Posted by Korey Humphreys on 9/17/11 12:11pm
Msg #397746

Smartphone fraud occurs at closing. . .

Found this article today in the Lowell Sun (a local newspaper) and wanted to share it with you all. Thought it was worth sharing:

http://www.lowellsun.com/todaysheadlines/ci_18917600

Reply by Eileen McRorey on 9/17/11 12:57pm
Msg #397747

OMG!!! How come I never think of these things? Guess my mindset isn't the same.... thank goodness.

Reply by Susan Fischer on 9/17/11 1:45pm
Msg #397751

That's just awful, even though I don't understand the scam -

Eileen, I'm with you - criminal minds are weak minds, and good folks just don't think in those twisted ways.

Reply by Moneyman/TX on 9/17/11 1:54pm
Msg #397752

Susie - the scam is that they get paid twice befoe

the anyone realizes what has happened.

They have already "cashed" the check when they hand it back and ask for an immediate wire transfer. As the article points out, most people don't think of putting a stop payment on a check they have in their hand since we are used to having to go to the bank to actually deposit it.

New apps on smartphones allow people to "deposit" with just a scanned/photo of the check with all the info on it. I think I've seen commercials from Chase Bank (maybe a few others as well) about the new apps.

Agreed, "twisted ways."

Reply by BrendaTx on 9/18/11 12:30am
Msg #397784

I have deposited like this...I question a couple of things

about this article. It almost sounds like an urban legend...not saying that it is...but, a couple of things.

1-The check cleared that fast? I would say that the only way that can happen is if the title company and the crook's bank accounts were in the same bank. Otherwise, I will stake a $5 bill that the bank had a three to five day hold on those funds.

2-Why would someone who was known to that title company pull something like that? How was that a gain? They discovered it very quickly and it made the seller look like an idiot.

I would love to know if the lawyer who wrote the article got that tale of a Florida guy doing that from an email.

I have not googled it...I might soft in the head tonight, but those things jumped out at me.

Reply by ReneeK_MI on 9/18/11 5:59am
Msg #397790

Same situation was posted by FLTA

It then made the rounds through a few title ins forums, maybe a month ago? In the FLTA scenario, the scam didn't work - but easily could have, which is why they put the warning out. The scam was caught in their instance by the settlement agent's funding software, which prevented a wire from being ordered until the check was voided; check was found to be already deposited by the software when they attempted to void it, and wire was never sent.

The whole thing freaked me out because, like others, I'd have never thought of this happening, either. Devious minds think up devious things far more easily than we who aren't so devious. As far as why a "known" person would do this ... perhaps they weren't really "known" as well as assumed, and/or had a very convenient little vacation planned?

Reply by BrendaTx on 9/18/11 10:15am
Msg #397804

Thanks, Renee'...my fact checker went off.

It's still buzzing a little. I googled around when I read the article because it sounds a lot like one of those "warnings" I get from someone who knows someone in the local police dept. There is always a scenario that could be true, but it isn't.

Been trying to find a source, but there are just references to FLTA. FLTA's newsletter actually references it in a manner less than I would expect from them, "Also on the Title Forum, you can check out the latest check fraud scam..." and the post on the title forum is:

"Scenario

"A couple left their closing with a check for their proceeds. A couple of hours later, they returned to the branch with the check and asked for a wire instead. The closer voided the check and processed the wire. Unfortunately, they had used their smart phone and deposited the check before returning it to the branch."

It is hard to say why they thought that they would be able to get away with this. Perhaps they live in another country. Regardless, we need to keep this in mind should a customer return with a check and ask for a wire!"

The most interesting thing about the story is that a couple of versions are reported time and time again verbatim across the internet without citing FLTA, or vaguely referring to it. FLTA's cite is vague, too.

I'm not arguing about this! I have become more than a fact checker and critical thinker. I'm jaded and suspicious and wonder what the motivation behind articles are. In this instance, Positive Pay, a for profit software company against check fraud, gets quite a few recommendations.

The bottom line is that a bank or a title company would be a joke if the funds were stolen in this manner.

Great reading and interesting check fraud concept.

Reply by Glenn Strickler on 9/17/11 3:09pm
Msg #397761

Thanks for posting ...

I would have never thought about this otherwise.

Reply by BrendaTx on 9/18/11 12:22am
Msg #397783

Hey, Korey...good to see you. :) n/m