[HN Gopher] My experience with check fraud
       ___________________________________________________________________
        
       My experience with check fraud
        
       Author : Amorymeltzer
       Score  : 52 points
       Date   : 2023-01-02 13:32 UTC (9 hours ago)
        
 (HTM) web link (obliviousinvestor.com)
 (TXT) w3m dump (obliviousinvestor.com)
        
       | a9ex wrote:
       | I never used a check my entire life, it's just not a thing in
       | Europe (:
       | 
       | In the pre-internet-banking times, you would just fill out one of
       | these forms [0] to send money from your account directly to
       | someone else.
       | 
       | [0]
       | https://de.m.wikipedia.org/wiki/Zahlschein#/media/Datei%3AZa...
        
         | nibbleshifter wrote:
         | I've used cheques a few times in Europe. They aren't common
         | (especially since SEPA), but they do still exist.
        
         | sneak wrote:
         | Checks are basically the same thing, they're just given to the
         | payee to give to their bank (to give to your bank) instead.
         | 
         | The high penalties (historically) for writing bad checks meant
         | that if you had a signed check in hand, you had at least a
         | small level of confidence that you had actually been paid the
         | money, much like cash in hand (it could of course be
         | counterfeit, but you can assume to some extent that it is not).
        
         | vladvasiliu wrote:
         | > I never used a check my entire life, it's just not a thing in
         | Europe (:
         | 
         | Which parts of Europe? I use them all the time in France. A
         | bunch of taxes companies have to pay can't be paid by credit
         | card. It's either check or bank transfer.
        
           | silvestrov wrote:
           | In Denmark checks are not supported payment anymore, not even
           | at banks: https://danskebank.dk/privat/find-
           | hjaelp/betalinger-og-overf...
           | 
           | Everything is debit card, bank transfer or MobilePay.
           | Creditcards are only really used for travel and payment of US
           | companies.
        
           | bigbacaloa wrote:
           | In Spain I've never seen a check except ones sent to me from
           | the US and bank checks to pay mortgages.
        
             | harperlee wrote:
             | In Spain it's quite rare although they're still used for
             | things like mortgages and inheritances.
        
           | Nextgrid wrote:
           | I've seen checks being used in France in the past but that
           | was almost a decade ago and I haven't been there since. Are
           | they still prevalent, and if so, why? Is the bank transfer UX
           | not good?
        
           | hnbad wrote:
           | In Germany I haven't seen one since the 1990s. I was
           | horrified to learn that they're still in use but apparently
           | there have been only 8.3 million transactions with checks in
           | Germany in 2019 compared to some 11000 million direct debit,
           | 6600 million bank transfers and 6300 debit card transactions.
           | 
           | Apparently there was a Eurocheque system that enabled
           | guarantees for international cheque payments in the EU but
           | ended in 2001. This is generally cited as one of the main
           | reasons cheques rapidly became irrelevant given that EC debit
           | cards were still available and online banking became a thing.
        
         | jccalhoun wrote:
         | I'm in the USA and I write maybe three checks a year. When I
         | was renting I would pay with check but I don't rent any more.
         | Now I write a check to pay the person who is doing work on the
         | house. I can't remember the last time I sent one through the
         | mail or wrote one at a store.
        
         | heisenbit wrote:
         | Which reminds me, being in Germany of one night I dropped such
         | an order into the bank mailbox to pay my taxes as this exceeded
         | the online limits. Where it then likely was retrieved and the
         | information on it was used to wire 5000EUR to the U.K. where
         | probably a money mule was forwarding it. Bank eventually
         | returned it.
        
       | peter303 wrote:
       | The only physical check I have written in the past four years was
       | to the US Passport Office. They refuse any electronic payment
       | method.
       | 
       | The next most recent paper check was a wedding gift. But modern
       | wedding registries accept digital payments now.
        
       | beej71 wrote:
       | Property taxes are the only place I still use them. I can pay
       | with a credit card, but they charge a percentage "convenience
       | fee". The county does have a drop box for paying, though.
        
         | ghaff wrote:
         | What happens a lot of the time is that towns farm out their
         | epayments to a private company for "free" that, reasonably
         | enough, needs to recoup their expenses and make a profit. I
         | just use my bank's bill pay that will cut a check and mail it
         | for free if they can't do an electronic transfer.
        
       | wdb wrote:
       | Can still remember when I received a check in the early 2000s
       | from an American company. I just didn't know what to do with it.
       | Luckily, the local bank branch knew what to do. Even 15-20 years
       | ago checks were pretty uncommon in my part of Europe
        
       | crazygringo wrote:
       | This is exactly why the USPS started replacing the blue box
       | opening slots with a narrower version in New York City and
       | surrounding areas starting back in 2019 [1], to prevent "mail
       | fishing" -- retrieving envelopes from people paying bills,
       | specifically to wash found checks in order commit fraud.
       | 
       | Which, if you used to use the blue boxes for mailing thin
       | packages, is a huge annoyance because you can't anymore. :(
       | 
       | Seriously, these days _nobody_ should be writing personal checks
       | using a pen. If you do need a check for a transaction, use a
       | cashier 's check (different from a personal check, it's drawn on
       | the bank) for occasional large amounts (like apartment deposit or
       | buying a used car), or most banks allow you to send a paper check
       | via online banking for routine needs -- you fill out the details
       | online and it mails a paper check to the recipient that, AFAIK,
       | can't be washed for check fraud. (All of this is USA specific, to
       | be clear.)
       | 
       | [1] https://www.nytimes.com/2019/03/21/nyregion/mailbox-theft-
       | fi...
        
         | rippercushions wrote:
         | > Seriously, these days nobody should be writing personal
         | checks
         | 
         | FTFY. The US is the only country in the world that I know of
         | where writing personal checks is still commonplace. In Europe
         | they're thoroughly obsolete, and in Asia, where they were
         | mostly uncommon in the first place, even the few once check-
         | happy countries like Singapore have pretty much migrated off.
        
           | tnjm wrote:
           | French resident here. Received a bill from this week from a
           | medical lab for some tests; the only payment options are
           | either visit the lab in person (an hour's drive away) or mail
           | a personal check. This is not uncommon here, and even most
           | large supermarket chains still accept checks.
        
             | Thlom wrote:
             | Wow. I'm a year away from 40 and have handled exactly one
             | check my entire life. A gift from my uncle for my
             | confirmation. I have never seen them used in shops and I
             | have never heard of paying bills with checks. These days I
             | get most bills straight into my online bank and just have
             | to confirm the payment. It's been more or less like this my
             | entire adult life.
             | 
             | Norway BTW. Perhaps our small population makes it easier to
             | just end old legacy shit?
        
           | kerneis wrote:
           | They're still used in France even if mostly by old people.
        
       | cuteboy19 wrote:
       | The last time I ever used a check was in 2007, when my
       | grandfather handed me a birthday present. It's such an ancient
       | concept in the non US world that it's now reserved only for
       | ceremony
        
         | maxerickson wrote:
         | That's how they are used in the US too, if you look at things a
         | bit askew.
         | 
         | Other payment methods work fine and are widespread, so the vast
         | majority of uses of checks are by people who have confused
         | ideas about how they work (they prefer the ceremony of writing
         | a check compared to the effort of understanding), or in
         | particular circumstances where they were used traditionally and
         | maybe satisfy some antiquated legal mechanism (almost a literal
         | ceremonial money transfer).
        
