Fake Check Issuers, Beware!

One of the many services my pawn shop provides is that of cashing checks. Not everyone has been trained to do this, but I am one of the unlucky few who is able to complete such transactions.

I say that I am unlucky because the process of cashing a check can--and usually is--frustrating, namely because of the check verification process we are required to follow. This process involves getting the number of the company which issued the check, either through the local phone book or 411 (for unlisted or out of town businesses), contacting the company, and then verifying that the check is valid. This may sound simple and straightforward enough, but there are many problems which can arise throughout this process. Firstly, the automated system 411 uses is shoddy. It often misinterprets what you say and then transfers you to workers who are unnecessarily cold and rushed. And then when the desired company is finally reached, there are dangers of additional automated systems, strings of tranfers, and closed payroll offices. There have been many occassions when I have not been able to cash someone's check because of such problems.

Anyway, my loan walking (see Loan Walking) was interrupted today when I was called out from the back to assist someone who needed to cash a check. I went out, void of any enthusiasm, and called 411 to obtain the number for the company. To my great surprise, getting the number from 411 was very easy. But also to my great surprise, I noticed something strange. There was a typo in the company's name on the check -- It said "____ ____ Corportion" instead of "_____ _____ Corporation". That was a definite red flag that something was wrong with this check, but I continued calling the company anyway. After all, it was listed in 411 and it couldn't hurt to see what I could find out.

When someone answered my call, I explained who I was--someone from a check cashing establishment who needed to verify a check--and received the response that the check was probably fraudulent and that I would need to talk to someone in the financing department.

A thrill raced through my body. I'd never encountered a fake check before. I'd called dozens of companies and always had the checks be good. How exciting it would be if the check I was holding in my hands was a fake!

When I was successfully, transferred, the individual in the financial department asked for the check number. I gladly gave it to her and was told that it was not a check they had issued. I was then informed that there had been multiple people who had received fraudulent checks under the guise of their company. Apparently, there are individuals who are buying and selling things under their name (their misspelled name, that is), and this was not the first bogus check they had come across. On top of that, I found a second typo in the company's named on the check. It read "____ Intruments Corportion" instead of "____ Instruments Corporation". And to make things even better, the company's address on the check was off one number. The check had the correct city, state, and street, but the street number was incorrect.

I thanked this person for their time and turned back to the customer, who, at this point, had been waiting for several minutes. Not knowing how to say what I needed to in a polite manner, I decided to be as blunt as possible, partially because I thought it would be fun. I handed him the check back and said "I just spoke with the company and they said this is a fraudulent check. We cannot cash this. I'm sorry." I used the word "fraudulent" because I thought it sounded scarier than "fake". I'm not sure how effective my word choice was, but the man's face went slack and he visibly paled upon hearing this.

At the start of any check cashing transaction, it it customary to ask the customer where they had gotten the check and what it was for. I did so and was provided with the answer that he was selling his guitar to someone in Florida. Luckily for this man, he had not mailed out his guitar. The man looked at the check like it was a dead child of his, thanked me, and left the store. It wasn't until this point that I realized I should have spoken to a manger before sending him on his way. Feeling very nervous, I sought out the head of the store and explained the situation.

As it turns out, we do not try to hold the customer with the fraudulent check in the store at all. We simply tell them it is a fake and then send them on their way. This is because most people who bring in fake checks are the ones being scammed and not the ones doing the scamming.

After looking at the copy of the check which I made (we make copies of every check at the start of each check cashing transaction to keep for our records), my boss pointed out several things which screamed of its fakeness:

1) The check number, 1008, was too small of a number for an actual company to use. That's a number more suited for one of the very first checks in someone's personal checking account, not a business which sends out checks across the country.
2) Most checks have the payee's name and address printed on the check, but this one one had the name and had a empty space where the address should have been.
3) In the note section of the check, it said "PAYMENT APPROVED", as if that was supposed to convince someone of its genuinity.
4) The amount of the check was exactly $1,900.00. Real checks almost never are issued in such round numbers.
5) One of the fonts used on the check was the typical "I'm a fake" font which no real companies use.
6) The front of the check stated that there was a watermark, but the only "watermark" we saw was a small off-centered blotch of discoloration which looked like it had resulted from an actual drop of water being spilled on it.

After explaining all of this, my boss commended me for stopping this fraudulent check. In all actuality, I deserved no such thanks. Yes, I followed the protocol which safeguards us against such douchebaggery, but I was not educated well enough to recognize the multiple signs that the check was a fake on my own. But I suppose I'll take what praise I can get. Fake check issuers, beware! I now know your secrets!