Qchex was a website that allowed people to create and send
check
Check or cheque, may refer to:
Places
* Check, Virginia
Arts, entertainment, and media
* ''Check'' (film), a 2021 Indian Telugu-language film
* ''The Checks'' (episode), a 1996 TV episode of ''Seinfeld''
Games and sports
* Check (chess), a thr ...
s drawn on any bank so long as they provided the
ABA routing transit number
In the United States, an ABA routing transit number (ABA RTN) is a nine-digit code printed on the bottom of checks to identify the financial institution on which it was drawn. The American Bankers Association (ABA) developed the system in 1910 ...
and account number and a valid email address. The "Qchex" could then be e-mailed and printed out by the recipients.
On September 25, 2006,
United States District Judge
The United States district courts are the trial courts of the United States federal judiciary, U.S. federal judiciary. There is one district court for each United States federal judicial district, federal judicial district, which each cover o ...
William Q. Hayes, responding to a
Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
lawsuit alleging that Qchex's practice of e-mailing personal checks without verifying the identity of the check-writers resulted in widespread fraud, ordered the practice halted.
The FTC said it had received over 600 complaints from consumers who say the practice was used to fraudulently withdraw money from their accounts, including using federal agencies, like the FTC itself.
[
Qchex's website itself advised that people register with Qchex to ensure that "no one else can set up or access your account numbers on the Qchex system."][
In September 2005, the FTC had stated that Qchex's security practices had been haphazard and ineffective. Qchex continued to refuse to add verification procedures, and continued to offer their service despite the FTC's involvement and more than 600 complaints from consumers who reported their accounts as being illegally debited. Sept. 27, 2006 Qchex had suspended service until further notice in agreement and response to an FTC request. The defendants named in this case were Neovi Inc., doing business as Neovi Data Corp. and Qchex.com; G7 Productivity Systems Inc., doing business as Qchex.com; and their principals, James M. Danforth and Thomas Villwock. All the defendants were based in San Diego, Calif.]
See also
* Internet fraud
Internet fraud is a type of cybercrime fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose of tricking victims out of money, property, and inheritance. Inte ...
* Fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
References
External links
Qchex website
* ttp://www.nbcnews.com/id/7914159 Easy check fraud technique draws scrutiny, Article by Bob Sullivan, MSNBC
Finance websites
Internet fraud
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