A Broad Definition Of Fraud
In November, my company serves as a third-party intermediary in the offer of a $1,000 line of credit that can be repaid as part of a refund transfer when you do your taxes.
For the line of credit, you need an ID and the final paystub from each place you’ve worked during the year.
I have a client come in who wants the line of credit. She pulls out her ID. It’s a passport, not a driver’s license. That’s a little bit odd but not astonishingly so.
Client: “So, the guy told me I didn’t need my paystub.”
Me: “That’s incorrect unless you’re self-employed.”
Client: “I am. Here, I brought a check.”
She shows me a check with “$4,800” on it.
Me: “What do you do?”
Client: “I keep $720 of it.”
Me: “I’m afraid I don’t understand.”
Client: “So, this guy gives me the checks, I cash them, and I send some of the money on and keep the rest.”
Me: *Pauses* “Okay, so, that’s a common scam. It’s used as a method to launder money. Oftentimes the money is stolen, or the check is fraudulent, and the check is charged back.”
Client: “It’s okay. I’m pretty sure that the guy is legitimate.”
Me: *Pauses again* “Do you have any other jobs?”
Client: “Yes, but I don’t have any paystubs.”
Me: “Why not?”
Client: “Well, my manager went to federal prison for fraud.”
Me: “Is it a W-2 job or another self-employment job?”
Client: “W-2, but I don’t know if I’ll be getting a W-2 this year because the entire management team is in prison. I had been working there for seven years.”
Me: *Pauses yet again* “I don’t think I can process your loan today. Sorry.”
Client: “But the guy on the phone said…”
Me: “Sorry. I don’t feel comfortable processing the loan for you. Perhaps someone else might be willing to. Have a nice day.”