THE BANKRUPTCYSERVICES.NET NEWSLETTER
http://bankruptcyservices.net
Bankruptcy Information on the Internet
May 27, 1999 Issue 27
Dan Stanley, Editor
[email protected]
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IN THIS ISSUE
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=> QUARTERLY BANKRUPTCY FILINGS POST SIGNIFICANT DROP
=> CHECK FRAUD - YOU ARE AT RISK!
=> TO AVOID EMBARRASSMENT CONSULT BEFORE YOU FORWARD
=> How to Be Featured as our Guest Columnist
=> Subscribe/Unsubscribe information
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ABI UPDATE
QUARTERLY BANKRUPTCY FILINGS POST SIGNIFICANT DROP
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Data Show Bankruptcies May Be Leveling Off
The total number of new bankruptcies filed during the first
three months of 1999 dropped to 330,784, posting the lowest
number of filings since the final quarter of 1996, according
to data released by the Administrative Office of the U.S.
Courts.
The number of bankruptcies filed during the 12-month period
ending March 31, 1999 totaled 1,419,199, a slight drop of 0.3
percent from the previous 12-month period, when filings totaled
1,423,128. Total bankruptcies for the 12-month period mark the
first decrease since the identical period in 1996.
Personal bankruptcies for the quarter decreased to 321,604
(down by 5.9 percent when compared to the first quarter of
1998), and personal filings for the 12-month period ending
March 31 increased by a fraction of a percent to 1,378,071.
The decline corresponds with a report in Monday's "Wall Street
Journal" that the pace of new consumer debt has slowed, along
with delinquency and charge-off rates. Moody's Investors
Service reports that consumers are paying off outstanding
principal at record levels.
Business bankruptcies continued their decline in the first
quarter, consistent with the health of the national economy,
dropping to 9,180, a 26.0 percent decrease from the same
three-month period in 1998. Business filings decreased during
the 12-month period ending March 31 to 41,128, a 21.9 percent
drop from the previous 12-month period.
To view additional statistics, visit
http://www.abiworld.org/stats/newstatsfront.html.
To view ABI's press
release on the first quarter stats, visit
http://www.abiworld.org/media/newmediafront.html.
Mana @ ABI
[email protected]
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CHECK FRAUD - YOU ARE AT RISK!
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By Les C. Cseh, Sensible Solutions
Copyright (c) 1998, Sensible Solutions
You could be on the hook.
Did you know that the UCC (Uniform Commercial Code)
regulations place responsibility for forgery losses
partially on bank customers, rather than solely on the
banks? But in addition to this exposure, there can be
significant expenses and lost time investigating the
crime, not to mention damage to your credibility and
reputation.
Your only defense is to show that you have taken due
diligence. One way to demonstrate this is by implementing
careful practices regarding your checks. Another is to use
checks with well implemented security features.
How bad is the problem?
The problem is so serious that the banks don't like to
reveal the extent of the problem. Estimates range from
hundreds of millions to 10 billion dollars annually.
In 1991, the FBI tracked over 26,000 cases, but this is
just the tip of the iceberg, because the FBI mostly
focuses on cases where the amount exceeds $100,000. Just
one example comes from The Green Sheet (a publication to
the Financial Services Industry), reporting an incident
where a family had allegedly stolen more than $1 million
from area merchants since 1993 by writing checks on closed
and non-existent accounts at 11 financial institutions in
Indiana and Chicago under 25 different names.
In just 4 years, Northern Trust Bank has detected more
than 3 million dollars worth of counterfeit checks.
What kind of thing do criminals look for?
It is an endless list, but here are some of the types of
things that someone looking to counterfeit or tamper might
look for:
* High volume bank accounts where a fraudulent check can
easily slip through.
* Checks that are easy to reproduce using a color copier.
* Checks that are easy to tamper with.
* Easy access to checkbook or check stock.
What can I do to protect myself?
By protection, I mean reducing the chance of someone
counterfeiting or altering your checks, as well as
reducing your liability when it occurs.
