Florida case shows risk of checking, credit card scams

Florida case shows risk of checking, credit card scams

No strategy to avoid check-cashing and credit card fraud is foolproof, unless a customer or business decides to deal in cash only. However, a cash-only approach would be highly outmoded and counterproductive in today's world.

At some point, a proprietor or cashier will see one of your checks or observe your credit card.

An eye-opener in this regard comes from Clearwater, Fla, where a woman who owns a fashion shop has been charged with depositing stolen checks and raiding her patrons' credit card accounts -- for the third time, no less. The Federal Trade Commission reports that billions of dollars of thievery takes place annually through these methods. The sum in the Clearwater case was a combined $17,000.

Business owners can establish trust with customers by posting or distributing tips on how to avoid check cashing and credit card theft.

From the Clearwater report, it's not clear how the proprietor obtained customers' checks to deposit in various accounts. Officials from the Oregon-based Northwest Community Credit Association (NCCA) say sophisticated scam artists often strive to create or forge phony checks simply by reproducing the account number, but their crime is made more simple when they get their hands on unused checks.

Basic advice is to hide, void or destroy any document that contains account information. In fact, the NCCA reports that thieves have learned to "wash" and reuse voided checks. That means a small paper shredder is worth the investment. Another option is to use a wash-proof magic marker to void a check and to block the account number. Entrepreneurs and cashiers may quickly hold a check up to the light to search for telltale signs, the same as they might do with $100 bills.

In terms of credit card fraud at a place of business, the Federal Trade Commission recommends such simple steps for customers as keeping an eye on the card during the transaction, and seeking the return of the card as quickly as possible. Business owners, in turn, can encourage cashiers to handle credit cards with efficiency.
If a customer reports fraud quickly to a credit card issuer, often they won't suffer a financial loss. This can be accomplished by saving receipts to compare with billing statements, opening bills promptly and reconciling account each month. According to the FTC, maximum liability under federal law is $50. Also, for the customer to inform the business of suspected fraud is a sensible way to avoid repeated phony transactions, and possibly to catch the criminal in the process, although an experienced scam artist probably won't go to the same location twice.

Article by Michael Thompson

Published: February 24,2023