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Bad Paper, Volume 1 - Check Schemes

NCJ Number
B K Lary; J T Wells
Date Published
0 pages
This first in a three-film training series for bank personnel describes six common confidence schemes used to defraud banks or their customers and how to detect and prevent them.
A convicted confidence man discusses actual schemes and tactics he used to net over $2 million from banks and offers prevention advice. In addition, security and supervisory personnel from seven financial institutions provide commentary and analyze these schemes and their perpetrators in detail. The four schemes used against banks include the split deposit or cash back scheme, in which the con man makes a large deposit with bad checks and receives a smaller amount back in cash; the deposit ticket or short change fraud, in which the con man attempts to confuse the teller about the amount of money he has received; the faked appearance scam, in which the con man dressed as a doctor hurriedly tries to cash a bad paycheck; and the officer OK scam, in which a bank officer's bona fide endorsement on a small valid check is obtained and then used to provide credibility for a forged endorsement on a much larger, bad check. The two scams directed against customers, particularly the elderly or more gullible, include the pigeon drop and the bank examiner scam. In the first, victims are asked to put up 'good faith' money in exchange for a share in a much larger sum of 'found' money. In the second, victims are led to believe that withdrawals from their accounts are official attempts to catch a dishonest teller. The importance of the teller in detecting and preventing such frauds through attention to customers' actions and strict adherence to established bank policy and procedure is emphasized throughout. Accompanied by training manual.