I recently heard of a new scam that recently occurred at a closing I wanted to bring to the attention of the readers of this blog. It’s something that I have not seen addressed on any other websites to date upon doing a Google search. I am sure that it will be repeated and will surely soon have an effect on how closings are conducted.
I was told about a closing recently where someone asked the bank attorney to redraw a check that they had received. Without thinking about it, the check was recut and given to this person in exchange for the original check that he was given. This is a somewhat normal occurrence as sometimes errors are made on checks or a party changes his mind about the payee on a check. However, what this person had done was to take the original check outside and deposit it using his cell phone. He then returned and asked for a replacement check, which he would then deposit again.
Based on what is now possible, as people can use their smart phones, whether it is an Iphone or Android or some other variation, to deposit checks, many bank attorneys are going to institute a policy that once a check is cut, it cannot be recut.