A wave of check and money order fraud seems to sweeping across the U.S. and the internet at large. Most of these scams involve people replying to classified ads for "check cashing"jobs. They are told they will be paid to deposit large checks into their bank account and then immediately wire the money via Western Union. Of course the check ends up being fraudulent and they're out the money that they wired. (Usually $5,000 or more.)

There is another type of fraudulent money order going around that I haven't seen information about online yet. Yesterday I received a suspicious check in payment for an expensive item I was selling on Ebay. It was printed out on normal paper, supposedly through a service called Qchex.com, and there seemed to be a typo on the check. (The dollar sign was printed over the last digit in the check number as seen.) The payer was "MDC Diamonds", and the digitized signature printed on the check was from a Daniel XXXXX. My customer was not a diamond dealer nor named Daniel. He was supposedly in Canada, though he emailed me this morning stating that he would like the item shipped to Germany. This alone would be a warning sign, even without the suspicous check. I then looked up the IP address in his email header. Sure enough, he was emailing me from Indonesia.

For those who may not be aware, Indonesia is currently the capital of the world for credit card scams and general internet payment fraud. Most auction sellers on Ebay will not ship to Indonesia on principle. It's just too risky. The mysterious thing about this is the number of people that seem to be involved in this particular scam that targeted me. The person doing the communication with potential targets is in Indonesia but there are apparently drop of points for the desired merchandise in Canada and Germany. I can't possible be the only one targeted by this group. They are probably going after a number of sellers on online auctions as well as internet stores.

I can't be sure if the check is completely forged, and depositing it will earn me the $20 bounced check fee, or if someone's qchex.com account was hacked, and thus the check might actually be cashable, though at some New York diamond merchant's expense. I'm betting that it is the former.

Other obvious points that anyone who buys or sells anyting on Ebay or Yahoo Auctions (or uses Citibank, Paypal, or Bank One) is that none of these businesses will ever send you an email in which they ask you to click on a link to verify your account. I probably get a forged email every day telling me that my account has been attacked and I need to click below and verify my personal information. Lately these emails have become more sophisticated and professional-looking. They can make it look like you are clicking on a link to Citibank, and hide the real URL that you are visiting. One of my relatives who buys on Ebay fell for this scam and clicked on a link from a scam email. She entered her username and password, but got suspicious when it asked for her mother's maiden name, credit card number, and social security number. She called me up right after that, and was luckily able to change her password before her account got hijacked. That incident really made me realize how easy it is to steal passwords from people online. Beware of fraudulent emails!

http://www.quinlanfaris.com/archives/000073.html

The answer to your question Scrub is Yes. Based on the evidence, one can conclude that they are aiding OR faciliating CRIMINALS to COMMIT CRIMES.

Qchex.com set up an account against my checking account and is manufacturing and mailing out fraudulant checks. 4k already cleared and many more cks bounced! Apparently, qchex allows anyone to set up an account with them and the only confirmation they do is to send an email.

I contacted qchex.com and neovi.com and told them them this account was fraudulantly set up against me. I spoke with 4-5 customer service reps who told me that they would do nothing since I wasn't their customer!!! They said that I had no right to stop them from creating and sending out their fraudulant checks because I didn't know the email that set up the accoutn. I told them I would give them my bank, the FBI, or the police contact information so they could confirm this fraud against me and to stop knowingly allowing this fraud against me to continue. They said they would do nothing until the police, FBI, or some authority made them stop.

One of the checks mailed out had the wrong address so it was returned to sender. This is how I confirmed that my husbands identity was stolen. The check had my cking account information and address and my husbands name on it. I was surprised my name was not there too.

My husband has an account with paypal and my name it not included, and our cking account secured the funds with paypal. Not sure if there is a connection based on other reports I see on ripoffreport.com.

I submitted a fraud afidavit with my bank, and 10 days later am wondering if I will ever see my 4k.

This qchex is definately using unethical business practices. I'm not a lawyer, but I think it should be illegal what they did to me.

Sheryl
Morgan Hill, California

http://www.ripoffreport.com/reports/ripoff140081.htm
U.S.A.

