Financial Fraud Money order scheme

financial fraud detection    fraud investigations

This is a criminal case where two criminals are engaged in purchasing a money order and cashing the money order twice!

1. Criminal # 1 purchases a money order from money gram, Western Union or a bank.

2.  After the criminals purchase the money order than they make a copy of the money order.

3. Criminal # 2 writes their name on the copy of the money order.  Leaving the original money order clean without any writings on it.

4.  Criminal # 2 Deposits the copy of the money order via cell phone banking program! All you need is to take a picture of the money order through the electronic cell phone banking program.

5.  At the right timing (typically within 1 day) Criminal # 1 Negotiates the money order by purchasing an item from  craigslist ad, products from a store Or gives it to an acquaintance for exchange of cash for a lesser value.

In some cases Criminal # 1  one goes back to where the money order was purchased and cashes it.

6.  Criminal # 2 receives credit from his bank for the full value of the money order amount.

7.  The victim attempts to negotiate the original money order through the bank. However the money order is returned for insufficient funds since Criminal # 2 has been credited and collected on the money order through their bank’s electronic cell phone deposit program.

This scheme can be conducted through different variations and it definitely works since we have several victims.

Information Former Federal Investigator

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