Easy check fraud technique draws scrutiny

[MadisonProgressive]

http://www.msnbc.msn.com/id/7914159/

Ever written a check? Your account could be targeted, too

By Bob Sullivan
Technology correspondent
MSNBC
Updated: 8:15 a.m. ET May 24, 2005

It would be music to any non-profit organization’s ears: an unexpected $1,000 donation. But the offer came with dirty strings attached, and the surprise donation to California-based Urban Age Institute was hardly a gift at all. Instead, it placed the organization right in the middle of an extensive — but elegantly simple — worldwide scam.

Within days, $10,000 worth of checks were written against the non-profit's accounts and cashed by a woman in Georgia. She in turn wired money to Nigeria. The incident left the organization's leaders wondering: Is it that easy to raid anyone's checking account? The answer, according to banking experts interviewed for this story, is yes.

Armed with just a checking account number and bank routing number, criminals can create checks at whim, experts and law enforcement authorities say. In fact, as the Urban Age Institute found out, at least one Internet site makes the process even easier. All the fraudulent checks drawn on the organization's checking account were printed and mailed by Qchex.com, a Web site whose stated aims are to make sending and e-mailing check payments easy for anyone connected to the Internet.

"The scope of the problem is potentially breathtaking," said Mary McNamara, who helps run the Urban Age Institute with her husband Gordon Feller.

[hvn_nbr_2]

1. Who knew it was so easy for crooks to rob you? n/t

[Dee625]

2. Figures

I've wondered about this for a while. Have you called a utility company or such lately to discuss your bill? They ask if you want to pay over the phone. If so, they have you read them your checking account number. Simple as that. I thought to myself that there is no security there.

Why?

They got rid of the PAPER.