Commercial new account fraud rears up in Oklahoma

July 23, 2024

There is a new fraud trend hitting Oklahoma financial institutions involving U.S. Treasury checks, ID theft and new accounts.

Losses can be significant as many of these checks exceed $100,000. Please share this information will all areas of responsibility involving new business accounts and check deposits.

Legitimately issued checks are being stolen in bulk. Individuals involved in the scheme travel to various states to register new businesses in the name of the check payees. After the business registration is accepted, the perpetrator will open a new business account and deposit a large dollar U.S. Treasury check. Funds are immediately removed any way possible.

If Treasury determines a check has been paid over a forged or unauthorized endorsement, the Bureau of the Fiscal Service, may reclaim the amount of the check from the presenting bank or any other endorser that breached its guarantee of endorsement (31 CFR 240.8).

Red Flags:

New business account.
Out of state ID.
In-state address (possibly vacant or for sale).
In-state utility bill (possibly fake).
Recently registered business and/or EIN filing.
Check payable to business with out-of-state address.

Using the Treasury Check Verification system will NOT work in this scheme and all security features will be present.

How do you stop this??

Alert your new accounts staff to be aware of this scheme and to bring any suspicions to their supervisor.
Monitor new business accounts opened with a new or recent deposit greater than $10,000 for at least 60 days.
If the deposit consisted of a U.S. Treasury Check, place a hold on the funds pending verification (Google search the business name and reach out to what is probably the legitimate business, with an out-of-state address matching what is on the check).
Use the IRS External Leads Program to submit your concerns/red flags. Hold the funds until a response is received (usually within 48 hours).
If you are a member of crimedex.com, post an alert to the OK MAFIA group to alert others

Victimized by this scheme?

File a complaint at ic3.gov.
Contact the U.S. Secret Service, Oklahoma City Field Office, (405) 272-0630.
Preserve all evidence (original checks, surveillance, etc.).
File a criminal complaint with your local police.
Start your recovery action plan with financial institutions receiving the deposited funds.
Email sharon@oba.com should you have any questions or need assistance.