         | bbbbb5 wrote:
         | My Dubai, Hong Kong and Singapore banks have issued me cheque
         | books. Clearly some people use them outside of the US, although
         | I'm not quite sure for what.
        
           | cuteboy19 wrote:
           | Oh yes, chequebooks are still issued, but no one uses them.
           | Chequebooks used to be these thick 50-100 page ones which
           | used to cost a lot too. Nowadays you would be lucky to get a
           | 15 page leaflet
        
         | hrns wrote:
         | Living in central Europe, when Air Canada gave me check
         | (compensation for the rescheduled flight) I went through a lot
         | of effort to cash it. Once in a lifetime experience!
        
           | chollida1 wrote:
           | Interesting. What constitutes "a lot of effort to cash it"?
           | 
           | I'm Canadian and I rarely use them but our banking app just
           | lets you take a picture of both sides and that's it.
           | 
           | Also you can just put them into an ATM as a deposit and your
           | done.
           | 
           | Also you can go into the bank and hand it to the teller and
           | your done.
           | 
           | I'd be interested in why you had to go through alot of effort
           | to cash your check.
        
             | krisoft wrote:
             | > I'd be interested in why you had to go through alot of
             | effort to cash your check.
             | 
             | I'm not the commenter you are asking from I also used to
             | live in central europe. There as far as I can tell the
             | concept of a "check" simply doesn't exist. So much so that
             | I don't even know what is the equivalent word in the local
             | language. If I would get one I would need to go to my bank
             | in person and ask them if they can do anything with. I
             | would already count that as a hassle, but I just looked it
             | up online and it seems my bank doesn't handle checks. There
             | are rummours online that some other banks do cash checks,
             | but it seems some of those have changed their policy since
             | and they are no longer accepting checks either.
             | 
             | All in all it works as well as being paid with a rai stone
             | or a cowry sea shell, while lacking the aesthetic benefits
             | of those.
        
             | hrns wrote:
             | Only one bank in Poland handles them, I had to open a
             | separate account just to cash it. As far as I remember the
             | cashing in process took some time (about a week maybe?) and
             | the fees were about 25% of the check value (operations +
             | currency exchange).
             | 
             | There's no option in doing it from the app/ATM afaik.
        
               | chollida1 wrote:
               | I don't want to dox you but I have to ask, what bank in
               | Poland do you use that wouldn't take a check?
               | 
               | I've got a friend there and he says he has no problem
               | cashing checks at his bank and has never heard of a bank
               | not taking a check and there were no fees for cashing
               | checks.
               | 
               | The exchange rate sucks but that has nothing todo with a
               | check
               | 
               |  _EDIT_ he did say it can take a week for the money to
               | clear, so that is a big downside.
        
               | hrns wrote:
               | Well, my bank did not handle them - the cashier told me
               | that there is only one bank that handles them (Pekao SA)
               | so I didn't waste time searching for others.
               | 
               | Maybe your friend has a company/businesses account? The
               | services may be different than for a personal one.
        
               | chollida1 wrote:
               | Good to know.
               | 
               | I appreciate you teaching me something today!!
        
             | wiredfool wrote:
             | For me, in Ireland, cashing a US check through my bank
             | teller costs 150ish eur (that's one hundred and fifty, not
             | a buck fifty) and takes 6 weeks. They basically have to
             | hand process it and send it to their US correspondent bank.
             | 
             | At one point, I got tax refund and stimulus checks from the
             | Treasury, and it turned out to just be easier to endorse
             | them to my remaining US account and mail them to the branch
             | that has my account.
             | 
             | In theory I could use the bank's remote deposit capture
             | service, but: 1) The checks were too big, there's a ~$2500
             | limit on RDC, and 2) The bank has complained in the past
             | that I'm not supposed to use it when I'm overseas. There's
             | some regulation that they're worried about.
             | 
             | I've seen a couple of checks in Ireland that haven't been
             | from the US, mainly tax refunds IIRC, but they're super
             | rare and no ATMs will take them. They'll take Euros for
             | deposits, but not checks. So it's a trip into see the Cash
             | desk at the bank.
        
             | ghaff wrote:
             | Foreign currency can be less straightforward.
             | 
             | Admittedly a number of years back, a Canadian company paid
             | me for a photo of mine they found online that they wanted
             | for an article.
             | 
             | Ended up having to go to a human bank teller to deposit it.
        
       | bigbacaloa wrote:
       | Unbelievable that anyone still uses handwritten checks.
       | Unbelievable that anyone has done so in the current century.
       | There exist diverse alternatives both more secure and easier to
       | use and they have existed for many, many years.
        
         | jjav wrote:
         | > Unbelievable that anyone still uses handwritten checks.
         | Unbelievable that anyone has done so in the current century.
         | There exist diverse alternatives both more secure and easier to
         | use and they have existed for many, many years.
         | 
         | Can you tell us what these supposedly more secure alternatives
         | are? At least in the US, I don't believe there is anything
         | better at the end of the day.
         | 
         | Credit cards can be more convenient, but not all places accept
         | them and of the ones who do sometimes they charge an inordinate
         | fee.
         | 
         | All the private companies (paypal, venmo, etc) are out because
         | it is well known they'll freeze your account without reason and
         | without recourse. So if you need a secure mechanism, stay away
         | from those.
         | 
         | That leaves checks as the most universal, overhead-free and
         | secure mechanism, other than plain cash but that's inconvenient
         | for large amounts.
        
         | [deleted]
        
         | sethd wrote:
         | For larger purchases there's often a fee to pay by credit card.
         | If the fee is equal to or lower than my cash back rate, I'll
         | pay by card, but sometimes checks are the only feasible option.
         | 
         | Recent example: Tree trimming company. They accepted check (no
         | fee) or card with 3% fee. The highest cash back card I have for
         | generic purchase is 2%, so I paid by check instead.
        
           | alkonaut wrote:
           | Now I'm more shocked to learn that having work done by a
           | professional doesn't result in an invoice but instead
           | requires immediate payment?
           | 
           | Card fees in Europe I think can't be shifted to the customer
           | but that obviously means they are just part of the price. But
           | - the price is the same regardless of payment method, so
           | there is no money saved by avoiding cards. That's why I
           | consider everything to be 0-fee (invoice, card, money
           | transfer).
        
       | MerelyMortal wrote:
       | I've never had one of my checks washed, but in second or third
       | grade, a classmate tried "washing" one of my worksheets.
       | 
       | Thankfully the teacher called me to her desk to why didn't I turn
       | in my worksheet (I had), and thankfully my worksheet was on top
       | of the stack which allowed me to see it and point out that I
       | turned it in, and someone else erased my name (still somewhat
       | visible) and wrote theirs.
       | 
       | It seems that many people aren't observant, don't care, and/or
       | don't want the confrontation.
        
         | adql wrote:
         | The credit/debit card must be signed by owner.
         | 
         | In my history of using debit cards for most, and now for near
         | everything not a single time anyone bothered to check. Even
         | back when the magnetic stripe was used.
         | 
         | I also was using out of date identity document for good 6
         | months and datacenter staff also haven't bothered to check
         | that.
        
           | ghaff wrote:
           | I'll add that my signature at this point is a totally
           | undecipherable inconsistent scrawl that is even more so in a
           | thin box on the back of a card. I assume I'm not that
           | unusual, especially given that I actually did learn Palmer
           | script once upon a time. I sort of have to laugh whenever I
           | still sometimes need to sign a credit card receipt.
        
