Electronic Check Scam

One of the newest and increasingly popular scams today is electronic check fraud. The Internet has made it much easier for these scams to happen.

Beware of situations where you are sent a paper draft issued through an internet service as payment for goods you are selling, or services you have rendered.  These drafts appear to be from online financial services that allow you to send and receive printable checks over the Internet. The drafts are printed on standard business-like check stock, however, they do not have a maker's signature in the lower right hand corner of the draft. Instead, they have the "account holder's" name printed on the signature line, with this statement printed above the line: "Signature not Required. Your Depositor has authorized this payment to payee. Payee to hold you harmless for payment of this document. This document shall be deposited only to the credit of payee".

Protect yourself from this kind of fraud and be very wary of accepting checks that fit this pattern. For more information, read the following article: http://www.msnbc.msn.com/id/7914159/