The Ombudsman for Banking Services has warned consumers not to take bank account deposits at face value, after noting an increase in the number of complaints relating to fraudulent cheque deposits.
Neville Meville, the ombudsman, says anyone who advertises services or goods should look out for con artists. Many sellers have handed over their goods thinking that cash has been paid into their accounts, only to find that the cheque was stolen or fraudulent, and was subsequently rejected by the bank.
Melville says you should not hand over goods on the strength of a deposit slip. People who deposit fraudulent cheques can change the deposit slip to reflect that cash was paid into an account. The bank cannot be held liable in these cases, unless it is found that a teller did not process the deposit correctly.
ATM or internet statements do not differentiate between cash and cheque payments. You often have immediate access to money that has been paid into your account by cheque. However, if the drawer's bank subsequently refuses to honour the cheque, the amount of the cheque (you may have drawn only part of it) will be debited from your account.
When you phone your bank to confirm a deposit, it is important to check whether it was cash or cheque, and to request written confirmation, as verbal assurances can be disputed.
Warning bells should sound, Melville says, if a buyer offers to pay you without seeing the goods, pays the advertised price without negotiation, insists that the goods are delivered to a specific address or collected by a driver, or deposits an amount that is more than the purchase price.