THE BANKRUPTCYSERVICES.NET NEWSLETTER http://bankruptcyservices.net Bankruptcy Information on the Internet May 27, 1999 Issue 27 Dan Stanley, Editor danstanley@bankruptcyservices.net ------------------------------------------------------------ By subscription only! Welcome to your next issue of "The BankruptcyServices.Net Newsletter". You are receiving this newsletter because you requested a subscription. Unsubscribe instructions are at the end of this newsletter. ------------------------------------------------------------ IN THIS ISSUE ------------------------------------------------------------ => QUARTERLY BANKRUPTCY FILINGS POST SIGNIFICANT DROP => CHECK FRAUD - YOU ARE AT RISK! => TO AVOID EMBARRASSMENT CONSULT BEFORE YOU FORWARD => How to Be Featured as our Guest Columnist => Subscribe/Unsubscribe information ------------------------------------------------------------ ABI UPDATE QUARTERLY BANKRUPTCY FILINGS POST SIGNIFICANT DROP ------------------------------------------------------------ Data Show Bankruptcies May Be Leveling Off The total number of new bankruptcies filed during the first three months of 1999 dropped to 330,784, posting the lowest number of filings since the final quarter of 1996, according to data released by the Administrative Office of the U.S. Courts. The number of bankruptcies filed during the 12-month period ending March 31, 1999 totaled 1,419,199, a slight drop of 0.3 percent from the previous 12-month period, when filings totaled 1,423,128. Total bankruptcies for the 12-month period mark the first decrease since the identical period in 1996. Personal bankruptcies for the quarter decreased to 321,604 (down by 5.9 percent when compared to the first quarter of 1998), and personal filings for the 12-month period ending March 31 increased by a fraction of a percent to 1,378,071. The decline corresponds with a report in Monday's "Wall Street Journal" that the pace of new consumer debt has slowed, along with delinquency and charge-off rates. Moody's Investors Service reports that consumers are paying off outstanding principal at record levels. Business bankruptcies continued their decline in the first quarter, consistent with the health of the national economy, dropping to 9,180, a 26.0 percent decrease from the same three-month period in 1998. Business filings decreased during the 12-month period ending March 31 to 41,128, a 21.9 percent drop from the previous 12-month period. To view additional statistics, visit http://www.abiworld.org/stats/newstatsfront.html. To view ABI's press release on the first quarter stats, visit http://www.abiworld.org/media/newmediafront.html. Mana @ ABI Mana@abiworld.org ------------------------------------------------------------ CHECK FRAUD - YOU ARE AT RISK! ------------------------------------------------------------ By Les C. Cseh, Sensible Solutions Copyright (c) 1998, Sensible Solutions You could be on the hook. Did you know that the UCC (Uniform Commercial Code) regulations place responsibility for forgery losses partially on bank customers, rather than solely on the banks? But in addition to this exposure, there can be significant expenses and lost time investigating the crime, not to mention damage to your credibility and reputation. Your only defense is to show that you have taken due diligence. One way to demonstrate this is by implementing careful practices regarding your checks. Another is to use checks with well implemented security features. How bad is the problem? The problem is so serious that the banks don't like to reveal the extent of the problem. Estimates range from hundreds of millions to 10 billion dollars annually. In 1991, the FBI tracked over 26,000 cases, but this is just the tip of the iceberg, because the FBI mostly focuses on cases where the amount exceeds $100,000. Just one example comes from The Green Sheet (a publication to the Financial Services Industry), reporting an incident where a family had allegedly stolen more than $1 million from area merchants since 1993 by writing checks on closed and non-existent accounts at 11 financial institutions in Indiana and Chicago under 25 different names. In just 4 years, Northern Trust Bank has detected more than 3 million dollars worth of counterfeit checks. What kind of thing do criminals look for? It is an endless list, but here are some of the types of things that someone looking to counterfeit or tamper might look for: * High volume bank accounts where a fraudulent check can easily slip through. * Checks that are easy to reproduce using a color copier. * Checks that are easy to tamper with. * Easy access to checkbook or check stock. What can I do to protect myself? By protection, I mean reducing the chance of someone counterfeiting or altering your checks, as well as reducing your liability when it occurs. Be aware that is impossible to prevent fraud. But you can significantly minimize the risk using a two-prong approach. It is critical that good procedures related to your check processing are put in place, and that you use a check that is difficult to counterfeit or alter. * Reconcile your bank statement promptly. Now that bank statements are available online, you