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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Readers' Choice Homelife Magazine Joy Magazine Neighborhoods Employment Guide Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend September 30, 2006 Internet paper chase: Beware of bogus money orders, cashier's checks Web-based buying leads to major rip-offs; losses are hard to recoup By GREG STILES Mail Tribune When Monty Derhak sold a vintage guitar and amp over the Internet a few weeks back, he figured the safest form of payment was a money order or cashier's check. However, the 48-year-old Medford musician was in for a rude awakening. The Ontario, Canada, buyer obliged sending a money order for about $8,000, which Derhak took to his bank. Two weeks later, he got a statement from Washington Mutual indicating the money order was worthless. Derhak went to the police department and found he was among a growing number of victims who have accepted counterfeit money orders and cashiers checks. Worse yet, unlike credit card fraud, there is no recourse to recoup lost funds, and the perpetrators have long left Web sites, e-mail addresses or physical mail drop locations behind. "I thought cashiers checks and money orders were the safest way to go, because if you have a PayPal account someone can still hack it," Derhak says. "I don't know how many minutes I've racked up on my cell phone with one person at the bank referring me to another. Advertisement "Once I went online, I saw this has happened to many people." How many? To the tune of millions of dollars, say bankers familiar with the rapidly growing fraud, typically connected to Internet transactions. "It is a snowball," says Steve Erb of Medford, Wells Fargo's Southern Oregon district manager. "I've confirmed it with my operations support that we're seeing it at least once a day in Jackson County; to me that's amazing." Spokane-based Sterling Bank operates in four states and few places in its network are more prone to phony money orders and cashiers checks as its coastal region that takes in Jackson County. "There are millions of dollars involved in our little institution," says Sterling Bank's Karen Mirich, fraud investigation officer for Oregon. "Most of it is in regards to selling on the Internet or local newspaper." One of the major ways Internet sellers are taken is when buyers send money for more than the purchase price and ask the overpayment to be sent back via Western Union. "I think we're a trusting society and a little naive," Erb says. "The American banking system is drawn on trust. If someone brings us an item, we trust it will be good on the other end. Bad guys have figured that out." He reinforces the long-held notion that money orders and cashiers checks are "as good as gold, if the bank issues them." On the other hand, endorsing a cashier's check or money order means a customer is guaranteeing the item they are depositing or cashing is legitimate and that the funds will be paid to their bank. It can take two weeks or longer for a money order or cashiers check to clear and foreign instruments can take longer. "We as banks can help decide if a transaction needs further scrutiny," Erb says. "Based on what customers are sharing and not sharing, the bad guys are telling the (endangered party) don't tell your bank. We're more than willing to have a conversation so that we can provide our expertise and experience." Monica Weber, district operations manager for KeyBank, says technology makes it easy for counterfeiters crank out phony money orders and checks. "People are getting Versa Checks or MyCheck (software) and going to an office supply store where they buy (blank check) stock for $60," Weber says. "Then they print them off on their home computer with the bank's address and names. The client comes to the bank and finds out they're counterfeit." She says the amount usually falls below $5,000. "In the beginning, we were not catching the lower-dollar amounts," Weber says. "Then we started getting a few back and now when a client brings in a check, we're looking for it." Reach reporter Greg Stiles at 776-4463 or at [email protected] Don't get burned Don't do business with sellers you can't identify: Don't give out your personal information, such as a Social Security or credit card number, until you've verified the legality of the business, seller and its payment service. Never give out your bank account numbers. Save all transaction information, confirmation numbers and receipts. Learn what buyer protections the seller offers. Don't assume one seller's protections are the same as another's. Source: Wells Fargo Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Men's Clothing Fundraisers UK Homeowner Loans Discount Hotel Reservations Send Flowers Casinos Canada Texas Electric Choice Compare Electric rates in Texas Windermere Van Vleet Trunks, Footlocker Online poker at AbsolutePoker.com