Forum Message

Topic: From Cheque and Credit Clearing Company website
Posted by: Robert Fish
Date/Time: 06/07/15 12:45:00

"How a cheque scam typically happens

In recent years organised gangs have targeted consumers selling high-value goods such as cars. So if you are selling a high-value item be particularly wary of accepting a cheque. If you do, you shouldn’t hand over the goods until you have certainty that the cheque funds will not be reclaimed from you (this happens at the end of the sixth working day after you have paid the cheque into your account).

Typically the gangs use stolen or counterfeit cheques. They will offer a cheque or banker’s draft for more than the price of the goods (as ever, anything that sounds too good to be true should set alarm bells ringing, but their excuse may sound plausible). You are then asked to transfer the amount of the overpayment either to them or to a third party three days after you have paid the cheque in when, it is claimed, the cheque will have cleared. Of course, the cheque or draft isn’t genuine and, whilst banks do all they can to spot and stop such cheques in the clearing process it is not until the end of the sixth working day after you have paid the cheque in that your bank, or you, can be sure that the cheque funds are certain and the cheque will not be returned unpaid to you.

Another type of cheque scam involves fraudsters altering a genuine cheque to add an extra name to a payee line – without any of the original detail being removed. Fraudsters target cheques where there is an unused space in the payee line, by adding “re”, “or”, “T/As” or “c/o” followed by a new name in the space left blank. This type of fraud means that there are no obvious signs of alteration, reinforcing the importance of drawing a line through all unused spaces when writing out a cheque. It is also important when writing a cheque to an individual, a business or an organisation to write their name in full, using a black or blue ballpoint or a pen with indelible ink. This will help prevent a fraudster making alterations to the original details and then opening an account in the altered beneficiary’s name, so that they can pay in the cheque and withdraw the funds."

So the answer to the question is 6 working days. Don't assume that when the credit first appears in your bank account and you start to earn interest (day 2), or even when you can withdraw the money (day 4), you are safe. The cheque can still bounce up to day 6.

Entire Thread
TopicDate PostedPosted By
Is this a scam on 08:25:00 Stewart Jones
   Re:Is this a scam on 08:54:00 Gerry Tan
   Re:Is this a scam on 09:24:00 Dave Robertson
      Re:Re:Is this a scam on 09:30:00 Andy Pease
         Re:Re:Re:Is this a scam on 12:30:00 Jonathan Bingham
            Re:Re:Re:Re:Is this a scam on 12:43:00 Richard Greenhough
            From Cheque and Credit Clearing Company website06/07/15 12:45:00 Robert Fish
            Re:Is this a scam on 12:47:00 John Whitworth
               Re:Re:Is this a scam on 13:52:00 Jonathan Bingham
                  Re:Re:Re:Is this a scam on 14:26:00 Huw Burford-Taylor
               Re:Re:Is this a scam on 13:55:00 Phil Kay
                  Re:Re:Re:Is this a scam on 14:50:00 Richard Greenhough
                  Re:Re:Re:Is this a scam on 14:54:00 Janine Jarvis
                     Re:Re:Re:Re:Is this a scam on 20:22:00 Stewart Jones

Forum Home