Farewell the charity cheque scam?
Howard Lake | 27 November 2007 | Blogs
The cheque scam that has been attempted on a number of charities could soon be a thing of the past, if changes by the banking industry take effect. The scam involves sending a large donation by cheque to a charity from a previously unknown donor. The ‘donor’ then contacts the charity to say it was a mistake and could the charity refund part of the sum. Any charities that oblige will find a little while later that the original cheque is a dud, and so end up out of pocket.
According to the BBC (Cheque payments given certainty), “from 30 November, cheques will clear with absolute certainty, six days after being paid in.” Previously banks have always been able to recoup money from a customer’s account, should the cheque prove fraudulent or bounce. This clawback could take weeks to occur, leaving the customer with a nasty shock.
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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.