       | maratc wrote:
       | For all those who tune in to the "checks are so 19th century"
       | tune: please note this is a good story about check fraud, as the
       | OP eventually got his money back.
       | 
       | With Paypal/Venmo/app-du-jour, in the event of an account
       | takeover, the result might be different.
       | 
       | Check fraud is an old problem -- as old as the checks themselves
       | -- and it's a problem well understood by the banks, the police,
       | investigators, and judges. On the other hand, good luck
       | explaining the police such obscure technical details as "they
       | installed a proxy on my IP" or "they sim-swapped me to intercept
       | the one-time password".
       | 
       | On another note, checks charge 0% commission: to pay someone $5,
       | you need $5.
        
         | adriancr wrote:
         | > "they installed a proxy on my IP"
         | 
         | This doesn't make sense.
         | 
         | > "they sim-swapped me to intercept the one-time password".
         | 
         | You would notice by losing phone connectivity... so you would
         | know you're compromised before you try to make a transaction.
         | 
         | Being 2FA, the attacker still needs to know the account
         | user/password...
         | 
         | Then there's hardware 2fa for a lot of banks that don't do
         | sms... good luck with that.
         | 
         | Or they use bank app in phone as 2fa. Which should run securely
         | in enclaves.
         | 
         | Even if they have all of the above, you just file a police
         | report for fraud and bank will claw back funds and reinstate
         | you, same as for checks.
        
           | maratc wrote:
           | > you just file a police report for fraud and bank will claw
           | back funds and reinstate you
           | 
           | If the fraudster has your password and OTP, and if the
           | money's gone, bank will do nothing -- as opposed to the check
           | fraud. That's why TLA is a good check fraud story.
        
             | adriancr wrote:
             | How do you prove check fraud for washed check?, it has your
             | signature, check is valid... funds get transferred same as
             | for hacked account.
        
               | maratc wrote:
               | > How do you prove check fraud for washed check?
               | 
               | By the law, the bank needs to do the proof, or return
               | your money. Not so with account takeovers. Which is my
               | whole point.
        
         | yakak wrote:
         | I think people who tell you it is 19th century live in
         | countries that use IBAN/SWIFT to push money instead of checks
         | to tell people an account is available to drain.
        
         | rippercushions wrote:
         | Account takeovers are a different beast that are closer to
         | someone breaking and entering your house, then raiding your
         | fridge and stealing your TV. The literal man in the middle
         | attack described in the article here, where a legitimate
         | transaction is hacked into an illegitimate one, is orders of
         | magnitude more difficult to execute for type of any electronic
         | payment.
        
           | chrisco255 wrote:
           | I would argue it's a lot harder to physically intercept a
           | check and chemically wash it than, for example, a credit card
           | number punched online. There are numerous trivial phishing
           | methods to get someone to punch in or reveal their CC details
           | online. And then again if companies don't store the data
           | properly, they are subject to trivial insider attacks and
           | hacks.
        
             | adriancr wrote:
             | They would then need to bypass 3d secure aproval process OR
             | use a website without in which case you get your money back
             | just by calling. (note: instant notification for
             | transactions on phone means you catch it fast)
             | 
             | You could use a bank with disposable one-time credit card
             | numbers.
             | 
             | You could disable online payments and only enable then when
             | you do transactions.
             | 
             | You could set up limits, say 100$ a month, after which
             | transactions get denied unless you alter it. So you wont be
             | incovenienced too much if you do need a card for netflix
             | and other recurring payments.
             | 
             | There are so many ways electronic payments are more secure
             | in new banks that care about this.
        
         | krisoft wrote:
         | > With Paypal/Venmo/app-du-jour, in the event of an account
         | takeover, the result might be different.
         | 
         | You are saying it as if checks vs apps are the only two option.
         | 
         | > On the other hand, good luck explaining the police such
         | obscure technical details as "they installed a proxy on my IP"
         | or "they sim-swapped me to intercept the one-time password".
         | 
         | Why would I explain any such thing? It is not my job to know
         | how the bank got hacked.
        
           | maratc wrote:
           | > It is not my job to know how the bank got hacked.
           | 
           | And without any explanations, it's not your bank's job to
           | return your money.
        
             | krisoft wrote:
             | The explanation is that you see a transaction you are not
             | recognising. You point at it and say "i didn't authorise
             | that one" and let them investigate.
             | 
             | They have the logs, you don't. This is probably the worst
             | day of your life or close to it, while it is just a normal
             | regular occurence for your bank. They have policies to
             | handle it from their side. They will ask a lot of question,
             | perhaps ask you to make a police report.
             | 
             | I ask you this, if you have chest pain and shortness of
             | breath, would you:
             | 
             | a; jurry-rig an oscilloscope to check your ECG, start
             | reading wikipedia all about cardiology, and then find a
             | nurse to tell them about how concerned you are about your
             | QT interval
             | 
             | Or
             | 
             | b; go to a hospital and tell them that you have chest pain
             | and shortness of breath?
        
               | maratc wrote:
               | You have a lot of good faith in what your bank would or
               | would not do, and they have a conflict of interest: if
               | they side with you, they would need to make you whole --
               | out of their own pocket. The hospital has the opposite
               | conflict of interest: they are actually interested in
               | helping you -- and charging you (or your insurance, or
               | NHS, or somebody).
               | 
               | If you get your case against the bank in front of a
               | judge, you need to prove your claim of an account
               | takeover. The bank does not need to prove anything. If
               | you haven't convinced the judge, no money for you.
        
               | adriancr wrote:
               | > they would need to make you whole -- out of their own
               | pocket.
               | 
               | Banks have the means to ask for a freeze/for the money
               | back from the other party's bank. Same as credit card
               | companies can do charge backs.
        
           | PopAlongKid wrote:
           | >It is not my job to know how the bank got hacked.
           | 
           | But it may be in your best interest to show that you are not
           | the hacker.
        
         | fsh wrote:
         | This is a very American perspective. The rest of the world has
         | used bank transfers for decades, and the risk is very well
         | understood. Online banking usually requires 2FA via a phone
         | app, or using the bank card with a separate reader. 2FA via SMS
         | has been mostly phased out due to the risk of SIM-swapping.
         | 
         | Bank transfers are also usually commission free, and are
         | instant in many countries.
        
           | maratc wrote:
           | For a perspective, I'm not American, and I don't feel
           | comfortable giving my bank details to random people.
           | 
           | I can also get checks with dates in the future, and know that
           | I will collect the money (this way or another). If someone
           | promises you a future money transfer, you can't be sure that
           | they will actually deliver the way you can when you have
           | their check in hand.
        
             | mbesto wrote:
             | > I don't feel comfortable giving my bank details to random
             | people.
             | 
             | What specifically makes you feel uncomfortable? If the
             | person is truly "random" then guessing your account number
             | is just as "random", no?
        
               | maratc wrote:
               | > What specifically makes you feel uncomfortable?
               | 
               | The thought that they can call my bank, impersonate me,
               | and drain my account with no recourse for me. That should
               | be much harder if they don't know my bank details to
               | begin with.
        
             | kevincox wrote:
             | Checks have your bank details on them. It's the funny
             | numbers at the bottom.
             | 
             | If they didn't how would the receiving bank be able to get
             | the money from your account?
        
