> Untitled Document

Ombudsman warns of fraudulent cheque scam
7 January 2005 - Business Owner

Business owners should be aware of a cheque scam being perpetrated by customers who purchase goods fraudulently.

The Ombudsman for Banking Services (OBS) is receiving complaints from people who sold goods only to discover that the supposed deposit into their account was in fact a stolen cheque and not cash.
Manager of investigations for the OBS, Advocate John Simpson, says: "We have received a number of complaints on this issue and we would like to warn the public what to look out for."

The scam can be perpetrated in numerous ways. Simpson says one way is when the seller advertises their goods for sale and the thief offers to buy the goods and deposits the selling price in cash into the seller's account. The thief promises to fax the deposit slip as proof as proof of payment, but actually deposits a stolen or forged cheque into the seller's account instead of the promised cash.

A deposit slip is then forged to reflect that the deposit was made in cash and is faxed to the seller. The seller thinks the deposit has been made in cash and hands over the goods to the purchaser. The seller only realises later that he or she has been conned when the "cash" deposit is reversed by the bank.

The thief can also deposit a stolen cheque for a larger amount than the purchase price and asks the seller to transfer the balance back to him. The OBS has some useful tips for business owners:

  • Never accept a deposit slip as proof of payment, rather obtain written verification from your bank before handing over any goods.

  • Where cheques are deposited, ensure they are legitimate. Request special clearance on cheque deposits.

  • Do not hand over any goods until the cheque is fully paid.

  • Be wary of buyers offering to pay the purchase price without having seen the goods, or who send their drivers to pick up the goods.




    •