Tuesday, July 19, 2005

QChex Alert by the FDIC

Awhile back, I wrote a post on QChex, who is owned by Neovi Data Corporation, San Diego, California. QChex is a service that enables users to print checks, or send checks via an e-mail. On 7/12/05 the FDIC issued a warning on items issued by QChex.

Checks from QChex are being used in auction scams on sites, such as E-Bay and Craigslist. Criminals approach people selling items on these sites and offer a Qchex check as payment. Normally, the check is for over the amount of the purchase and the seller is asked to wire the excess amount back to the scam artist, who is in most instances, overseas. There are also instances of them being used to purchase high end items, such as electronics and jewelry. Again, the shipping destination for these items is normally overseas and the result is the same (worthless form of payment).

The QChex site has all sorts of legal disclaimers, including that they won't investigate anything.

The fraudulent items normally have valid account and routing numbers and could, in concept, verify through normal telephone (computerized) verification systems. If you insist on honoring, or attempt to negotiate one of these instruments, I would strongly recommend verifying the item with a live person at the bank and the owner (maker) of the account to ensure it is legititmate.

Comments from my original post indicate that people are also being arrested when presenting these items. I would recommend extreme caution when dealing with any item from Qchex. Quite frankly, they should be put out of business and an investigation should be conducted into this type of service to protect all of us.

For my earlier post and some interesting comments by readers go to:

Last, but not least, click on the title for the Alert from the FDIC.

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