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An Internet Marketing focused blog, with occasional musings about life on and off the battlefield by Marc Hil Macalua, SEO Philippines Founder and Philippine Marketing VP for US Auto Parts Network Inc.
 
Nov
02
AdSense Check Fraud on the Rise?
Posted (Marc) in AdSense on November-2-2006

Here’s an actual case of a friend who lost her AdSense check worth P20,481.45 in the mail. Now I’ve read horror stories before of AdSense publishers losing their checks but what really struck me was that somebody actually succeeded in depositing and encashing this “lost” check.

My friend was generous enough to allow me to do a case study. So I’m publishing select email correspondence between her and Google (sanitized of course). Let’s start with Google’s reply to her initial email inquiry (I won’t publish that anymore).

Thanks for your email regarding your AdSense payment. I’ve looked up your account details and our records indicate that this check has already been deposited. Please review your bank records for this payment. If you require a copy of the paid check, please don’t hesitate to let us know.

We appreciate your patience and look forward to your continued participation in AdSense.

Here’s her reply. I can vouch for this person. I’ve known her for years and she couldn’t harm an ant. Trust me when I say that she’s telling the truth.

I’m confused (and worried). This morning I received my cheque for the month of July with the payment date August 25, 2006, and payment number *******.

Problem is, my first cheque (supposedly) with payment date July 26, 2006 (payment number *******) seemed to have not reached me. I have been waiting for it the whole month but since some of my friends had the same problem in the past, I thought there was just a delay in my cheque too.

There’s no way I could have deposited the cheque since I didn’t receive it at all. I’m sure there’s no chance that someone else deposited it too since it’s paid under my name.. (highlights are mine) is there any chance that the previous cheque be cancelled and sent to me again?

What happened next is truly shocking. Google sends my friend a scanned copy of the bank transaction confirming that somebody had indeed claimed and deposited her check under her name. You can view the sanitized version of that document here.

My friend knew this was something Google could have no knowledge of and it was pointless to push them for answers.

Thank you so much for responding just as you said you would. I really appreciate you attending to this matter. :)

I understand that this is already beyond your responsibility. However, I just want to say that the signature affixed in the check was not mine, and this cheque was claimed by someone else.

I’m going to the main office of Citibank tomorrow to report the fraud, and I’m hoping to get the money back (I doubt, however, if that’s gona happen. Still, i want an explanation).

Does this incident happen all the time? Do you often get inquiries such as this? I hope one of these days you guys can devise a way to make the transactions and the mailing of cheques more secured (even without the DHL option). I know 20,000php may not be that much but what if it happens again? It’s going to be much harder to accept if the amount at stake is bigger.

Anyway, thank you so much again. I really appreciate your timely response. More power to Google. :)

Google sent one final reply and showed her the next step she could do.

I’m sorry to hear that the signature on the back of your check was not yours. If you would like Citibank to start an investigation, please complete and notarize the attached ‘Affidavit of Forgery’ and mail it to us at:

Google Inc.
ATTN: AdSense Payments
1600 Amphitheatre Pkwy
Mountain View, CA 94043
USA

Although we can’t guarantee that the funds will be returned to you, if you submit the affidavit, Citibank will be able to start an investigation on your behalf.

As far as Google was concerned, the check was deposited and the amount was credited to the addressee. How that person got the check is beyond me. There are just too many possibilities. Was this a one-person operation restricted to a particular post office or is this the handiwork of a dedicated syndicate inside the Philippine postal system. We can never say for sure.

And how did the perp manage to open a fictitious bank account in RCBC? Did he/she get help from someone inside the RCBC branch in question? If two IDs and a smiling face are all that’s needed to open an account and to encash a check, it’s no wonder we get the not secure treatment as far as banking systems go, e.g. PayPal.

For the next post, I’ll offer tips on how to avoid being the next AdSense check fraud victim.

Next: How to Avoid AdSense Check Fraud.

   Read More   

Comments:
Miguel A Paraz on November 3rd, 2006 at 1:29 AM #

Eileen, we need electronic funds transfer!

Until that happens, I guess the only solution is to go DHL.