can do this as frequently as you feel is necessary for your situation. * Restrict access to your checkbook/check stock. Ensure that only trusted staff that need access have it. * Audit your checks. However, this can be difficult because often checks are removed from the bottom or middle of the book or stack. * Use a custom design. While this isn't an affordable option for many businesses, look into it. The next best thing is to ensure that your check supplier uses comprehensive security features. Remember though that a custom design is not a substitute for security features. * Advise your bank branches' officials of the security features in your checks . in person or in writing (and keep a copy of the letter on file!). * If you issue a large number of checks, particularly with a low amount (e.g. rebate checks), open a separate account and alert the bank staff of an upper limit for that account. The bottom line. Don't take unnecessary chances. The more security you have through procedures and choice of check form, the less likely that someone will tamper with your checks. Les C. Cseh is the owner of Sensible Solutions, a check printer operating out of Alexandria Bay, NY and Perth Road, Ontario. He has been involved in financial documents since 1985, and had participated in ANS X9B standards work. He can be reached at info@sensible-solutions.com and at 888-85-CHECK. In addition to a variety of secure checks, Sensible Solutions web site (http://www.sensible-solutions.com) offers a non- commercial section related to check processing issues called the MICR Repository. Copyright (c) 1998, Sensible Solutions. ------------------------------------------------------------ TO AVOID EMBARRASSMENT CONSULT BEFORE YOU FORWARD ------------------------------------------------------------ Last week I got this email. I am on a lot of listserve mailing lists and get a lot of good information. So I thought this was some and had my finger on the forward button when a voice in my head said, "You better check this out." Here is the email: "Hi this is pretty cool! Netscape and AOL have recently merged to form the largest Internet company in the world. In an effort to remain at pace with this giant, Microsoft has introduced a new email tracking system as a way to keep Internet Explorer as the most popular browser on the market. This email is a beta test of the new software and Microsoft has generously offered to compensate those who participate in the testing process. For each person you send this email to you will be given $5. For every person they give it to, you will be given an additional $3. For every person they send it to you will receive $1. Microsoft will tally all the emails produced under your name over a two week period and then email you with more instructions. This beta test is only for Microsoft Windows users because the email-tracking device that contacts Microsoft is embedded into the code of Windows 95 and 98. I know you guys hate forwards. But I started this a month ago because I was very short on cash. A week ago I got an email from Microsoft asking me for my address. I gave it to them and yesterday I got a check in the mail for $800. It really works. I wanted you to get a piece of the action. You won't regret it." To check it out I went to the "Infamous Urban Legend" section of http://scambusters.org/ and there it was at Number 2: "Hello everybody, My name is Bill Gates. I have just written up an e-mail tracing program that traces everyone to whom this message is forwarded to. I am experimenting with this and I need your help. Forward this to everyone you know and if it reaches 1000 people everyone on the list will receive $1000 at my expense. Enjoy. Your friend, Bill Gates" ------------------------------------------------------------ How to be Featured as a Guest Columnist ------------------------------------------------------------ Newsletter advertising is the best way of reaching a highly targeted audience on the Internet and free advertising is always the best buy. You probably have some consumer oriented articles in your files already so why not get some use out of them. Dust off one and cut it down to newsletter size (about 500 words but fewer is ok) and send it to me for publication. If you have additional information on your website you can use your article to refer the readers there. If you don't have a website you can refer them to your directory listing. Send all articles to the Editor: danstanley@bankruptcyservices.net ------------------------------------------------------------ CLASSIFIED ADS ------------------------------------------------------------ FREE!!! FREE!!! FREE!!! FREE!!! FREE!!! FREE!!! FREE!!! FREE!!! Get Hits Fast with Your New Instant Hit Generator Page! Go to: http://ihg.trafficmagic.net/pages/4775135199945339.html ************************************************************* SAFE DRINKING WATER IS THE MOST CRUCIAL Y2K CONSIDERATION. Safeguard your family with a gravity-fed British Berkefeld filter. This unit is the same system used by the Red Cross worldwide. Order your British Berkefeld gravity-fed water filter today. 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