Person claiming to be a potential roommate.....from roommate.com sent a bogus check for $3500.00. She owed me $800.00 and asked me to send her travel agent (text"****o yes the qchex is for me

so please take it to the bank and then change it to cash and then take urs off and then send the rest down to me via western union money transfer .. remember u would send $1900 to my travel (mr Richard Adams ) and then u would send the rest down to me (miss Tonya Hansen) via westernunion.. i do hope u have very good reputation and no bad records at ur bank so that they can change the checks for u as soon as u take it there over the counter so that u can send it today and i can prepare all i have to and start planning on getting back thanks alot hugs, tonya)

The whole thing seemed weird so I deposited the check and asked the bank to investigate. Sure enough...bogus check.
BEWARE

Bobby
N Miami, Florida
U.S.A.

http://www.ripoffreport.com/reports/ripoff140081.htm

I've been doing some reading up on this stuff lately since I was approached in a similar manner by someone that wanted to purchase a necklace that I have for sale. I was asking $550 and the person sent me a check for $1670 and asked that I wire the money back, via Western Union.

The check was sent to me by Qchex.com, and I actually deposited it into my account last night (through an ATM). The check was issued by Vanderbilt University and looked totally legit. The buyer couldn't even use proper spelling or punctuation, so the fact that it's from Vanderbilt University raises a red flag, all by itself.

My questions is this; Is it possible that this check could clear my account and the funds be available? How can Qchex actually issue a check for payment if the funds aren't available? You would think that if the funds aren't available, they wouldn't want to do the leg work of paying for postage and actually stuffing it in an envelope.

I know some of you are talking about much larger amounts of money here, $1670 is nothing compared to some of the other scams I've heard of. How long will it be until I know if the check is good, a few days? I bank with Wachovia, they're slow. And, just BY CHANCE, if this check does clear, what now?

Thanks in advance,
Elisa
elisa@modularfords.com

Just an update;

Wachovia just locked all access to my account(s) and I'm currently under fraud investigation because of that check I deposited.

Get in touch with Detective Woolrey of Seattle Police Department. He may be able to tell you where to go and get help.

This is so unfortunate and has been going on for a long time now.


Scrub

__________________

We have used QChex for receiving payments for a couple of years. While I agree the site can be used for criminal activities, I would not place that blame on Qchex.

Setting up a Qchex account does lack a little in the way of security to determine the identity of the person or business that is initiating the check to be printed. However, your bank is as responsible for the fraud against you as Qchex.

The first time I took the Qchex into the bank to deposit, we had to provide our bank with information about the check and they actually put a 10 day hold on each check. The amount of the check was between $17.95 and $180.00 and they held the funds for 10 days. We have never had a Qchex dishonored, but we have had a couple returned for NSF.

Qchex does nothing to determine if the funds are available in the account. This is one drawback for our companies. We are moving towards a realtime electronic check processing system within the next month.

Blaming Qchex for people passing bad checks is a little like blaming the company that paves the roads for the accidents when a driver drives recklessly on those roads.

What I can not figure out for the life of me is why people would ever cash a check for someone and then wire some of the money back. A HUGE red flag should be flying anytime someone sends you a check for more then you expect and then ask for the difference to be wired back.

QChex an EASY avenue for CRIMINALS to carry on CHECK FRAUD......

Website Makes Bank Account Theft Easy
LAST UPDATE: 5/27/2005 9:22:10 AM

A website called Qchex is making it easy for criminals to drain your bank account. The site claims it can make sending and e-mailing check payments easy for anyone. But the Federal Reserve and Attorneys General in most states point out Qchex does very little to verify a user's identity. In fact, the website urges people to register their bank accounts so no one else can! And they say, quote, "Qchex does not endorse, guarantee, verify or investigate transactions undertaken by its members." Qchex is taking advantage of a legal loophole for banks, called Demand Drafts. Demand Drafts require no signature and are used by businesses who want to offer their customers to option of automatic withdraw of payments from a bank account. The only thing a person needs to print checks or send money from Qchex, is a working e-mail address and the information found on a check. That means paying your babysitter by check, would give him or her enough info to leave you penniless! Now, the Federal Reserve is calling for more restrictions on demand drafts. In the meantime, keep a close eye on your bank account. If you notice anything suspicious, report it immediately to your bank.

http://www.wkrc.com/heyhoward/story....2-111FD7DC7BDE

I had recently been involved with a check cashing opportunity (I thought) from a company named Senimatics UK. They were using a check writing service named "Qchex". Well you should know about this story. I was burned for $2,890.00 in BAD checks that my bank returned to me. Thank God I had the funds to pay back the bank.

When I contacted Qchex and complained to them that certain companies are using their services for fraudulant and illegal activities, they e-mailed me back with a computer generated response. I feel they are in cahoots with these bogus foreign companies. Read the following, and see how they deny all consumer protection responsibility.

What a bunch of CROOKS...THUGS...AND THIEVES.


