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#1442656 - 09/14/10 05:33 PM CT Effort to Combat Check Frauds
Fraudman CFCI Offline
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CT teams up to combat fake-check scams
Today

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Connecticut regulators and check cashers are teaming with a national consumer protection organization to protect consumers against fake check scams.

The state banking and consumer departments, along with the Credit Union League of Connecticut, launched an education program for consumers, banks and credit unions aimed at thwarting the global scams that cost unwitting victims millions of dollars in losses annually.

The banks and credit unions participating in this effort will hand out a brochure created by the Consumer Federation of America, "Don't Become a Target," to every consumer who comes in to deposit checks or money orders of $1,000 or more or to withdraw $1,000 or more.

So far, 18 participating banks and credit unions include: Hartford Municipal Employees Federal Credit Union; Metropolitan District Employees Credit Union; MiddConn Federal Credit Union; Northwest Community Bank; and Essex Savings Bank.

"We are teaming up to take action against a troubling criminal trend and to help people avoid getting cheated out of their hard-earned money," Gov. M. Jodi Rell said in a statement about the effort.

In fake check scams, a consumer receives a genuine-looking check or money order for something and is asked to wire money somewhere in return, the consumer federation says. For instance, the check may be described as an "advance" on millions that the consumer has won in a sweepstakes or lottery.

The consumer is instructed to send money to pay the taxes and claim the rest of the prize. In another popular scenario, the consumer is recruited to work at home as a "mystery shopper" or processing payments for a company and is instructed to send money somewhere as part of the job.

No matter the story, the check or money order is phony, and when it bounces, the victim owes the money back to the financial institution where it was deposited or cashed. The average loss is $3,000 to $4,000.

Federal law gives consumers the right to access their funds quickly, usually within a day or two. But the consumer's financial institution can't tell if there is a problem with a check or money order until it goes through the system to the person or company that supposedly issued it. That can take weeks.

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#1442755 - 09/14/10 06:21 PM Re: CT Effort to Combat Check Frauds Fraudman CFCI
Georgia Plum
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I read about this somewhere but for the life of me can't find it now. It actually is a nationwide program going on right now, not just Connecticut.

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