I found the website for Qchex, and I am interested in the possibility of using the service both as a customer (to send checks) and as a payment method for the on-line purchases of the company I work for. Of course, before doing anything of the sort, I’ve been looking on the web for how secure those transactions can be. I think this is an excelent site to post my question, and get serious and reasoned advice.

I’ve found many complains about frauds committed using Qchex, including the ones on this forum. So far, the frauds seem to fall in two categories:

1- A thief gets hold of a valid bank account, and use Qchex as a method of withdrawing money from it. The money is usually withdrawn by cheating somebody into cashing it; by using some scam method. However, how the criminal obtains the account number doesn’t seem to be related to Qchex itself; he can use a phishing scheme, or steal it in some other way.

2- A scammer sends somebody a forged check, and tricks the victim into cashing it and returning some money to the scammer. In this case, Qchex has nothing to do with the scam; since they don’t verify any account information, the fact that the account is fake is - arguably - not their responsibility. No valid account is affected; unless the victim deposits the check and withdraws the money from his or her account. But Qchex has nothing to do with this transaction.

In summary, I haven’t found so far any reference to somebody complaining that a valid account number has been stolen from Qchex data. This is my question: Has any USER of Qchex has had his or her account information stolen as a result of using Qchex? And keep in mind that if the account number is stolen from the printed copy of the check is not a fault of the service; is the same risk one can have by mailing or handing a personal check.

I will appreciate any comments; but please refrain from advising against Qchex just because “it’s evil” or because “somebody sent me a fake check”. I understand those situations, and I understand people being angry and frustrated, but those comments wouldn’t be the type of opinion I can find useful.

Thanks.

Customer Joe - why would you seriously consider using a product that you know has been used fraudulently? And you admit that QCHECX "does not verify any account information." Now, if you are looking to use a reputable company for electronic bill pay, there are many out there. But I would stay clear of Qchex. Do I think they are evil? No, but I think they have gone a long way to damage the publics perception of electronic bill pay and banking in general.

In scenario #1 above, there is no need for a valid account number, just a valid bank RT# is needed. By the time the check gets returned to the bank of first deposit, the funds are usually long gone.

Several industry publications have detailed the Qchez issues, including that customers have experienced identity theft by someone else using their account and bank information to set up an account at qchex.

Don't know if that answers your question or not...

And I'll weigh in on the complaint comment - Qchex is very choosy about what they post and respond to - they have not responded to serious questions I asked them over a month ago -
And my question to you is - since you have to have a bank account to use Qchex, then why not use your own bank's internet bill-pay - so that all your record-keeping is in one place.

Qchex from bank viewpoint:

I think that you need to consider that Qchex does nothing to protect banks by not verifying their customers. They even tell their customers not to worry about fraud because they can just go to the bank and fill out a form and they get their money back. That money comes from somewhere.

As bank employees it is our jobs to try and protect the bank and its customers from fraud loss. I have yet to see a valid check from Qchex so the tellers at my bank have instructions to notify management whenever they see one.

How might this effect you as a user of Qchex? They make bankers nervous so I think that you will see the people that you send the checks to will have holds put on their deposits if they're accepted for deposit at all. Their bank may also inform them of the fraud that has been associated with these checks. In my opinion that might not be good for your company's reputation. I think that your bank may also watch your account a little more closely because of the fraud associated with these checks.

Any qchex that is presented to us goes to collection, so that will add time to any qchex transaction our institution processes.

OK, I had never heard of QChex till yesterday, and from what I've read here, there are serious problems, but still the occasional honest transaction in the mix too, no? Let me give you my scenario, because I'm really not sure what to do.

I have a ring that I would like to sell (asking $500), so I placed an ad on the local Craigslist, paying close attention to their warnings to only sell locally, the scammers are out there, etc. The first response to my ad was somebody in the UK who wanted to send me $4000 and wire the difference to their "agent." Yeah. No. Told him I didn't want to deal in any third party arrangements, and then filed a report at the FTC.

The next lady who responded said (when I asked) that she is in Spain. She didn't give any of the obvious red flags, just wanted to see a picture, then asked for my mailing address to send payment. Yesterday, I received the aforementioned QChex, in the amount of $1000 (again, I was only asking $500 for the ring). She has not, as yet, asked me to refund her any amount, or even given me an address to ship the ring to, so I haven't lost anything as yet, but as I said, I'm suspicious.

The business name on the check is a gas station in Maryland, but it's supposedly drawn on a bank in Louisiana. Now, I kept my bank account in Illinois for three years after I moved to Texas, so I know it's possible, but again... suspicious. There does appear to be a scanned signature on the check, but it's not a readable name by any means, so I have no idea what to make of that.

So, it's not the Nigerians, it's not for an amount that's hugely in excess of what I was asking, but it's still someone I don't really know sending me more money than I asked for from what is apparently an unreliable source. Is there any way to figure out if this is an honest transaction? Is there any risk to me if all I've given out is my name and my street address?

Thanks for your help.

There certainly is risk to you, specifically if you negotiate the check, then wire funds out, only to have the check be returned. You will be left holding an IOU to your bank for the funds deposited. Can you verify if this is valid? Certainly, pick up the phone and call the bank the item is drawn on to verify funds. Better yet, call the gas station listed on the check.

The question you should be asking yourself...why would a lady in Spain send you a check written from a gas station in Maryland and drawn on a Louisiana bank?

It's a scam, so far every Qchex I have seen has been a fraud. Call the account holder, they will be surprised to hear what their checks are buying.

Yeah, that was the first question I DID ask myself, which made me research the whole thing and find you fine folks here. And I've discovered more in surfing around that makes me less likely to believe it's an honest transaction.. So, if I don't negotiate the check (just tell her my bank wouldn't take it due to problems w/QChex or similar), though, I should be OK?

I advise my customers to sever all communication with individuals trying to pull off these scams. The more you talk to them, the more opportunity they have to try pulling fast one. Plus your name, email address, personal address, and whatever else you provide them, will be posted on every message board that they use and you will be flooded with additional fraud attempts. Simply let it go and wait for a legit response to your ad.