Bank account flashing. How it works.

[Wayne]

You'll often hear people on anti scam sites discuss bank account flashing. Let's explain what it is and how the scammers do it. The first thing you need to know is that a check (or cheque) paid into your account is only ever provisionally paid into your account. It can take weeks or even months until it's properly checked.

So this is what a scammer does. He deposits a check that is either fake or stolen into your account. The bank provisionally clears it after around 3-5 working days and the money looks to be available. Down the line, they get a much better look at it and sees it's fake, or the person whose check it was that was stolen reports the missing money. Of course at this point the money is long gone and you have to pay it back to the bank. This is why the word "provisionally" has been highlighted in the above paragraph. If a bank waited until the check was completely verified, it could take weeks or months until the money goes into your account, so they release the funds "provisionally" after a few days so that you the customer isn't left waiting all that time. Most checks of course are absolutely fine, and there's never an issue with them. However, a fake check sent to you will cost you a lot more than just the amount it was made out to. If a scammer sends you a check for example for $1000, and says to keep 30% for yourself, you would lose the $700 you sent to the scammer, plus the $1000 the bank is asking you to pay back. On top of this, you may end up implicated in the crime and - worst case scenario - actually sent to prison for a crime you had no idea you were committing.

So what to do? Contact your bank to see if the money was paid in using cash or a check. Cash is fine, but a check is something to be wary of. Better still, never accept or send money to anyone you have only met online if they ask to use your bank account for the transaction. Use PayPal for online transactions instead. Always be sure to check your account by typing the URL into our browser yourself, rather than clicking on a link sent to you in an email.