Be aware that is impossible to prevent fraud. But you
can significantly minimize the risk using a two-prong
approach. It is critical that good procedures related to
your check processing are put in place, and that you use
a check that is difficult to counterfeit or alter.
* Reconcile your bank statement promptly. Now that bank
statements are available online, you can do this as
frequently as you feel is necessary for your situation.
* Restrict access to your checkbook/check stock. Ensure
that only trusted staff that need access have it.
* Audit your checks. However, this can be difficult
because often checks are removed from the bottom or middle
of the book or stack.
* Use a custom design. While this isn't an affordable
option for many businesses, look into it. The next best
thing is to ensure that your check supplier uses
comprehensive security features. Remember though that a
custom design is not a substitute for security features.
* Advise your bank branches' officials of the security
features in your checks . in person or in writing (and
keep a copy of the letter on file!).
* If you issue a large number of checks, particularly with
a low amount (e.g. rebate checks), open a separate account
and alert the bank staff of an upper limit for that
account.
The bottom line.
Don't take unnecessary chances. The more security you have
through procedures and choice of check form, the less
likely that someone will tamper with your checks.
Les C. Cseh is the owner of Sensible Solutions, a check
printer operating out of Alexandria Bay, NY and Perth
Road, Ontario. He has been involved in financial documents
since 1985, and had participated in ANS X9B standards
work. He can be reached at
[email protected] and
at 888-85-CHECK. In addition to a variety of secure
checks, Sensible Solutions web site
(
http://www.sensible-solutions.com) offers a non-
commercial section related to check processing issues
called the MICR Repository. Copyright (c) 1998, Sensible
Solutions.
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TO AVOID EMBARRASSMENT CONSULT BEFORE YOU FORWARD
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Last week I got this email.
I am on a lot of listserve mailing
lists and get a lot of good information. So I thought this
was some and had my finger on the forward button when a voice in
my head said, "You better check this out." Here is the email:
"Hi this is pretty cool!
Netscape and AOL have recently merged to form the largest
Internet company in the world. In an effort to remain at pace
with this giant, Microsoft has introduced a new email tracking
system as a way to keep Internet Explorer as the most popular
browser on the market. This email is a beta test of the new
software and Microsoft has generously offered to compensate
those who participate in the testing process. For each person
you send this email to you will be given $5. For every person
they give it to, you will be given an additional $3. For every
person they send it to you will receive $1. Microsoft will
tally all the emails produced under your name over a two week
period and then email you with more instructions.
This beta test is only for Microsoft Windows users because
the email-tracking device that contacts Microsoft is embedded
into the code of Windows 95 and 98.
I know you guys hate forwards. But I started this a month ago
because I was very short on cash. A week ago I got an email from
Microsoft asking me for my address. I gave it to them and yesterday
I got a check in the mail for $800. It really works. I wanted
you to get a piece of the action. You won't regret it."
To check it out I went to the "Infamous Urban Legend" section
of
http://scambusters.org/
and there it was at Number 2:
"Hello everybody,
My name is Bill Gates. I have just written up an e-mail
tracing program that traces everyone to whom this message
is forwarded to. I am experimenting with this and I need your
help. Forward this to everyone you know and if it reaches
1000 people everyone on the list will receive $1000 at my
expense. Enjoy.
Your friend, Bill Gates"
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How to be Featured as a Guest Columnist
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Newsletter advertising is the best way of reaching a highly
targeted audience on the Internet and free advertising is
always the best buy. You probably have some consumer oriented
articles in your files already so why not get some use out of
them.
Dust off one and cut it down to newsletter size (about 500
words but fewer is ok) and send it to me for publication.
If you have additional information on your website you can use your
article to refer the readers there. If you don't have a
website you can refer them to your directory listing.
Send all articles to the Editor:
[email protected]
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Copyright 1999 Bankruptcy Services, Inc.
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Dan Stanley
Bankruptcy Services, Inc.
[email protected]
653 Richmond Road, Amissville, Virginia 20106
