than-honest" people who feel that ripping off a financial institution is perfectly OK. If a clerk in a supermarket gives them too much change, chances are the customer will make the correction. But if the loss in any transaction happens to be the bank or credit union, it's a sport, with the customer as the "winner". There is no guilty conscience at all to deal with.

Illustration - MBNA Europe Bank Ltd (being purchased by Bank of America Corp.) has had to come out and say they are cracking down on customers in the United Kingdom who are engaging in a practice known as "stoozing." "Stoozing" happens when the offer is made for transfer of funds to pay off another credit card. You can borrow enough on your new MBNA card to pay off another balance at 0% interest. "Stoozing" means instead of paying off another credit card, the customer puts the money in a bank account where it earns interest. At the end of the offer period, they pay back the original amount and keep the interest, without incurring any balance transfer charges. It's like free money!

Starting last month, MBNA started charging regular transfer charges on people's accounts who were caught "stoozing."

Fortunately, Security Officers are familiar with schemes dreamed up by folks intent on making some ready cash off the bank. For instance, the "borrowed" ATM card by the college roommate, with the quick report to the bank that the owner did not make that withdrawal, doesn't know when the card was stolen, etc. Then, when confronted with our camera results, suddenly remembers "loaning" the card to the roommate to use.

The check that was cashed with the forged signature - but when questions are asked, turns out the checkbook was in the dining room desk, and the payee and casher is the son/daughter/wife/husband...you get the picture.

We know as systems change, and we become more electronic, our losses will increase and be the result of new loopholes - and then, we'll become familiar with them and get a handle on them again.

Until the next change comes along.

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 10, 10/05