Dear Nicholas
QCHEX is a check delivery service providing you the advantage & convenience of today's technology. You will be notified by email that a QCHEX has been sent to you. By clicking on the link in the body of the email, you will be able to view and print your check. As a recipient of a QCHEX, you can print your check using an inkjet or laserjet printer. We recommend that you use blank check security paper (VersaCheck Form 1000), and VersaInk (magnetic ink cartridges for inkjet printers), or MICR Toner (magnetic toner for laser jet printers). These supplies can be purchased at www.versacheck.com or at your local office supply store.

You may have received your QCHEX through the US Postal stream as opposed to through email. You just need to endorse this check and cash/deposit this check into your personal account.

It is important to understand that QCHEX is not a banking institution and cannot provide information regarding the checking account or the available funds in that checking account.

The authentication code that is printed on each QCHEX is an identification code in the QCHEX system- it does not validate the funds in the checking account.

To verify funds, you should contact the payor to discuss this point. You may also elect to contact the bank, located at the top-center of the check, to verify the account or availability of funds.

If you do not recognize the payor, or are not expecting a check of this nature, you may want to closely consider your actions. Depositing this check into your own account will expose your account information to the payor.

You must make your own independent determination regarding the statements and representations of the other party. Please visit www.QCHEX.com and select SECURITY and/or TERMS OF USE for additional tips on Fraud Prevention. These links are located at the bottom of the QCHEX home page.


We have listed some of the information we provide to our users to protect them from fraud below.


If you feel you are a victim of fraud please contact your local police department. Qchex has information that may be helpful in an investigation.
Then, have the local police dept fax to us on their dept letterhead a request for information, we can provide some information that may assist with an investigation.

They can fax their request to: 858-675-0579

FYI, following is information as to how the Qchex check delivery service works:

Qchex is a fast and convenient way to send and receive checks.

We provide a delivery service that is faster and less expensive than ground or air mail. However, many individuals and businesses accept checks via email, fax, phone or mail without practicing due diligence. Qchex is helpful in the event of fraud because we have electronic data that can be helpful in an investigation, but we have no way of verifying the information as our service is meant to encrypt data so that it is safe on the internet not to verify or guarantee funds.

As stated under "Security" at www.qchex.com "As a convenient online finance manager and check/bill delivery service Qchex does not endorse, guarantee, verify or investigate transactions undertaken by its Members."

and,

" What can you do to conduct safe transactions and prevent fraud?

Conduct transactions with people and companies that you know and/or can trust with your financial information. However, whether we use the Internet or conduct transactions face to face, there is no perfect security against dishonesty and deceptive practices.

Some steps that everyone can take to reduce the risk of fraud include making sure you:

are careful with new customers or businesses you've never dealt with before.

verify the authenticity of a check or credit card before providing services or shipping goods.

gather details before you deliver check or credit card information. E.g. make sure:

you know how to establish contact via telephone, fax and/or email if questions arise

you understand how the service will be provided

you know when and how the goods are to be delivered

the Merchant promptly provides order, shipment and tracking data"

Do not accept checks or any other form of payment from anyone asking you to send merchandise to Indonesia.

If you receive a check that is returned for any reason,
then you must undertake collection efforts on your own.

Only the Payee and Payor have sufficient knowledge to
understand, evaluate and complete their transactions.

Please see the first two paragraphs of the Qchex

Terms of Use here:

https://www.qchex.com/terms.asp

View our Security information here:

http://www.qchex.com/security.asp



--------------------------------------------------------------------------------
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-----Your Support Request-----
Request #: 148340
Name: Nicholas
Email:findme93@aol.com
Phone:724-555-1212
Subject: Fruadulant Checks
Issue Description:To whom it may concern: I received TWO fruadulant checks from Qchex. Tracking code #M8VV-65LV-G5R #M8VY-65LV-G5R The amounts were $1,257.00 and $1,633.00 Made payable to myself. Both these checks bounced and were sent back to me due to the account being closed. These checks were from a Dorath Cubbin Blake a supposed customer of Senimatics UK. This account has been closed and upon my further investigation, Senimatics UK is a scam company, that is using your service to pass phony checks, from stolen or bogus account numbers. We also suspect that Qchex is aware of this problem and may not be checking these account numbers to begin with. I do have the original checks in my possesion and am preparing to contact the FBI and further Authorities to see who will be responsible to reimburse the money I lost. Your response will be greatly appreciated.


