SoCal small business owner lost $14,000 in check washing scam

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People continue to lose millions of dollars to check washing fraud. But there are ways to protect your money.

Phi Dang works at her family owned business selling small appliances to retailers. A vendor recently called her asking about a past due bill. But Dang had paid the bill. And the check - $14,000 - had already cleared her bank account. But when Dang examined the check, she noticed the payee had been changed.Sign up for NBC LA's News Headlines newsletter.

Dang said she reported the fraud to her bank, Wells Fargo, as soon as she learned what happened. But she said Wells Fargo told her she wouldn’t get her money back because she had to report the fraud within 30 days. Carola Sanchez-Adams is a senior attorney with the National Consumer Law Center. She said consumers often don’t learn they’re victims of check fraud until it’s too late.

But banks can shorten that time frame per their account agreements. And Sanchez-Adams says most of them do. She said many banks give you just 30 days to report fraud.

 

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