4
Dec/1130

It’s A Wonderful Life (1946) – James Stewart: Embezzlement?

Funny how embezzlements seem to find me whatever I am doing.

Believe it or not, although at my age I have had much opportunity, I had never watched the Christmas classic “It’s a Wonderful Life” staring Jimmy Stewart until the other night.

Much to my surprise the movie centered around Stewart working at a bank, and $8,000 of missing money.  Customer Potter actually stole the funds, resulting in the loss.  Turning to Potter out of desperation to obtain a loan to make the funds whole, Potter in turn never mentions he stole the funds, and rather calls the prosecutor and authorities to have Stewart arrested for embezzling the funds from the bank.

I won’t share more of the details, as I don’t want to spoil it for anyone who has not seen the movie.  It is a “must see” film.

I just found it interesting that when I took a moment away from the daily fraud grind, and sat down to finally watch this classic, that it involved embezzlement.

Here’s a link to a trailer for the movie via Youtube:

Filed under Battle on Fraud 30 Comments »

2
Dec/1110

Debit Card Monthly Fee – Reversal of Plans To Charge $5 Monthly

A little late with my post, but passing along the news story that Bank of America, the first to publicly announce plans to charge debit card users a monthly fee of $5, decided November 1st to reverse its decision.  One compelling reason may have had something to do with the over 300,000 signatures obtained on a petition protesting Bank of America’s decision to start charging.

Although banks may have changed their business strategy, and reversed their plans to charge monthly fees for use of a debit card, coupled with at least one posted response citing Mastercard and Visa setting low to no liability limits due to fraudulent activity on a debit card account, my position on debit cards remains unchanged.

Loose them!

You have to experience debit card fraud for yourself personally, or in my case three times, to appreciate that while you may not have ultimate liability for the illegal activity and unlawful withdrawals from your account, you will still be out of your funds and at the mercy of the financial institution to put them back.

If during the time funds were inappropriately taken and the time the bank puts your funds back into your account other bills such as your mortgage and credit cards were due, you may not be able to pay those bills timely, which could have a negative impact on your credit score and history.

In one actual case with a client, the unlawful withdrawal from the company account occurred in February.  They are still waiting for the bank to put their funds back, some nine months later.  They have, however, been told by the bank that they won;t be responsible for the fraudulent activity – lot’s of help that has been without use of their funds for so ling.

It there any reason why you can’t abandon your debit card, return to a traditional credit card, and pay the balance off each month?

Here’s the link to an article:

http://abcnews.go.com/Business/bank-america-drops-plan-debit-card-fee/story?id=14857970

Filed under Beyond Fraud 10 Comments »

27
Oct/1113

Another Great Reason To Loose Your Bank Debit Card: Monthly Fees

A colleague business owner noticed a transaction on his bank account that wasn’t appropriate.  A check had cleared for an amount much too large for the dollar range of checks his company typically writes.  Within minutes he identified that the check had been altered and cashed, for approximately 1,900% more than it was originally written.  Consistent with requirements, he contacted his bank and alerted them to the problem.  Later that same day he was at the bank completing and signing an affidavit.  Once completed, he needed to get the funds back into the company’s account to pay bills.

That occurred in February 2011, and he is still waiting for the bank to return his funds.

More and more banks are shifting away from taking the hit from fraudulent activity, moving towards sharing the fraud loss with the customer.  Some banks now refer to fraud as a “shared responsibility” between their financial institution and their customer.  That makes sense, as account holders should have measures in place to minimize their losses from fraud.   However, fraud can still occur even with the best of controls.

In the latest update on debit cards,  Bank of America and other banks recently announced they will begin charging bank debit card users a monthly service fee.  According to news reports, Bank of America plans on charging $5.00 per month for the privilege of using a bank debit card, while other banks are planning on charging lower amounts. (here’s the URL to a good article – http://www.nytimes.com/2011/09/30/business/banks-to-make-customers-pay-debit-card-fee.html).

Bank debit cards are readily targeted and sought by fraudsters as they provide direct access to victims’ funds.  If successful with your account, you, the victimized debit card holder, will be at the mercy of your bank to replenish your funds into your account.

My position on bank debit cards has remained unchanged.  Save yourself the aggravation and now any monthly fees.  Loose your debit card, and return to a classic credit card along with a stand-alone ATM card.

And as always, remain vigilant in monitoring your bank and credit card statements and activity regularly.

Filed under Battle on Fraud 13 Comments »

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