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What amazes me is that americans still use cheques, that aren't "cleared" up to a week or so. That's ridiculous.

puffoflogic 4y ago
Checks are a brilliant idea with a terrible implementation. Idea: physical financial instrument with a specified payee (OR a bearer instrument, using the same format!), with a completely unconstrained denomination, which the payer can draw up on demand and in the field. Implementation: reveal enough information about your account that anyone can "authorize" arbitrary transfers; take weeks and weeks to learn whether the funds are actually available and there's absolutely no way to convince your bank to reveal whether the transaction is verified, at any point; etc.
JoeAltmaier 4y ago
And Dwolla exists, which is better in many ways!
dwighttk 4y ago
this one was delayed because it was sketchy. I deposited a check using my bank's app last night after my bank closed and it cleared in about 20 minutes.
jacurtis 4y ago
I mean, its not all that common. I don't get checks that often, almost everything is handled electronically. But checks are still a way to distribute money physically that isn't cash, so it serves some purpose. Most Americans (especially those under 30) do not own a checkbook and don't know how to write a check. That is part of why this scam works. 20 years ago Checks were common enough that every adult understood that Check's aren't real money and people would be more cautious until it clears. But the fact that now everything is instantaneous, Checks are maybe the last exception to that. So someone with no knowledge of checks might assume that it is "real" money. I think few people understand the differences even between a cashiers check, a personal check, and a money order. Luckily Banks are more aware of these scams and tellers have been trained to ask A LOT of questions about wire transfers before executing them. It sounds like in the posted article, that OP actually got a warning about this from the banker how this is non-reversible. But again, even OP admitted that he had never completed a wire transfer before. I've only ever made 2 wire transfers in my life (and I'm 36) and both were to buy a house. Few Americans have complete a wire transfer and probably don't understand the implications of it either. So I think this scam actually preys and relies on the fact that little knowledge exists of wiretransfers and checks.
kube-system 4y ago
Like another person said, the decline of checks in the US is probably much of the reason why these scams are taking off. In the 80s or 90s everyone knew of the possibility of "writing a bad check". My local stores would even have lists of people posted at the checkout who they wouldn't accept checks from due to writing bad checks. Even if didn't use checks back then, you'd be aware of this possibility. But now, younger people are not as familiar with how they work.

Checks are a brilliant idea with a terrible implementation. Idea: physical financial instrument with a specified payee (OR a bearer instrument, using the same format!), with a completely unconstrained denomination, which the payer can draw up on demand and in the field. Implementation: reveal enough information about your account that anyone can "authorize" arbitrary transfers; take weeks and weeks to learn whether the funds are actually available and there's absolutely no way to convince your bank to reveal whether the transaction is verified, at any point; etc.

JoeAltmaier 4y ago

And Dwolla exists, which is better in many ways!

dwighttk 4y ago

this one was delayed because it was sketchy. I deposited a check using my bank's app last night after my bank closed and it cleared in about 20 minutes.

jacurtis 4y ago

I mean, its not all that common. I don't get checks that often, almost everything is handled electronically. But checks are still a way to distribute money physically that isn't cash, so it serves some purpose. Most Americans (especially those under 30) do not own a checkbook and don't know how to write a check. That is part of why this scam works. 20 years ago Checks were common enough that every adult understood that Check's aren't real money and people would be more cautious until it clears. But the fact that now everything is instantaneous, Checks are maybe the last exception to that. So someone with no knowledge of checks might assume that it is "real" money. I think few people understand the differences even between a cashiers check, a personal check, and a money order. Luckily Banks are more aware of these scams and tellers have been trained to ask A LOT of questions about wire transfers before executing them. It sounds like in the posted article, that OP actually got a warning about this from the banker how this is non-reversible. But again, even OP admitted that he had never completed a wire transfer before. I've only ever made 2 wire transfers in my life (and I'm 36) and both were to buy a house. Few Americans have complete a wire transfer and probably don't understand the implications of it either. So I think this scam actually preys and relies on the fact that little knowledge exists of wiretransfers and checks.

kube-system 4y ago

Like another person said, the decline of checks in the US is probably much of the reason why these scams are taking off. In the 80s or 90s everyone knew of the possibility of "writing a bad check". My local stores would even have lists of people posted at the checkout who they wouldn't accept checks from due to writing bad checks. Even if didn't use checks back then, you'd be aware of this possibility. But now, younger people are not as familiar with how they work.