Noemi Lardizabal-Dado on November 3rd, 2006 at 7:44 AM #

Ugh That is awful. Banks also require a photograph too aside from ID’s. I hope your friend can file a case of forgery at the bank. I am sure she can verify her identity with the bank.

riz on November 3rd, 2006 at 7:55 AM #

I’ve known her for years and she couldnt harm an ant. yeaaah. :p

marhgil on November 3rd, 2006 at 9:42 AM #

O oh. I’m expecting my first Google paycheck this month. Hope this will not happen to me. Nag-isip tuloy ako kung ipapaDHL ko na yung next paycheck ko sa December. Eh kung ireport nya kaya sa XXX or kay Tulfo? Alam mo na, kapag may media, bumibilis ang proseso ng kaso.

Alan Ocab on November 3rd, 2006 at 12:24 PM #

Scary. I have an affiliate check which has not reached me. I was told that it was sent two months ago.

And this mail pilferage in the Philippines has been there since nineteen tagal-tagal na. Old school technology pa gamit nila. But thieves rely on their deep network inside every arm of the financial system, I guess.

Marc on November 3rd, 2006 at 12:36 PM #

Noemi, she decided to not pursue it anymore. Citibank said she had to deal with RCBC directly.

Marhgil, my suggestion would be to go DHL or UPS :)

Miguel A Paraz on November 3rd, 2006 at 12:43 PM #

Perhaps it’s harder to steal if it’s a dollar check?

Boy PH on November 3rd, 2006 at 2:52 PM #

Grabe naman kasi adsense worth of P20,481.45 via mail pa waaa

yuga on November 3rd, 2006 at 3:46 PM #

You’d be surprised Adsense checks are the least prone to cheque fraud in the Philippines.

pinoymoneytalk on November 3rd, 2006 at 4:19 PM #

Better ask RCBC who the owner of the account is. Mahabang proseso kasi kelangan mo ng legal document to bypass the bank confidentiality clause, pero I think it’s worth it. Para masolb din natin kung bakit maraming nawawalang tseke at bakit nagagawa nilang mag-open ng bank account gamit ang ibang pangalan.

Marc on November 3rd, 2006 at 4:39 PM #

Migs, I’m tempted to think the same. When I opened a USD account with BDO, sobrang hirap.

Boy PH, that’s what I told her too :)

Abe, mukhang EFT talaga best option.

Pinoymoneytalk, yeah, if it were up to me, I’d hammer RCBC (or at least shake them a little).

aileen on November 3rd, 2006 at 5:17 PM #

yeah, she told me all about this and it was very much surprising as i’d thought t would be close to impossible that the check be encashed by anyone else since it’d been signed under her name. graveh!

Miguel A Paraz on November 3rd, 2006 at 5:24 PM #

Mahirap? Exactly.

It should be hard for the fraudsters to open that dollar account, and harder to deposit the stolen cheque.

Thoughts In Binary on November 3rd, 2006 at 6:15 PM #

Happened to me recently, happened to rebelpixel.com last year. Both our checks were cashed in Dagupan. Check my post about it.

pinoymoneytalk on November 4th, 2006 at 1:12 AM #

Read other stories of people who have experienced this. Apparently the story above is not the first and the only one. These fraudsters deserve to go to jail, no, they deserve to die! Tsk tsk.. this has to be stopped. If only we know how to…

Manuel Viloria on November 4th, 2006 at 8:59 AM #

So far, others whose checks got waylaid used the following post offices: Pasig and Alabang.

Marc, which post office does your friend use?

Marc on November 4th, 2006 at 12:52 PM #

Manuel, Caloocan PO.

Let’s come up with a list of post offices that have had stolen/missing AdSense check-related incidents before and post it to the discussion group :) I don’t mean to create panic, but having that information available to the group would be great.

So it’s Pasig, Alabang and Caloocan POs. Any other POs worth mentioning here?

markku on November 4th, 2006 at 12:53 PM #

Kung gusto nyo nang madaling pag-open ng USD savings account, try Asiatrust bank, meron sila sa Ortigas sa may Garnet Road. I opened mine around a year ago, nakiusap lang ako, all I had was a few IDs, thirty dollars in cash and a hundred dollar google adsense check. Mabait yung manager, I think her last name was Zabala. She’s quite tech-savvy I think. So after that, all my dollar checks are with them, no problems ever since day one.

