elgato
Joined: 24 Feb 2005
Posts: 17231
Location: Texas
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| Posted: Tue Feb 10, 2009 3:35 pm Post subject: Judge shuts down online check service and fraud magnet Qchex |
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Online check issuer Qchex has been taken out back and shot by the Federal Trade Commission and a US District Court for violating federal law. The company has been ordered to halt operations and hand over half a million dollars in ill-gotten gains.
If you're a fraudster who has been making use of Qchex.com to issue checks out of other people's bank accounts, you had better start hunting for a new moneymaking scheme. A US District Court has ordered the online check processing company to halt its illegal operations and to cough up the cash it made from the operation.
The case goes back to September of 2006, when the Federal Trade Commission accused Qchex of violating federal law because the company implemented no safeguards to prevent fraud in its check creation service. Qchex apparently created and sent checks drawn from any old bank account that users claimed were theirs without verifying that they were the owners of said accounts. Unsurprisingly, this made Qchex a shining beacon for scammers from around the globe who used the service to steal money from people's accounts, using those same checks to pay for various goods and services.
more.. link to news article |
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