               | maratc wrote:
               | When I want someone (who needs to pay me) to give me the
               | check, my bank account details are not supplied to them.
               | I just deposit their check. The check has _their_ bank
               | details printed on it, not mine.
               | 
               | When I want someone (who needs to pay me) to transfer
               | money into my account, I need to provide them with my
               | account number.
               | 
               | In the first case, my bank details are kept private, but
               | in the second case, not so much.
        
               | shortcake27 wrote:
               | In Australia you can make instant bank transfers using
               | phone numbers, email addresses, ABNs etc. Although I've
               | never been too bothered about giving out my bank account
               | details - they're designed to be public.
        
           | mindslight wrote:
           | Okay, but what happens if your device(s) _have_ been
           | compromised, and a payment is misdirected?
           | 
           | From the perspective of suffering large bureaucracies,
           | procedures with obvious possibilities of failure have an
           | advantage in that the bureaucracy will have to entertain the
           | idea that something exceptional happened, rather than simply
           | running your edge case under their steam roller.
           | 
           | I admit this might be a very USian view, as we have extremely
           | unaccountable bureaucracies here.
        
             | adriancr wrote:
             | > Okay, but what happens if your device(s) have been
             | compromised, and a payment is misdirected?
             | 
             | File a police report, same as in article with washed
             | /rewritten check...
             | 
             | Then figure out how you got compromised so it doesnt happen
             | again.
        
               | maratc wrote:
               | The only difference from the check fraud is this: since
               | the fraudsters -- having the password and OTP -- are
               | _indistinguishable from you_ , the bank may not return
               | your money (out of his pocket). And since the money was
               | already cashed out, there's nowhere to get it back from.
               | Bottom line, you will eat the damage.
        
               | adriancr wrote:
               | How is this different from washed check?
               | 
               | That is also 'indistinguishable from you', check is valid
               | and has your signature.
               | 
               | In both cases you have to hope that funds can be clawed
               | back.
               | 
               | The author does point that it took 3 months to get funds
               | back and it would have been difficult if he could not
               | prove checks as fraud.
               | 
               | I would also rate difficulty of grabbing otp and password
               | as more difficult then intercepting an envelope. (outside
               | cases where people willfully give them away to 'tech
               | support'... in which case they might as well write a
               | blank check)
               | 
               | Police already being aware of 30+ cases in author's
               | context does say its widespread issue even for savvy
               | persons. I could fall victim by simply mailing a check,
               | whereas I can't imagine having my bank account hacked.
        
               | maratc wrote:
               | > How is this different from washed check?
               | 
               | I've pointed out the difference: banks, police, and
               | courts understand check fraud. They don't understand
               | account takeovers, as these are much more complicated.
               | They are much more likely to side with you on a case they
               | understand, and reinstate you, and you need them to side
               | with you if you want your money back.
               | 
               | There even may be a law that in the case of check fraud,
               | the customer should be made whole. I seriously doubt
               | there is such a law in the cases of email takeover.
               | 
               | > The author does point that it took 3 months to get
               | funds back
               | 
               | As opposed to the cases where it took people much longer
               | and they did NOT get their funds back?
        
               | adriancr wrote:
               | > banks, police, and courts understand check fraud.
               | 
               | How do they prove its fraud as opposed to you reneging on
               | a valid check?
               | 
               | You fail to realise same issue is in both cases.
               | 
               | Same procedures work in both cases.
               | 
               | If police are willing to entertain a check signed by you
               | is fraudulent they should be willing to do the same for
               | epayments.
               | 
               | They do that by checking the other party of the
               | transfers, if its known scammers, then in both cases you
               | get your money back. If not... tough luck for both check
               | and payment.
        
               | maratc wrote:
               | > How do they prove its fraud as opposed to you reneging
               | on a valid check?
               | 
               | "Here is the picture of the check that I put in the mail"
               | 
               | > they should be willing to do the same for epayments.
               | 
               | Leaving "should" aside, sadly this is not how it works in
               | practice.
        
               | mindslight wrote:
               | > _If police are willing to entertain a check signed by
               | you is fraudulent they should be willing to do the same
               | for epayments._
               | 
               | The police, along with bank employees, generally aren't
               | great at simultaneously entertaining multiple
               | possibilities. Rather they rely on crude pattern
               | matching, with regulations to protect your rights. If a
               | bank is able to close your case as a matter of "user
               | error" and move on, it is likely to do so.
               | 
               | You have blown up this thread asserting the complete
               | equivalence of two things that are apparently very
               | similar in the society you are used to, but not in
               | others. In the US, there have been plenty of cases of
               | people having to fight their bank because of forged
               | transactions on some new "100% secure" digital scheme -
               | the all too common trope of humans believing computers as
               | authoritative sources rather than critically examining
               | their workings. So, please enjoy your society where you
               | can rely on the system to behave reasonably in the face
               | of newer technology, and please stop trying to gaslight
               | those of us who can not.
        
               | adriancr wrote:
               | > The police, along with bank employees, generally aren't
               | great at simultaneously entertaining multiple
               | possibilities.
               | 
               | Are you basing this on something other then assumptions?
               | 
               | If you go to the police and say you are a victim of fraud
               | they will help, how it happened is secondary.
               | 
               | Why so little faith in authorities?
               | 
               | > You have blown up this thread asserting the complete
               | equivalence of two things
               | 
               | What I did say is police should help you if you are a
               | victim, how it happened is secondary. That is on top of
               | saying checks are a lot more insecure and its a lot more
               | difficult if not impossible to fall victim with
               | alternatives.
               | 
               | > stop trying to gaslight those of us who can not
               | 
               | You can enjoy the alternatives, just search for them.
               | (one of the banks I'm using is revolut which is in the
               | usa too and easy to set up on your phone...)
               | 
               | As for gaslighting... That's just incredulity towards
               | dismissiveness... If it seems like bad faith, it's not,
               | surprised it would be interpreted as such so I'll stop.
        
               | maratc wrote:
               | > Why so little faith in authorities?
               | 
               | I have dealt with the authorities on the account of
               | fraud. My little faith in them comes from experience.
        
               | mindslight wrote:
               | I really hate making narratives about race and class and
               | privilege, rather than just sticking to the general
               | concept of rights we should uniformly enjoy, but that is
               | an example of one of the major reasons police cannot be
               | universally counted on to help.
               | 
               | You yourself admit this when you throw out the following,
               | as if it is a correct and just answer:
               | 
               | > _They do that by checking the other party of the
               | transfers, if its known scammers, then in both cases you
               | get your money back. If not... tough luck for both check
               | and payment._
               | 
               | So if you appear to be more dodgy than the account opened
               | by whomever defrauded you, you're just out of luck? And
               | that's a sensible outcome?
               | 
               | > more difficult if not impossible to fall victim with
               | alternatives
               | 
               | You continue to say this as if it's an unquestionable
               | benefit, when the point of this entire thread is there is
               | a _downside_ to people generally thinking things like
               | this.
               | 
               | > _and easy to set up on your phone_
               | 
               | A phone? One of the least secure types of devices, that's
               | easily lost or stolen due to carrying it everywhere?
               | That's really your suggestion?
               | 
               | Envision this scenario - you are walking down the street,
               | get jumped, your attackers force to you transfer a decent
               | sum to them, authenticating the transaction using your
               | bank's most advanced anal probe technology. You go to the
               | police, they actually do the work of questioning the
               | person whose account the money went to, who says that the
               | payment was for buying a used phone from them on
               | Craigslist. The police think this sounds an awful lot
               | like a euphemism for drugs, but don't have any evidence
               | to investigate further, so they just conclude they'd
               | rather not help you rip off your dealer and send you on
               | your way. You talk to your bank who says the transaction
               | looks fully authorized, the police don't think there has
               | been a crime, and oh by the way even if you were jumped
               | you still shouldn't have pressed send if you didn't want
               | to lose the money. This is the type of bureaucratic
               | nightmare that's created when a model becomes
               | unassailable.
        
