Posted on Thursday, 21st February 2008 by R.J.
FreeMoneyFinance has a very interesting and very scary article today about telemarketers (and scammers in general) being able to draft your checking account without your authorization by using a little known, obscure method called “demand draft” or “remotely created check”.
A very good reason to be sure to always check your bank statements for any “weird” transactions.
If you’re a member of Wachovia bank, I’d be especially worried. Apparently, top Wachovia executives have been aware of this scam for a long time but have done nothing about it because they were making millions of dollars from the scammers.
From the article: Wachovia continued processing fraudulent transactions for that account and others, partly because the bank charged fraud artists a large fee every time a victim spotted a bogus transaction and demanded their money back. One company alone paid Wachovia about $1.5 million over 11 months, according to investigators.
“We are making a ton of money from them,” wrote Linda Pera, a Wachovia executive, in 2005 about a company that was later accused by federal prosecutors of helping steal up to $142 million.
Tags: bank fraud, bank of america, banking fraud, check drafting, checking account, demand draft remotely created check, drafting, remote check, scam, unauthorized check, wachovia, washington mutual
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