fradulent use of a check
Complaint
Paula Elliott
Country: United States
When I received our Jan. 2011 check statement, I noticed one check number referenced in two areas. Check Number 4062 was written on Jan. 10 for cash at our local bank. On Jan. 11, the same check number was shown run through Wal-mart. I was not shopping at any wal-mart or any online walmart on that day. I had no record of any purchase for Jan. 11th.
I phoned Shelly at my local bank in the bookkeeping dept. and she investigated the incident. Shelly told me that this has happened recently to other Sabine State Bank checking account clients.
We promptly filed a Written Statement of Unauthorized Debit (ACH) with the bank.
I phoned Shelly at my local bank in the bookkeeping dept. and she investigated the incident. Shelly told me that this has happened recently to other Sabine State Bank checking account clients.
We promptly filed a Written Statement of Unauthorized Debit (ACH) with the bank.
Comments
About the only other possibility would be if you had used some earlier check at Walmart, but it was processed delayed and with an error in the check number, but if you have ruled this out by balancing your check register against statements, then you must deal with protecting yourself from someone apparently forging checks using your account number, and possibly your name as well.
Since the suspect check number is within the range of check numbers you are currently using, that makes it very unlikely this is some account number error, and points to someone getting access to your account number in the recent past, and using it either to fraudulently authorize payment using those numbers on-line or by phone, or that they printed up a check with your account number, forged and passed it.
Your bank should be able to tell you how the charge was made, and might be able to produce a copy of the forged check either from their records, or obtained through Walmart's bank, but it appears that the charge was submitted through ACH, which is electronic, so there may not be any image of the originating document. The fake check might have been scanned by Walmart to collect the information, and then returned to the perpetrator.
No matter. That is Walmart's problem, since they failed to adequately verify legitimacy of the check or the identity of the paper hanger.
If someone has done this once, there is nothing to stop them from repeating the crime. It looks like your bank has already detected a similar pattern of fraud affecting other client accounts. That indicates that the perpetrator may be ramping up fraudulent activity.
You have filed a statement with your bank indicating that the charge is fraudulent. You now need to work with your bank to catch any additional fraudulent charges, let any remaining legitimate checks clear or make other arrangements to pay those creditors, and shut down this account.
As long as this account is open, you are vulnerable to risk of loss, and even though you are not legally responsible for payment of forged checks, it is likely to become an increased hassle.
In addition, on rejecting the fraudulent ACH charge, Walmart will probably send the fake "debt" to TRS Recovery for collection. TRS Recovery may try to collect it from you, or just try to run through the fraudulent charges again, which is a second reason to shut down this checking account, since you will have both a crook and a debt collector trying to drain it.
Contact your local police to file a check forgery and bank theft complaint, and get a copy of the police report to use along with copies of your bank fraud affidavit to dispute any attempt by Walmart or TRS Recovery to collect the fraudulent charge from you.
TRS Recovery has a poor record of compliance with federal debt collection and reporting law, perhaps because they are less well known than the big 3 CRAs, and directly connected to Telecheck, which acts as a credit reporting agency for checks and is able to block acceptance of checks at many merchants.
You can find many complaints on this and other sites, news report, and AG investigations (try the Florida AG site, for example), indicating a pattern of harassing or abusive calls, failing to resolve disputes, failing to validate alleged debt, or continuing to call and harass people who are being called in error.
If you have problems, contact an attorney sooner rather than later. A good consumer protection attorney can sue them, under FDCPA, FCRA or similar state laws, and both allow courts to award damages and attorney fees, so you can find attorneys to take such cases on contingency.
Your alternative is to be subjected to a program of harassment and threats, while they block your ability to use checks at many retailers, and maybe even block your ability to open checking accounts, where even if you finally resolve it, you will have basically worked for nothing to save them from having to pay your attorney fees.
You are better off letting an attorney do what they do for a living, at their expense.
You might try www.naca.net
In the future, do NOT use checks, check cards, or debit cards at on-line or retail merchants. Credit cards are far safer, and both easier to block, and less disruptive to other creditors.
Use checks only for payments to banks, utilities, rent, mortgages, or similar purposes. Use credit cards for all on-line or brick and mortar purchases. Do NOT use or activate debit or check cards, as like checks, they give thieves direct access to the cash in your checking account, possibly screwing up legitimate payments and credit, even if you eventually get your money back. Limit ATM cards with pins only to access at your own bank if possible.
Reduce your exposure to risk.