               | fsh wrote:
               | In Europe, banks, police, and courts do understand
               | account takeovers. They have roughly the same
               | consequences (a lot of faffing around with the bank), but
               | are much harder to pull off than check fraud. I really
               | don't see a downside.
        
               | Amezarak wrote:
               | By law, the bank is liable for accepting a forged check,
               | not you. They are required to reimburse you unless you
               | did something very careless.
               | 
               | https://www.helpwithmybank.gov/help-topics/fraud-
               | scams/forge....
        
               | adriancr wrote:
               | surprisingly, they should also refund you for fraud,
               | identity theft, etc...
               | 
               | Under the same conditions - that you haven't acted
               | 'grossly negligent'
               | 
               | https://www.citizensadvice.org.uk/debt-and-
               | money/banking/ban...
        
         | trollied wrote:
         | >On another note, checks charge 0% commission: to pay someone
         | $5, you need $5.
         | 
         | I can make a direct bank transfer "faster payment", which
         | usually takes a few seconds to arrive in the destination
         | account, for a fee of PS0.
        
           | maratc wrote:
           | > usually takes a few seconds to arrive in the destination
           | account
           | 
           | This also means that whoever takes over your account, can
           | send the money out and cash it in very fast.
           | 
           | This _of course_ would never happen to me or you, but
           | happened to a relative of mine who got a call from  "their
           | bank security" and then were directed to install a "security
           | check app" (remote control tool), and change their password
           | in the banking app. The thieves then got off with money that
           | they transferred out in a matter of seconds, with no
           | recourse.
        
             | adql wrote:
             | They need to take over the account, vs fake a bit of paper
        
               | [deleted]
        
             | Nextgrid wrote:
             | > a relative of mine who got a call from "their bank
             | security" and then were directed to install a "security
             | check app" (remote control tool), and change their password
             | in the banking app
             | 
             | Presumably you want their money to be returned, but would
             | you want the same if it was physical thieves pretending to
             | be the alarm/security company that went in to "repair" the
             | physical safe and made off with all its valuables? Would
             | you still want the money to be returned (ultimately
             | subsidised by all other customers of the bank or the
             | taxpayer) if someone physically withdraws all their money
             | in cash and hands it over to someone who pretends to be a
             | bank employee and has a convincing name tag?
             | 
             | Looking at it from the bank's perspective, the user
             | willingly delegated their identity to the scammer by
             | voluntarily handing over control of their authentication
             | instrument. There is not much the bank can do in this case
             | that wouldn't also hinder legitimate usage - this may have
             | very well been a legitimate transaction for buying a
             | car/house deposit/etc.
             | 
             | FYI, there is recourse against authorised push payment
             | fraud, but it's a goodwill scheme that most banks
             | participate in as opposed to a legally mandated feature.
             | Nevertheless, it's worth trying out.
        
         | ghaff wrote:
         | >On another note, checks charge 0% commission: to pay someone
         | $5, you need $5.
         | 
         | I sometimes lead weekend trips for an outdoor organization and
         | for quite a while even after various direct electronic payment
         | arrangements became available, most leaders stuck with checks
         | because there tended to be fees associated with other types of
         | transactions.
         | 
         | I assume dealing with check fraud has become pretty
         | bulletproof. I bought a car for "cash" last summer and I
         | surprised I could just write a check for the post-deposit
         | balance when I picked up the car. I've always had to go to my
         | bank for a cashier's check in the past.
        
           | mindslight wrote:
           | For the dealer, there are two failure modes. The first is you
           | are who you say you are, but your personal check bounces.
           | Good standing in the financial surveillance databases
           | alleviates this concern, as it shows that if your personal
           | check does end up bouncing you will rectify the problem
           | rather than trying to play coy. I'd guess someone with a low
           | credit score would still have been told to bring a bank check
           | to eliminate the credit risk.
           | 
           | The second is that the buyer has supplied a fraudulent
           | identity, and forged check. But checking the buyer's ID will
           | get the dealer most of the way there, and bank checks can
           | still be forged. Furthermore, a car is a titled asset where
           | ownership is transferred to the identity supplied. To commit
           | a successful fraud, you'd have to pass a bad check, take
           | possession of the car, and then _part it out_ like it 's a
           | stolen car (because it is).
        
       | bayindirh wrote:
       | This is why Uniball has SuperInk, and Noodler's has Bulletproof.
        
         | puffoflogic wrote:
         | Bulletproof is pretty dangerous stuff though. Granted, I never
         | had any issues with it when I was using it to write rent checks
         | monthly, but I think long term it's likely to require a carpet
         | replacement or two!
        
       | MerelyMortal wrote:
       | My bank allows me to have multiple checking accounts. I have
       | money direct deposited in one account, and I transfer over just
       | as much money as I need for checks into another account, and
       | transfer over just as much money as I need for autobilling into a
       | third account.
       | 
       | I trust the entity that does the direct deposit, otherwise I
       | would set up a fourth account just for that.
        
       | kylehotchkiss wrote:
       | One thing I dislike is the inability to disable ACH for a given
       | account. I really want to use an account for safekeeping that
       | can't have a check or ACH transaction run against it, rather I'd
       | have to use banks internal tool to move funds. Does this exist?
        
       | xbeta wrote:
       | What's the Americans obsession with checks? I worked and lived in
       | other countries , including Asia, Europe and Latin America. Most
       | of them moved on to digital payment (especially China) where I
       | found the US and Canada still heavily relied on a piece of paper
       | to process a large amount of funds with no security.
       | 
       | In US, I realized even buying groceries they accept checks
       | written at the counter.
       | 
       | Why can't the US just move on from checks?
        
       | pettycashstash2 wrote:
       | Check writing is very common and embedded in American culture.
       | Yes there are risks, however there are more risks with scams with
       | VENMo, PayPal, cash app, app du jour. yes more people are moving
       | to these services , but checks are still needed for many formal
       | transactions: ex purchase a home, or fill up my kids lunch
       | account without being charged A CONVeniance fee.
        
         | hnbad wrote:
         | I was going to say that as a German writing a check to buy a
         | home feels absurd but given all the other (legal) transactions
         | involved (including taking out a loan) boil down to signing a
         | lot of paper, I guess it wouldn't even really stand out much.
         | In fact when I took out a loan I had to write out my bank
         | account details by hand, so this was kind of the reverse
         | experience of writing a check.
         | 
         | It just feels extremely fussy for regular recurring expenses
         | like rent and utilities. On the other hand, transactions on
         | personal accounts are free with most banks (not so for business
         | accounts but the cost is negligible) so there would be no
         | benefit to doing it that way.
        