Regretfuly,


Nicholas

Qchex is bad

Banking regulators issue check fraud warning
Qchex.com used for fraud, FDIC says; demand drafts tricky for consumers
By Bob Sullivan
Technology correspondent
MSNBC Updated: 6:54 p.m. ET July 13, 2005

Federal banking regulators have issued an alert about Qchex.com, a Web site that lets Web users initiate traditional paper check payments through e-mail. The alert follows an MSNBC.com story in May chronicling complaints about fraudsters using the service.

At Qchex.com, visitors can create checks that draw funds from nearly anyone's checking account -- as long as the user has the correct bank routing number and checking account number. Those numbers are found on the bottom of every check.

In its terms of service, Qchex says it does not attempt to verify the identity of its users.
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"Several financial institutions, retailers and consumers have reported receiving fraudulent checks issued via Qchex.com," the alert, issued Tuesday by the FDIC, says. The alert is titled "Fraudulent Checks Created Using Qchex.com."

"Financial institutions should be aware that some, but not all, checks created using this service may be fraudulent," it says.

Michael Benardo, manager of the Cyberfraud and Financial Crimes Section at the FDIC, said the alert was issued because there has been a steady increase in complaints about the service. But he said Qchex is used for legitimate check payments, too.

The agency plans to take no action against San Diego-based Qchex, he said. "We don't have any authority over the company because they are not a bank...they are not claiming to be a bank," he said.

The FDIC alert was sent specifically to bank executives, so they can be on the lookout for check fraud trends. But the alert is also public information and posted on the agency's Web site.

Qchex COO James Danforth, who said he was on vaction in France when reached on a cell phone, said he hadn't seen the alert and wasn't prepared to comment on it. But he defended the company's practices, saying any would-be criminal with a laser printer or Internet access could do what criminals are doing on his Web site -- print up fraudulent checks using account numbers and routing numbers.

"It's pretty easy to point the finger at Qchex because we are right there in front of everybody," he said. "But if you point the finger at us you need to point fingers at Hewlett-Packard for providing a printer, and at America Online for providing an Internet connection."

He declined to offer addition comment until he had seen the alert.

ign up before a criminal does
Melissa Ramont, vice president of operations at the San Diego Better Business Bureau, said that while it appears Qchex is not doing anything illegal, the Web site is facilitating fraud.

"Qchex is just making it too easy for this fraud to occur," she said. The agency has received 88 complaints against Qchex in the last three years, 17 in the last two months. The agency will soon issue its own warning about Qchex, she said.

On its Web site, Qchex says it does not verify account holders, and in fact, the site urges consumers to register their checking account numbers before they are claimed by a criminal.
Story continues below ↓ advertisement

“Registering your bank accounts with Qchex ensures no one else can setup or access your account numbers on the Qchex system,� the site advises in its instructions.


FREE VIDEO
Launch
• New twist on check fraud
May 24: As check writing declines, electronic bill paying is on the increase, creating a new twist to an old scam of check fraud. NBC’s Tom Costello reports.

Nightly News

Qchex payments are often as part of fraudulent schemes involving online auction sales, Ramont said. Auction winners who are criminals sign up with anonymous e-mail addresses, then send the Qchex checks as payment. Many sellers cash the checks and send the winnings, only to find out later the checks are bogus, and their goods have been stolen, Ramont said.

"If you are selling online, look out for checks from this company," Ramont said.

Demand drafts can be tricky
Qchex-issued fraudulent checks are tricky for consumers to spot and handle because they utilize a little-known check format known as a demand draft. The checks require no signature, and instead often are stamped "signature not required" in the signature area. Banks generally cash the checks and deposit funds into the depositors' accounts, but can then take weeks to determine if the check is fraudulent. At that point, the bank can remove the funds from a victim's account.

"We want to alert people that before they cash a check that they receive from this company to have the funds verified before they cash it," Ramont said. "That's the only way anybody will be able to determine whether or not the check is good."

Demand drafts, also known as "remotely created checks," have become such an attractive target for criminals of late that the Federal Reserve in February proposed a new set of rules to govern them. And the National Association of Attorneys General in April called on the Fed to place an outright ban on demand drafts, citing increased fraud.

"The fact that a stranger can pull money out of a person's bank account using only the numbers at the bottom of his or her check is not commonly understood," the group wrote to the Fed, commenting on the proposed rules change. "Complaints about unauthorized bank debits are believed to be grossly underreported, perhaps because of the lack of public awareness of this type of bank account vulnerability."

Mary McNamara, who runs Urban Age Institute in California, said she received $10,000 worth of fraudulent Qchex checks in early May. She said she didn't cash the checks.

