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Federal Reserve Bank
OF DALLAS
ROBERT

D. M c T E E R , J R .

P R E S ID E N T
AND

C H IE F

E X E C U T IV E

June 7, 1991

DALLAS, TEXAS 75222

O F F IC E R

Notice 91-47
TO:

The Chief Executive Officer of each
member bank and others concerned in
the Eleventh Federal Reserve District
SUBJECT
Possible Check Fraud
DETAILS

The Federal Bureau of Investigations has notified the Federal
Reserve of a possible ongoing telemarketing scheme involving drafts to
consumer checking accounts rather than charges to credit card accounts.
It
appears that new business accounts are being set up with banks by persons who
purport to own a business of some sort. Shortly after the accounts are
opened, large numbers of drafts are deposited, frequently just before closing
time when it may be more likely that tellers will not closely examine the
transaction. The drafts are encoded in magnetic ink. These businesses obtain
information regarding a consumer’s checking account by offering products or
services to consumers over the telephone. Based on the information, drafts
are issued against the checking accounts by the businesses which may be
unauthorized or in unauthorized amounts. The companies claim they have the
consumer’s authorization to process these drafts, but the banks have no
written authorization from their customers to charge the accounts, nor are the
drafts signed by the customer.
As soon as the funds are available, the
companies transfer the funds out of the account by wire. Banks may not
realize there are no authorizations on file for these unsigned drafts until
customers have received and examined their checking account statements.
Any information which may assist in identifying these schemes and
their operators should be reported to the nearest office of the Federal Bureau
of Investigations.
Information may also be submitted to Anthony Adamski,
Financial Institutions Fraud Unit, Federal Bureau of Investigations, Room
3841, J. Edgar Hoover Building, Washington, D.C. 20535.
MORE INFORMATION
For more information, please contact Anthony Adamski at (202) 3245594. For additional copies of this Bank’s notice, please contact the Public
Affairs Department at (214) 651-6289.
Sincerely yours,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas:
Dallas Office (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162,
Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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