         | ghaff wrote:
         | I'm sure a lot of it is that I'm used to them. But, for the
         | most part, checks either written by myself or by my bank via
         | their web site work pretty well with a few exceptions.
         | 
         | For an individual, receiving especially a large check in
         | exchange for something you're selling carries risk that you
         | can't wholly mitigate. (Maybe some of the systems available to
         | merchants are available to individuals who need something like
         | this once in a blue moon--but I've never heard of such.)
         | 
         | Another case is chasing down checks for people who have signed
         | up for some activity and/or handling last minute waiting lists
         | etc. I dealt with this sort of thing for many years and
         | electronic transfers are a lot less hassle.
        
           | devilbunny wrote:
           | > receiving especially a large check in exchange for
           | something you're selling carries risk that you can't wholly
           | mitigate.
           | 
           | I mean, if you accompany them to their bank, and have them
           | issue a cashier's check, you're definitely getting paid
           | unless the entire bank is insolvent, because you're not
           | counting on the check clearinghouse to handle the whole
           | matter - the bank is staking its own reputation on
           | willingness to pay.
        
             | ghaff wrote:
             | Which adds a ton of friction to the transaction. For that
             | matter you can require them to pay you in cash.
             | 
             | My point is that, historically, personal checks were the
             | default for a lot of person to person transactions in the
             | US but they carried some risk--depending on the situation.
        
       | Overtonwindow wrote:
       | I am genuinely surprised people in America are still using
       | checks. I can't speak for the rest of the world, but... A check?
       | If you have checks laying around, you should destroy them. If you
       | need something like a check, get a money order.
        
         | jjav wrote:
         | > If you need something like a check, get a money order.
         | 
         | That would be silly. So now intead of being able to quickly
         | write a check on the spot for free, you'd expect me to go to
         | the post office (or other place that sells money orders), stand
         | in line, pay extra for it? That doesn't make any sense neither
         | from convenience nor cost perspective.
        
           | Overtonwindow wrote:
           | Yes. How often do you use checks? Do you even know where they
           | are?
        
         | sneak wrote:
         | I can write a check in my home or office, put it in an envelope
         | with a stamp, and put it in the outgoing post, all without
         | going anywhere or paying anyone. I can complete the whole
         | payment task in 5 minutes.
         | 
         | Money orders have a fee and require time and gasoline to go
         | somewhere to get them. In 5 minutes I haven't even arrived at
         | the nearest location to purchase a money order.
        
           | adriancr wrote:
           | In the EU I can do instant payments from phone... no need to
           | even write the check, get an envelope, buy stamps, going out
           | to mail it...
           | 
           | It would also arrive instantaneously on the other side if
           | done during business hours...
           | 
           | No fee...
           | 
           | If i need to transfer to mates i just look them up from phone
           | contacts and send money... Or they can send a payment
           | request... or show a qr code that i scan...
        
             | Tor3 wrote:
             | > In the EU I can do instant payments from phone...
             | 
             | ^ This. I'm not sure if this is actually EU wide yet.. but
             | there are several payment systems available, which aren't
             | AFAIK yet usable across countries or at least not many
             | countries. They're in any case members of the European
             | Mobile Payment Systems Association. The goal is to make an
             | EU/EEC-wide mobile payment system.
             | 
             | Unlike Paypal, Venmo etc. these are directly managed by the
             | banks, i.e. nothing like the horrors you sometimes hear
             | about from those private companies. With the variant I use
             | I just need the/a phone number from the recipient, I enter
             | it in my app, I see a name come up, I pay (with a pin),
             | either directly from a bank account or from e.g. a credit
             | card - I can choose at pay time. So, for that example where
             | you need to pay someone doing garden work for you you don't
             | hand over a check, you simply ask for the phone number,
             | enter the details, show the guy "Is that you?", if "yes",
             | then pay, show the guy the receipt on your phone, deal
             | done. Instant, if it's paid from your account, or "Real
             | Soon Now" if from your credit card (the transaction will
             | fail if you don't have the credit - you don't get a receipt
             | to show. You do get an instant receipt if your credit card
             | works, so there's no doubt on the receiver's end that the
             | money will come).
             | 
             | Very convenient. Works in lots of shops too, and, as it's
             | free up to a certain amount, and you only need a phone
             | number you don't have to invest/rent anything, as in
             | getting a card reader. When that's said, until this became
             | popular you could more often than not use a credit card for
             | _anything_ including flea market sellers, parking meters,
             | everything. The only limitation I 've run into is with, of
             | all things, doctor's offices where their payment machines
             | for some reason only accept bank (direct debit) cards, not
             | CC. The dentists accept everything though, and everybody
             | else accepts everything too. But the phone payment is so
             | extremely easy, and safe, that it's taking over everything.
             | Splitting a bill at the restaurant? Phone transfer. Someone
             | forgot their credit card at the gasoline pump? Phone the
             | amount to someone who's got a CC and then the person with
             | the CC can fill up the car. I do prefer contactless CC
             | payment in shops though.
        
           | mistrial9 wrote:
           | a check gives transaction control to the parties directly
           | participating.. a check can be physically held on private
           | property. Why people cry out that this is "ancient" just says
           | to me that people are conditioned to depend on outside
           | companies for every aspect of financial life, minute by
           | minute.
        
             | jameshart wrote:
             | A check is literally an instruction to a bank to talk to
             | another bank and get some money, a process which, in the
             | US, they usually complete by sending the check to a federal
             | reserve clearinghouse. In what way does that give the
             | parties directly participating in the transaction
             | independent 'control'?
        
               | mistrial9 wrote:
               | clearing the check is centralized obviously.. Think for a
               | minute about the sequence of steps of a transaction.
               | Payment for ________ upon the completion of _________; a
               | third party escrow; conditional transactions of every
               | flavor.
        
               | jameshart wrote:
               | I guess by 'independent' you mean that with physical
               | checks people are able to make up kind of 'folk
               | protocols' for transactions involving steps like 'party x
               | holds on to a check written by party y'. - without the
               | banks having to know that that's what they're doing, or
               | having to involve some third party to handle that like
               | PayPal or someone?
               | 
               | That seems like a pretty weak argument for checks. The
               | range of cases where those processes are useful, in terms
               | of mutual trust (or lack thereof), quantities of funds
               | involved, etc, seem pretty narrow. Like, I don't trust
               | you enough that I want to ask you to cut a check in
               | advance, and I know you don't trust me enough to not cash
               | it right away so we're going to have someone else hold
               | it... but I trust you enough not to cancel the check, and
               | that you'll be holding sufficient funds so that when I do
               | get the check I know it will actually clear...
               | 
               | Surely we'd be better off using a proper escrow service
               | for that?
               | 
               | I get that pre-electronic-banking this sort of folk-
               | banking was all people could do but it should be easy to
               | do this sort of thing _better_ electronically
        
               | mistrial9 wrote:
               | weak => a check can be held while the electricity is out;
               | while someone is having a health emergency; while someone
               | changes their mind, their plans, their decision
        
               | mindslight wrote:
               | OP overstated the case as being free of centralized
               | parties, but checks do give individuals more rights -
               | checks have been around long enough that even the US has
               | had to develop sane regulations around them. Whereas
               | digital payment services can just send you a text message
               | saying "your whole account is frozen. see you in binding
               | arbitration!". Maybe that will change in five decades,
               | but it doesn't help us now.
        
               | jameshart wrote:
               | It's interesting that I guess I'm so used to reading
               | takes on fintech touting 'independence' and
               | 'decentralization' coming solely from a libertarian
               | perspective which would assume that 'government'
               | involvement was inherently centralized, it didn't occur
               | to me to consider that OP might actually believe in
               | society, and consider law enforcement around check fraud
               | and regulations on banks as something that _enables_
               | individual freedom.
               | 
               | Good reminder that sometimes it's possible to read more
               | into what someone's saying than is there in the words.
        
