SmugMug Check Cashing problem

onethumb

Hi all,

SmugMug has been hit by some criminals in Florida who have been passing fraudulent checks. We were alerted to it late Friday afternoon.

For a short while on Friday while the bank sorted it out, they put a hold on all checks cashed against our account, fearful that these criminals would drain our accounts and leave SmugMug high and dry. Thank goodness the bank was looking out for our interests and caught these guys. I'm told there have already been arrests.

I immediately gave them a list of the most recent (June) check numbers for Pro payments and authorized the bank to still process and accept those checks. I've been getting phone calls from bank branches today verifying that they're ok to cash, which I appreciate.

Apparently, though, a few branches are refusing to honor the checks and are treating our favorite Pros like criminals. I'm terribly sorry to hear that, and wish there was something more we could do, but there isn't.

If you're in that situation, I recommend that you ask the bank manager in question to carefully read the notes on our account and notice that the most recent includes a list of valid check #s to honor.

In the event that they won't listen to reason, we will, of course, issue new checks to you ASAP and get you take care of. Just email us with the details (preferrably your SmugMug account name, check #, and check amount - that'll speed things up) and we'll fix you right up.

Rest assured, SmugMug isn't having any cash flow problems. Our balances remain healthy (thanks in part to our bank's security team!), our business is strong, and we're doing well. This is purely a fraud-triggered security measure - not an indication that SmugMug is financially struggling.

So sorry for this trouble! We will certainly follow up with our bank on how best to plan for other incidents like this - this is all new to us.

Thanks for being a part of the SmugMug family!

Don

Stormdancing

One Word
Well two.

Electronic Transfer

Yes, it would be a lot to set it up, but once it's setup it would provide a more secure system of checks and balances. It would also cut down on your in house processing time and mailing costs.

Just my nickel ninety eleven and speaking from 25+ years in the accounting industry.

I hope they get those creeps and hang em out to dry!!!!!

onethumb

Stormdancing wrote:

Well two.

Electronic Transfer

Yes, it would be a lot to set it up, but once it's setup it would provide a more secure system of checks and balances. It would also cut down on your in house processing time and mailing costs.

Just my nickel ninety eleven and speaking from 25+ years in the accounting industry.

I hope they get those creeps and hang em out to dry!!!!!

I think we have something even better in mind (just as secure, far less hassle), but we're still busy with other things at the moment.

Thanks,
Don

Stormdancing

Sounds good! I really do hope they give those weasels the maximum sentence.

iamback

onethumb wrote:

I think we have something even better in mind (just as secure, far less hassle), but we're still busy with other things at the moment.

As someone coming from a country where electronic transfers are the norm, and have been for many, many years, I truly cannot imagine any payment method that's "even better". Care to explain?

(I may consider a Pro account in the future but the fact you're not doing electronic transfers or even Paypal payments is something that's definitely holding me back. Checks are just too expensive to cash!)

Andy

iamback wrote:

As someone coming from a country where electronic transfers are the norm, and have been for many, many years, I truly cannot imagine any payment method that's "even better". Care to explain?

When we have something to say on this, we surely will Thanks!

dogwood

iamback wrote:

As someone coming from a country where electronic transfers are the norm, and have been for many, many years, I truly cannot imagine any payment method that's "even better".

Coming from the USA , I have to say the check method is a little strange to me too. I have one bill that can't be paid through electronic transfer-- one. My water bill. Which is a bit strange since it's municipal water and they accept other payments electronically...

Anyway, I'm looking forward to the day SM uses something different than the U.S. Postal Service for payments-- don't know about the rest of you but I regularly end up with my neighbor's mail or mail from across town (hey-- who cares about names and zipcodes-- SE looks like NE to some carriers). Worse yet-- I rarely have the time (and who wants to pay for gas these days?) to go to the bank to deposit a check. So getting mailed a check just means it gets mailed again to the bank-- seems a little silly in this day and age.

Glad to hear SM has something else in mind but I have to say-- well-- for a company that doesn't accept check payments for SM accounts, it seems a little strange that's how you pay pro accounts.

corbosman

Andy wrote:

When we have something to say on this, we surely will Thanks!

Just please make sure it works worldwide, not just in the US (in practice, cheques are very US centered, and a huge hassle to cash outside the US).

Cor

benduki

Check Fraud
Have you ever given any thought to just wiring the funds? Would save time and money for everyone if you did. And, you could send funds to everyone no matter how small with just the press of a button. Unless, of course, you are playing the float on thousands of little accounts.

onethumb wrote:

Hi all,

SmugMug has been hit by some criminals in Florida who have been passing fraudulent checks. We were alerted to it late Friday afternoon.

For a short while on Friday while the bank sorted it out, they put a hold on all checks cashed against our account, fearful that these criminals would drain our accounts and leave SmugMug high and dry. Thank goodness the bank was looking out for our interests and caught these guys. I'm told there have already been arrests.

I immediately gave them a list of the most recent (June) check numbers for Pro payments and authorized the bank to still process and accept those checks. I've been getting phone calls from bank branches today verifying that they're ok to cash, which I appreciate.

Apparently, though, a few branches are refusing to honor the checks and are treating our favorite Pros like criminals. I'm terribly sorry to hear that, and wish there was something more we could do, but there isn't.

If you're in that situation, I recommend that you ask the bank manager in question to carefully read the notes on our account and notice that the most recent includes a list of valid check #s to honor.

In the event that they won't listen to reason, we will, of course, issue new checks to you ASAP and get you take care of. Just email us with the details (preferrably your SmugMug account name, check #, and check amount - that'll speed things up) and we'll fix you right up.

Rest assured, SmugMug isn't having any cash flow problems. Our balances remain healthy (thanks in part to our bank's security team!), our business is strong, and we're doing well. This is purely a fraud-triggered security measure - not an indication that SmugMug is financially struggling.

So sorry for this trouble! We will certainly follow up with our bank on how best to plan for other incidents like this - this is all new to us.

Thanks for being a part of the SmugMug family!

Don

Andy

kotybear wrote:

Have you ever given any thought to just wiring the funds? Would save time and money for everyone if you did. And, you could send funds to everyone no matter how small with just the press of a button. Unless, of course, you are playing the float on thousands of little accounts.

Hi, as Onethumb said, we have something else in mind... and no, we don't play any float.. we just want to get your money to you