We have been seeing some E-Complish merchants receiving "R34 - Limited Participation DFI" ACH Returns. This is an ACH Return from the Federal Reserve. Meaning someone is fraudulently trying to debit the Federal Reserve Bank direct.
In researching this further, the Federal Reserve issued an alert July 12, 2017
Consumer Scam Alert: Do Not Use Federal Reserve Routing Account Numbers to Pay Bills; Could Face Late Fees, Other Charges
For immediate release: July 12, 2017
Recently, the Federal Reserve Banks have received a number of unauthorized transactions in which consumers have tried to use the Fed's routing numbers and their Social Security numbers to pay their bills.
It is important for consumers to know that when making online or e-check bill payments, they cannot use Federal Reserve routing numbers. Federal Reserve routing numbers are used for sorting and processing payments between banks. Any video, text, email, phone call, flyer, or website that describes how to pay bills using a Federal Reserve Bank routing number or using an account at the Federal Reserve Bank is a scam.
The Federal Reserve provides banking services only for banks. Individuals do not have accounts at the Federal Reserve.
The bill payments being attempted using the Fed's routing numbers are being rejected and returned unpaid. Consumers who have attempted to use the Fed's routing numbers to pay their bills may be subject to penalty fees from the company they were attempting to pay.
Our Theory and What Is Actually Happening:
The main patterns that we are seeing are consumers are using a Federal Reserve routing number and their own social security number as the bank account number. We believe the consumer is actually the victim here. They are promised that the government, Obama, Trump or whoever will pay their bills for pennies on the dollar. The consumers with good intentions will give fraudsters account numbers and balances of all of their current and past creditors that they owe. They then give these same fraudsters all of their money to pay off their bills. The fraudsters will, in turn, send out fake monies to all of their creditors and have the consumers call their creditor to verify their debt is paid. Then a few days later, everything bounces (in this case as R34), and the fraudsters are long gone with the consumer's money. Very sad to say the least...
Below are just two examples of fraudsters:
https://www.youtube.com/watch?v=ieIK7403new
https://www.youtube.com/watch?v=ikj9VlkkX1Y
Help Spread the Word!
Please help us spread the word. Please post this information on your website and social media. You can also click on the Share on Social Media at the very top of this email.
Consumers are getting defrauded which is only hurting everyone.
Thank you!
Team E-Complish
Team E-Complish is committed to excellent service...you deserve it!
EASY PAYMENTS. HAPPY CUSTOMERS. SMARTER BUSINESS
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