In this consumer alert we will discuss checking account fraud and the

different ways you can protect yourself from being taken by scams and con

artists.

Fraudulent Telemarkerters and con-artists have found another way to seal

your money. Consumers across the country are complaining about

unauthorized automatic debits (withdrawals) from their checking accounts.

Beware, if a caller asks for your checking account number, or other printed

information signed by you on your account. Do as you would with your

credit card numbers - do not give out checking account information over the

phone or by mail unless you initiate the call or are familiar with the

company.

saying you have won a free prize or can qualify for a major credit card,

regardless of past credit problems. If you respond to the offer, often times

the telemarketer asked you right away, “Do you have a checking account:”

If you say “yes”, the telemarketer will explain the offer. If you say “No,”

they may tell you that you are ineligible for the offer. If the telemarketer

goes on to explain the offer, usually it sounds too good to pass up. Near the

end of the sales pitch, the telemarketer will craftily ask you to read the

numbers at the bottom of your check. Sometimes they may not tell you why

this information is needed. Other times, they may tell you that the

information will help to ensure that you qualify for the offer. Once the

telemarketer has your checking account information, it is put on a “demand

draft” and sent to the bank for payment. The draft contains your name,

account number, and the amount, but does not require your signature. When

your bank receives the draft, the stated amount is withdrawn from your

account and paid to the telemarketer’s bank. You may not know that this has

occurred until you receive your next bank statement.

detect and could expose you to large financial losses. The following

suggestions may help you avoid becoming a victim.

Do not give your checking account number or other account information

over the phone in response to solicitations from unknown people or

businesses.

If anyone asked for your checking account member or account information,

ask them why they need it.

Beware of offers that sound too good to be true, especially offers that

require your checking account number or other account information . Ask to

review the company’s offer in writing before you agree to a purchase.

your checking account without your knowledge or permission, or the

amount is more than you authorized, contact your bank immediately.

Depending on the timing and circumstances, you may be able to get your

money back..

fraudulent checking account scam report it to the Attorney General Office’s

Consumer Protection Unit and the local Police Department. You may also

file complaints with your local Postmaster (the Postal Inspection Service

investigates mail fraud claims).