But Pete Larson told MSNBC.com a criminal used Qchex to bleed his checking account.
"Someone has stolen my checking account number and routing number and has set up a Qchex account under my name. I have been calling ever since I received a letter from Qchex telling me I had an account set up. I called all day yesterday and even faxed a message requesting a call back," Larson wrote in his complaint to the firm. "They stole $1,800 ... and tried to cash 5-6 more checks yesterday. I was charged $35 for each of the 6 checks that did not clear last night. I have had to close my checking account and have lost 2 days of work taking care of this."

Larson says he received a form letter from Qchex telling him to contact his local police department.

"You know your system is faulty and you continue to turn a blind eye while criminals use your so-called secure system as a tool to rob people blind," Larson replied.

http://www.msnbc.msn.com/id/8566318/page/2/

Bob Sullivan is author of Your Evil Twin: Behind the Identity Theft Epidemic

__________________

There is a new site that is bad www.checksonly.com another version of Qchex, beware

For Release: October 2, 2006


Qchex, an Internet-based check creation and delivery service, has agreed to a temporary restraining order to halt its unfair business practices. In a complaint filed in U.S. District Court, the Federal Trade Commission charged that Qchex creates and sends checks drawn on any bank account identified by a Qchex customer without verifying that the customer has authority to write checks drawn on that account. As a result, con artists have used the Qchex service to draw checks on bank accounts that belong to others. According to the FTC, Qchex’s practices have harmed both innocent account holders whose bank accounts have been debited, and individuals and businesses who received fraudulent Qchex checks as payment for goods and services. The agency alleges the practices violate federal law, and has asked the court to order a permanent halt to the illegal operation, and to order the defendants to give up their ill-gotten gains.

According to the FTC’s court filings, before September 2005, Qchex offered and sold its online check services without making any effort at all to verify that someone ordering a check on an identified account actually had authorization to write checks to be drawn on that account. Indeed, Qchex would create and deliver checks for a customer even when the customer’s name was different from the name on the checking account and different from the name on the credit card account the customer used to pay for the check service. In September 2005, Qchex implemented – and then subsequently abandoned – a series of verification plans that the FTC alleges were haphazard and ineffective.

The FTC charged that Qchex’s failure to verify customers’ authority to write checks on identified accounts injured account holders by causing funds to be withdrawn from their bank accounts without their knowledge or authorization, and causing them to incur the time, trouble, and costs of closing accounts, opening new accounts, and buying new checks. Some account holders whose accounts were debited without their authorization tried to contact Qchex to tell the company it was processing checks on the wrong account, but they could not locate a working phone number for Qchex. In some cases where account holders did reach Qchex to notify the company that checks were being illegally drawn on their accounts, Qchex ignored them and continued to create and deliver checks on their accounts. The FTC has received hundreds of consumer complaints about the company.

The FTC complaint states that in many cases scammers used a Qchex check to pay individuals or businesses for goods or services. The unwitting individual or business receiving such a check deposited it, and, because the check initially cleared, provided the goods or services to the scammers. But when the unauthorized check ultimately bounced, the amount of the check was debited from the recipient’s account.

Scammers also used Qchex checks in overpayment schemes, in which the scammer overpaid an unsuspecting third party for items or services and asked that third party to wire back the difference between the price of the item or service and the amount of the bogus Qchex check. The checks initially cleared, so these recipients of Qchex checks wired the excess funds as requested. But again, when an unauthorized check ultimately bounced, the amount of the previously deposited Qchex check was debited from the victim’s account.

The FTC charges that the defendants’ conduct constitutes unfair practices that violate the FTC Act. The agency will seek a permanent halt to the business practices and an order requiring that the defendants give up their ill-gotten gains.

Defendants named in this case are Neovi, Inc., doing business as Neovi Data Corporation and Qchex.com; G7 Productivity Systems, Inc., doing business as Qchex.com; and their principals, James M. Danforth and Thomas Villwock. The defendants are based in San Diego, California.

The FTC received invaluable assistance on this matter from the Federal Deposit Insurance Corporation, the Federal Communications Commission, and United States Postal Inspection Service.

The Commission vote to authorize filing the complaint was 5-0. The complaint was filed in U.S. District Court for the Southern District of California.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. The case will be decided by the court.

Copies of the complaint and stipulated temporary restraining order are available from the FTC’s Web site at Federal Trade Commission - Home and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at Federal Trade Commission - Home. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to thousands of civil and criminal law enforcement agencies in the U.S. and abroad.

Media Contact:
Claudia Bourne Farrell,
Office of Public Affairs
202-326-2181

(FTC File No. 052-3155)
Court Halts Illegal Operations of Online Check Processing Firm

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