This just another incarnation of the overpaying by bank draft scam that has been around for years.
Forged bank drafts of very good quality have been doing the rounds for years now.
If anyone tries to tell you that a “bank draft is as good as cash” tell them to take a hike.
My advice is never ever take a bank draft from a third party with out checking with the issuing branch that the draft and the amount on it are genuine, perferably go to the issuing branch and cash it before parting with the goods.
Scammer (say prospective tenant for a rent a room on daft) posts you a bank draft from overseas (say drawn on a German bank) for €6k and ask you to lodge it to your account including a month’s rent, deposit and some spare cash which they will pick up off you when they arrive over.
The funds appear cleared in your account almost immediately.
About three weeks later they send you an email saying they are buying some cameras or whatever online and having them delivered to you, and could you pay €4k out of the €6k they sent you to such and such via Western Union.
Grand you say, I’ve still got €2k of your money, so I’ll withdraw €4k for you and send it on for you to pay for those cameras.
Then two weeks later your bank tells you that (six weeks after you lodged it) the foreign draft has bounced and they take the €6k back out of your account. But you withdrew €4k of that money and sent it overseas, so you are out €4k. The bank makes you take a personal loan to repay the €4k.
To me the banks should not be clearing these funds and making them available for withdrawal until the draft has been honoured by the overseas bank. People are assuming that if the funds are cleared, then the draft has been honoured, whereas the clearing process can take up to six weeks.
people are ringing the banks who are saying the money is available but the draft doesn’t bounce for 6 weeks.
One guy where the same scam was tried on him by cheque rather than draft from the UK refused to send the money or goods til the cheque cleared fully even though the funds were available.
Sure enough the banks bounced the cheque but charged him the difference between the exchange rate on the days of the two transactions!!! it cost him nearly a grand for the privelege of the bank making funds available to him during the period before the cheque bounced.
thieves and banks…
at least a thief doesn’t cod himself.
Yeah, I lodged a draft once, and the funds were available to me immediately. A few weeks later, the bank removed the funds from my account, as the draft failed to clear in its country of origin. It wasnt a scam, just that the draft had expired but I was annoyed the bank made the funds available and then cancelled them later.
The banks should definitely tighten that up, but to be honest a decent dose of common sense tells you that no one is going to give you money for nothing, even if it is to hold on to it for a while. Who sends a few grand or a few hundred more than necessary to someone they’ve never met?
It is a good situation for banks, as it is equivalent of lodging this money into account. They can then lend this money, show it on balance. With 6 weeks clearing time it takes about 9 scams to be able to pretend to have this money for a full year. They should also warn customers about possibility of such scam, so they will not withdraw the money.
Dont you have to specifically ask for the cheque clearing flag to be removed from your account? I did the first time I lodged a cheque years ago. It meant the funds were available as soon as I lodged it, rather than 5 days or however long it took.