               | mindslight wrote:
               | Well I can't speak for OP, but there are aspects of
               | checks that are decentralized regardless of how brashly
               | libertarian your perspective is. Like the idea that you
               | yourself are effectively creating your own quasi-currency
               | note by writing on a piece of paper, regardless of the
               | machinery making it so that can work is more centralized.
               | 
               | In general, there is much libertarian thinking that
               | shortsightedly focuses on the unilateral "exit" without
               | thinking about what comes next. It's a reaction to how
               | complex and overbearing our institutions have become,
               | spurred on by capital looking to digest the proceeds. I'm
               | a libertarian, but I recognize that it's ultimately a
               | yin-yang - if there is a "completely free" power vacuum,
               | some other power will often fill it, creating a de facto
               | government by another name - one that generally won't
               | have any mechanisms of accountability. The approach of
               | defining rights axiomatically simply does not work, due
               | to the contradictions created by layered complexity. An
               | example of how this plays out after the first step is the
               | current web 2.0 catastrophe. The first amendment
               | definition of free speech may be necessary, but it is not
               | sufficient - unaccountable companies have consumed the
               | power vacuum at scale, digested it, and spit it back out
               | in terms of heavily editorialized spaces that we still
               | try to use as if they're public venues.
               | 
               | (And just to be clear on my immediate practical stance, I
               | think the current "free speech" marketing campaign of
               | Twitter et al is utterly specious. The problem is the
               | amassing of such power in the first place, due to the
               | centralizing technologies webapps are built on. Changing
               | the flavor of the Kool-Aid doesn't fix the fundamental
               | problem.)
        
           | bbbbb5 wrote:
           | >I can write a check in my home or office, put it in an
           | envelope with a stamp, and put it in the outgoing post, all
           | without going anywhere or paying anyone. I can complete the
           | whole payment task in 5 minutes.
           | 
           | Is that better than logging into your online banking, making
           | an instant transfer? No need to go anywhere or pay anyone.
        
             | [deleted]
        
             | jjav wrote:
             | > Is that better than logging into your online banking,
             | making an instant transfer? No need to go anywhere or pay
             | anyone.
             | 
             | If I have their bank routing number and account number,
             | sure I can do that (then it's effectively the same thing as
             | a check but without the slip of paper). But I don't always
             | have that info particularly for informal one-off payments
             | (e.g. yard cleaner that came to haul debris away) so it's
             | easiest to hand them a check.
        
             | sneak wrote:
             | Every time I do that to a new recipient I have never paid
             | before (especially when my client IP is in another country
             | (where I spend more than half each year), but also even
             | just in the US), Chase bank locks the entire account,
             | including all debit and credit cards, and demands an in-
             | person (in USA) visit with ID to unlock it, because US
             | retail banks have not figured out unphishable web
             | authentication yet.
             | 
             | Paying a new person is at a minimum a 3 hour process using
             | online payments for me if they don't accept credit card
             | payments.
             | 
             | Also, my checks don't have my full name or billing address
             | on them. Credit card payments require disclosing at least
             | part of these (at a minimum, billing address zip code) to
             | the payee. Wire transfers disclose the full name on the
             | account. I want to send money, not PII.
        
               | adriancr wrote:
               | find a better bank... Revolut has been great for me so
               | far, seems to be in the usa as well, check them out at
               | least for transfers
               | 
               | > Also, my checks don't have my full name or billing
               | address on them.
               | 
               | Return address on envelope does...
               | 
               | Also, aren't you worried someone will intercept check
               | like in article and rewrite it?, non issue with
               | electronic payments
        
               | ghaff wrote:
               | In fairness, you don't have to put your return address on
               | the envelope.
               | 
               | Historically, places could be fussy about accepting
               | checks without an address although I expect that's not
               | generally an issue today. (Of course, lots of other ways
               | to get someone's address especially if they own a house.
               | It's public information in general in the US.)
               | 
               | But, yeah, I've never heard of this account locking
               | thing. I can go to my major brick and mortar bank's web
               | site and add a new payee in 30 seconds. Done.
        
         | drukenemo wrote:
         | Most countries in Western Europe and South America (that I know
         | of) have stopped using checks at least 10 years ago.
        
           | debesyla wrote:
           | And Baltic countries (like Lithuania) never used checks at
           | all - now it's only instant and free SEPA bank transfers.
        
           | alkonaut wrote:
           | 25 I'd say. I stopped using cash 10-15 years ago. I mean
           | entirely, no exceptions.
        
         | zippergz wrote:
         | Last time I had a plumber at my house on short notice, they
         | required payment on site and didn't take credit cards. Are you
         | suggesting I keep large piles of cash sitting around for such
         | occasions?
        
           | [deleted]
        
           | throwaway98797 wrote:
           | i find keeping a grand enough to cover most emergencies,
           | without being so much that i'm worried for it.
        
             | MerelyMortal wrote:
             | It then seems reasonable to store the checks in the same
             | place one would store a grand of cash.
             | 
             | (That's where I keep my checkbook; I only just keep a
             | single, blank, folded-up check in my wallet for the
             | unexpected need.)
        
               | mindslight wrote:
               | Actually with the way bank regulations around check fraud
               | works, timely knowing (/reporting) that your physical
               | checks have gone missing is important, so you do not want
               | to hide them out of the way. Despite being just pieces of
               | paper, there are different regulations depending on if a
               | fraudulent check was created from one of your bona fide
               | checks, or whether it was forged from whole cloth.
        
           | alkonaut wrote:
           | Don't they normally send an invoice?
        
             | toast0 wrote:
             | My regular plumbers are happy to send invoices, but
             | emergency plumbers tend to want payment at time of service.
             | Of course, if my regular plumbers are available on short
             | notice, I'll use them, but sometimes you can't wait.
        
           | adql wrote:
           | Leasing a terminal costs around $15 here so many handymen
           | just... have it.
           | 
           | The worst case you can just get to the closest ATM.
        
           | scatters wrote:
           | Why wouldn't you pay by direct transfer?
        
       | lordfrito wrote:
       | I personally experienced check fraud about 7 years ago. 4 fake
       | checks, $6,500 stolen. Fake checks looked real to me, as did my
       | signature. Was confusing to me as the signature looked like mine,
       | I did a triple take trying to figure out if I had written them.
       | Upon further inspection the signature on all 4 checks was
       | absolutely identical, my signature looks slightly different every
       | time I sign, but these 4 were identical in every way (overlaid
       | them in an image processing tool to convince myself).
       | 
       | Figuring they photocopied the signature from an existing check, I
       | went through my archive of cancelled checks until I found a
       | perfect match for the signature. Turns out the signature was
       | copied from a check that was written to a handyman for some
       | maintenance work.
       | 
       | Brought this info to the police and the bank. I don't know if
       | they did anything with it, as they're not allowed to discuss
       | details with me.
       | 
       | Anyhow, long story short, took 3 months, but the $6,500 was
       | eventually returned to me. Much better experience than crypto!
       | 
       | Lastly, I had to close the checking account for fraud and get a
       | new one. When I asked about ordering new checks, the bank manager
       | admonished me "haven't I learned my lesson" and not to ever use
       | checks. All of your personal information, address, and bank
       | account # are in one place he said.
       | 
       | I told him it's terrifying when your bank manager tells you not
       | to use checks on the checking account his bank offers.
       | 
       | I write very few checks now. Thankfully most transfers can now be
       | done digitally (and without crypto I might add).
       | 
       | Sign of the times I guess.
        
