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  Policies & Procedures , How to Avoid Checking Account Fraud When Accepting Payment from Vacation Renters  
 
     
How to Avoid Checking Account Fraud When Accepting Payment from Vacation Renters

Things to consider when sending a deposit refund by check.
 

On the few occasions that you may have to keep a portion of the deposit, you might want to consider sending bank certified funds. If you couldn't trust these renters with your vacation home, why should you trust them with your bank account information?

WASHINGTON (10/18/04)--Checking account scams are on the rise, and some scammers now are using sophisticated and cheap technology to print checks (Delawareonline.com: The News Journal Oct. 4).

Scammers take advantage of a banking practice that allows companies to write unsigned, paper checks on a consumer's behalf for one-time transactions such as last-minute bill payments or purchases from telemarketers. Using unsigned checks and automated withdrawals, crooks can process thousands of bogus payment requests.

Law enforcement officials say crooks find it surprisingly easy to convince consumers to give checking account numbers over the phone or Internet. Officials suspect thieves also have obtained account numbers from unscrupulous mail-order suppliers.

Thousands of consumers also have been tricked into giving out account information by responding to "phishing" e-mails that appear to come from financial institutions or from Web sites like eBay or PayPal.

Consumers should keep a close watch over their checking accounts to detect and report fraud promptly: Check accounts online regularly and review monthly statements. Some financial institutions only allow consumers 30 days from the statement date to dispute an unauthorized check. Be even more protective about checking accounts than credit card information. Federal laws allow more protection for consumers disputing credit card transactions.

Think twice about using checks to pay unknown vendors. When in doubt, use a credit card.

© Christine Karpinski 2006



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