Pompeed wrote:Latest news from a banking insider I trust because his work is on the fraud side of banking: the spike in the level of fraud of late is such that the Fed suggested that the banks report all such activities to the authorities. Names, addresses, phone numbers, account information, SS numbers, attempts etc. of all who have tried to defraud the US Government by use of Fed Reserve routing numbers. It's not as if there's a paucity of evidence! Every one involved left their stinking paw prints all over the place!
I wonder just how many cases the Feds are seeing of these (really) fraudulent documents driven by these (pretend) legal beliefs. It must be a lot to have so much notice going out through so many different channels. I highly doubt that there's a significant amount of success, because this is a pretty simple fraud to detect -- anything hits with certain ABA routing numbers through a retail check clearing mechanism and not via an interbank SWIFT transfer is going to be fraudulent, 100.00% of the time, and as Pompeed points out, the paper trail is absolute and certain, and it's easy to flag in real time.
There are two principles that poots won't understand that are going to govern the future of these fraudsters:
1. The principle of government (in)action: People start to do bad things and don't get arrested due to government (in)action, and they think they're getting away with stuff. But when the government goes in action, it's more of an over-reaction and they swat flies with a sledgehammer. No longer will the Feds shrug this off as the occasional crank; when they convince themselves it's an organized criminal enterprise, you'd be stunned at how much resource they can muster. I've been involved in several white collar crime cases (as a witness only, of course) and the resources the FBI devoted to even the smallest one of these, cross-checking every detail endlessly, is quite stunning.
2. Fraud prevention gets increasingly good at fighting the last war. Remember that these bogus financial instruments started out in the 1980s with the Posse Comitatus movement, and they succeeded initially because bank tellers didn't know better and the systems they were using weren't sophisticated enough to spot bogus payments like "sight drafts" and "lien drafts" immediately. And cases involving those forged documents were rare, and often in small towns where it would be hard to prosecute -- think of the Freedmen in rural Montana, who were big fans of this sort of crime. So given that these nimrods are trying a scheme that's been around for at least a decade, as evidenced by a 2009 LA Times article describing nearly identical fraudulent documents
, the chances their scheme will work are quite small. Protip for poot fraudsters: these days, the only frauds that will work are new and original and exceedingly clever ones, often designed by educated and patient people with an insider's knowledge of how these computer systems work... Poots are often uneducated and are always into magical thinking about quick-and-easy riches, which is not exactly the right personality type for success.