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#69828 - 03/26/03 03:53 PM FDIC's scam alert
LoisLane Offline
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LoisLane
Joined: Oct 2001
Posts: 1,570
Wisteria Lane..
I saw the FDIC alert this morning about the counterfeit "official check" scam in which these countefeits are used to buy items on internet. Was anyone else surprised to see that part of the FDIC's advise
was to "review Federal Reserve Board Regulation CC - Funds Availability ....which provides guidelines and requirements concerning when deposited funds are to be available to bank customers"? Isn't this next-day availability one of the reasons this scam works so well?
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Security - PUBLIC
#69829 - 03/26/03 04:21 PM Re: FDIC's scam alert
WildTurkey Offline
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WildTurkey
Joined: Jan 2003
Posts: 921
Down South, USA
Quote:

.... Isn't this next-day availability one of the reasons this scam works so well?


Yes, and it seems to me that the requirement to make funds available next-day is now causing more problems than it solves, especially when many (most?) customers aren't aware that "available" funds aren't necessarily their's to keep.
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#69830 - 03/26/03 04:40 PM Re: FDIC's scam alert
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
What our friends at the FDIC might have done to be helpful is call our attention to the provision in Reg. CC that specifically says it doesn't require that we accept an item for deposit. I agree that, as presented, the reference to Regulation CC is actually counter-productive.
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#69831 - 03/26/03 05:06 PM Re: FDIC's scam alert
D C Offline
Junior Member
D C
Joined: Feb 2002
Posts: 43
The letter did provide some information that banks should pass on to their customers:

Quote:

Some banks have advised sellers to wait several days to ensure that the "official check" is paid by the drawn-upon bank before transferring the excess funds to the "buyer" or otherwise using the funds. Financial institutions should encourage their customers to verify the validity of official checks before releasing any merchandise, transferring funds to a third party or spending any of the proceeds.




Even though the bank may not be able to put a hold on the cashiers check, it can and should inform the customer that if the check comes back as a counterfeit, they will be liable for the loss.

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