         | tobyjsullivan wrote:
         | The recurring comparison to crypto is ironic here. The central
         | purpose of crypto is that, when used correctly, it makes
         | exactly this type of fraud impossible. These stories show the
         | fundamental problem with checks is that using them correctly
         | exposes you to the fraud risk.
         | 
         | I'm not pro-crypto or anything. The bar to use it "correctly"
         | is too high to be practical. I'm only highlighting the irony of
         | this particular comparison.
        
           | chrisco255 wrote:
           | Yeah, to me one of the central problems with both checks and
           | credit cards is you have to expose your private keys (your
           | routing num, acct num, address, etc) to make the transaction.
           | In an era of elliptical curve signatures and other
           | cryptography methods, this sort of practice should be done
           | away with altogether, even for non-blockchain tech.
        
             | lordfrito wrote:
             | Great analogy. Agreed, checks are insecure and obsolete
             | technology for the reasons you stated.
             | 
             | It does seem, however, that modern digital payment systems
             | (mainstream, non-crypto) have largely caught up with the
             | times. Your bank password is essentially a private key.
             | It's not foolproof, but the challenge of keeping your
             | password private is no different than keeping your private
             | key private. From an OPSEC standpoint it's a level
             | playfield.
             | 
             | Of course these systems are still vulnerable to social
             | engineering attacks, credential theft, outright fraud etc.
             | These kinds of human problems can't be solved with
             | technology.
             | 
             | The old security holes still exist (check fraud, credit
             | card fraud) as the system continues to support
             | ancient/deprecated payment methods. Eventually they'll be
             | obsoleted. I read a report stating that check use has been
             | declining steadily. In 2000 there were 42.6b check
             | payments, in 2018 there were only 14.5b. I'd say we're
             | getting there. The younger generation embraces the new
             | tech, it's only a matter of time.
             | 
             | If this was 15 years ago, I'd say crypto was providing a
             | solution to a problem. But since then bank systems have
             | caught up, and have additional protections of FDIC,
             | regulations, etc. I'd say that modern digital finance is
             | already largely meeting the promises made by crypto
             | enthusiasts, with none of the downsides.
             | 
             | Put another way, _if_ crypto matures and doesn 't die in
             | flames, it will basically look like one more competing
             | digital payment system to those already offered by TradFi.
             | 
             | People get caught up in the tech, but at the end of the day
             | all that matters is you can use a password to digitally
             | move money. We can do that now. Crypto is ubiquitous /
             | crypto is irrelevant.
        
         | grecy wrote:
         | > _I told him it 's terrifying when your bank manager tells you
         | not to use checks on the checking account his bank offers._
         | 
         | It might be terrifying, but it's good honest advice, which is
         | always worth it weight in gold.
         | 
         | The man is an expert. I would take his advice.
        
         | puffoflogic wrote:
         | > as they're not allowed to discuss details with me.
         | 
         | That would not be true if they actually investigated. This is
         | code for "we don't care"; there was simply a miscommunication
         | here when you did not recognize the euphemism.
        
       | technothrasher wrote:
       | Ok, separate from the fraud, this guy wrote a personal check
       | instead of using the organization's funds to pay a state fee?
       | That feels pretty sloppy for somebody running an organization
       | "dedicated to improving financial literacy." While clearly
       | innocent and done just for convenience, taking short cuts with a
       | 501(c)(3) org is a bad idea. To keep the accounting straight,
       | he'd end up having to get them to do up donation paperwork on it,
       | which removes his goal of not bothering people over a small
       | amount. Otherwise, it's co-mingling of funds.
        
         | pilotneko wrote:
         | He just ate the cost. It's five dollars.
        
         | PopAlongKid wrote:
         | > I decided it was simpler to pay the fee myself, rather than
         | bothering Ben Holland (Treasurer for the Center) to have the
         | Center pay the fee.
         | 
         | But what does Ben Holland say?
         | 
         | Yes, it is very sloppy to say the least. I recently completed a
         | two-year term as the treasurer for a non-profit professional
         | association, and I would have been highly peeved had one of the
         | other board members gone ahead and done this without first
         | "bothering" me.
         | 
         | It is the treasurer's job to make sure essential payments are
         | made and recorded on the books. Also, while my org does both
         | make and receive payments electronically, we also have highly
         | fraud-resistant business-style checks (watermarks etc) for
         | times when check payments were easiest or required.
        
       | owlbite wrote:
       | Moving from the UK to the US a few years ago was like going back
       | in time 20 years in finance tech. No-one supported contactless
       | payment, cards didn't implement it, despite it having been
       | standard tech in the UK for years.
       | 
       | The UK de-facto deprecated cheques in 2011 when the cheque-
       | guarantee scheme was closed, so it was very shocking to need one
       | to rent an apartment in the US. (The UK would just use a bank
       | transfer).
       | 
       | Even with improvements seemingly brought on by covid, the US
       | still seems massively behind the times - for example ACH still
       | takes several days to do a bank transfer that is instant in the
       | UK, and venmo or whatever seems to be overcomplicating it.
        
         | javajosh wrote:
         | Yes, and moving to the EU was like moving forward 20 years. The
         | IBAN system is fantastic! The seller gives you their IBAN
         | number, and you tell your bank to send money to that number. It
         | happens instantly and for 0% commission. There are no routing
         | number/account numbers. (Granted, I never had to deal with
         | fraud so I'm not sure how that goes. I doubt that credit card
         | style charge backs are possible.) It's also interesting that in
         | some parts of Europe (esp Germany) cash is still the normal way
         | of paying, even for large amounts.
        
           | hnbad wrote:
           | > I doubt that credit card style charge backs are possible.
           | 
           | Actually they are, but only for SEPA direct debit (i.e. you
           | giving your IBAN to the seller to authorize a recurring
           | charge). Also I'm not sure if this is automatic or just
           | standard practice but failed SEPA charges will invalidate the
           | mandate, so you'll have to issue a new one if it ever
           | bounces.
           | 
           | Some(?) banks also allow you to reverse a bank transfer in
           | online banking but I'm not sure if this just an "undo" before
           | the transfer has actually gone through or an actual reverse
           | charge. You can also set up recurring transfers in most
           | online banking software for free but again they're not
           | usually reversible like SEPA direct debit payments are.
           | 
           | As for cash payments in Germany: the pandemic led to a lot of
           | retail adoption of debit card payments but if you don't know
           | in advance whether you'll be able to pay by card, it's good
           | to keep cash on hand. Most larger retail stores (clothing,
           | pharmacies, etc) and pricier restaurants take debit cards,
           | grocerers/bakers and non-chain fast food places often only
           | take cash. You probably can't pay for your Currywurst with
           | your debit card but you can pick up your prescription (if
           | it's not fully covered by health insurance) or pay for a
           | fancy dinner. In the latter case they might even take credit
           | cards, if they're particularly fancy.
        
       | MerelyMortal wrote:
       | Apparently a simple line after the spelled-out amount isn't
       | enough, as it's clearly visible on the _low_ resolution scan.
        
         | nerdponx wrote:
         | Indeed. I think the most surprising thing here is that the
         | check was accepted with those horizontal lines left in it.
        
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