P&E Customers Need Help Too

Your professional and executive customer won't fall for an internet scam, right? Not necessarily. Here is a new twist on an old scam that the FBI is warning the public about. Here are two versions of a scam with the older version described first.

The scammer sends an email to a law firm, stating that they are overseas, but need representation. They have a debt owed them from a person in the U.S. The firm sends a retainer agreement and invoice to the scammer who responds and includes a check for payment. The check is for more than is owed and the excess is requested to be sent to a bank account in Korea, China, Ireland, or Canada. Naturally the check is bad but that isn't confirmed until after the excess funds are wired overseas.

In the new version, an ex-wife is on assignment is some Asian country and wants the law firm to collect funds due her in the divorce. The ex-husband is in the U.S. and the firm agrees to represent her. They contact the ex-husband who sends a certified check for the settlement. The firm cashes the check, retaining their portion and wiring the rest overseas to their client. That check is returned after the funds are wired.

The moral of the story is that when you have tellers and other staff trained to listen for keywords, to look for unusual transactions and warn customers in an effort to protect them from losses, don't draw the line at the consumer. Stay on guard to assist your professional and executive customers as well.

Scam Hits Bank of Chickamauga

In Georgia, the day after Christmas, many residents had a telephone call with a recorded voice telling them their ATM card had been restricted. They were given a telephone number to call and that is when the scammer completed his phishing expedition. He gathered confidential card and account data and was able to steal from these accounts. Many balances were completely zeroed out and more than one hundred accounts may have been affected. The calls all seemed to be made to a 375 prefix. Authorities suspect the scam originated overseas.

The article I reviewed noted that these transactions are not FDIC insured, and that "The Vice President of the Bank says each case will be dealt with individually. But in all likelihood, customers lost whatever was in their account. Chickamauga police and the F-B-I are also aware of this scam." Based on common thefts such as this, Regulation E should protect the consumers. I hope the bank realizes and reviews this. Commercial customers may suffer losses, depending on the banks policies and agreements as Regulation E addresses "consumers."