Now I sound like an advertisement, but I suggest try nyo kung nahihirapan kayo mag-open ng dollar savings. =)

Mike Abundo on November 5th, 2006 at 4:52 PM #

Hope Aileen Apolo’s reading this. EFT would make her job of establishing a Google monopoly here a Hell of a lot easier.

leo on November 5th, 2006 at 10:54 PM #

I never trusted our postal system, that’s why I choose to pay the $24 courier fee for a more secured delivery of checks. I think it’s worth the charge for a peace of mind. :)

Basang Panaginip on November 6th, 2006 at 4:10 PM #

Google should sent all Adsense PIN and checks via DHL or Western Union

Elymar Apao on November 6th, 2006 at 6:38 PM #

Man this is terrible. Good thing I decided to go for DHL secure delivery. Sheesh, what people would do for 20thousand pesos.

Marc on November 7th, 2006 at 7:07 PM #

Markku, patay baka jan tumakbo mga AdSense check thieves hehe :)

Mike, is EFT already available for US publishers?

Leo, couldn’t agree with you more.

BP, it’ still a business, and the ‘path of cheapest resistance’ is through ordinary mail hehe

Jozzua, whitecollar crimes suck hehe I want gore!

markku on November 8th, 2006 at 11:57 PM #

Marc, actually no. Hehe. Yung check ko sa Dagupan na-cash, just like Mark’s, magkaibang bank lang. I think may organized operation na dun dinadala eh. :(

Paul on November 9th, 2006 at 2:17 AM #

I looked at the endorsement at the back of your friend’s check and it was deposited in the same bank in the same general area as the most recent check that my company was almost defrauded with.

I suppose the PO thieves know exactly what kind of envelope they are looking for, even if the AdSense checks are contained in envelopes that don’t call attention to themselves. They actually look like envelopes that contain high-end junk mail.

Russell on November 17th, 2006 at 8:18 PM #

Im sure those thieves will not get away with this one if the victim will chase them. Anyway, the bank records can reveal their identity particularly the ID photos. ID’s can be manufactured in Recto for a cents. But bank will require photograph to open an account, right?

Better go for DHL, what is $24 compare to $400?

Miguel on November 18th, 2006 at 11:58 AM #

Yeah, but most of us only get $100 per check!

Russell on November 18th, 2006 at 7:20 PM #

Miguel, most of my friends also. But I advised them to hold it until such time that they can afford to send it via DHL that to lose it…

Tom on December 27th, 2006 at 3:40 AM #

That really is a shocking story. Did your friend ever get her money back? I don’t know how the law is in the Philippines but over here (the UK) the bank would be responsible and have to bear the loss. Nice of Google to be so helpful and send your friend evidence that the cheque had been cashed - they aren’t always.

cool_78 on January 4th, 2007 at 6:54 AM #

Add me to the list of stolen adsense check for $208. Q.C Post office just cleared last dec. 29 Iam requesting a copy of the check so I can sue the bank that allowed the deposit for 2nd endorsement if the account deposited to is not the same as my name

John on February 10th, 2007 at 4:59 AM #

Happened to me also. I’m going to ask Google the scanned copy and will definitely pursue this. It may be just a small amount in my part but its still fraud. Paranaque post office. Tsk tsk.

jepoy on March 3rd, 2007 at 8:37 AM #

welcome me to the club :P

my jan2007 check has been stolen and deposited somewhere. Google has yet to send me a scanned copy of the check. Damn post office bastards.

Nel Animo on April 12th, 2007 at 5:43 PM #

naku wagnaman sana mangyari sakin yan.. may inaantay din akong check ngayon from google.

Jehzeel Laurente on June 6th, 2007 at 5:26 PM #

wow thanks for this post! this will save my first google cheque… Now i have really decided to go for DHL rather than the standard cheque delivery that I’m not sure if it will really arrive or not.. hehehe.. thanks for this post Marc, and thanks to Marghil for the link to this post ^__^

jejaka on July 20th, 2007 at 12:33 PM #

hi… i got some question from you guys… i had received my 1st check and submit it to my bank(malaysia)… i want to know what is it mean check cleared in my statement adsense account… the date show checked cleared was 26 june ago.. but i still havent’s see yet the money in my account bank… i went to bank on 19 june for check bank in… thnks for your helping!!!

Jay Cruz on August 2nd, 2007 at 10:30 AM #

Same thing has happened to me. Deposited to LANDBANK ACCOUNT like so many other people. The TRUE CULPRIT HERE IS **THE BANK** which allows “to payee only” check to be deposited in someone else’s account.

IT IS EASY TO TRACK DOWN WHO THE PERPERTRATORS ARE, THAT WOULD BE THE OWNER OF THE LANDBANK ACCOUNT OR WHATEVER BANK THE CHECK IS DEPOSITED IN.

Jay Cruz on August 2nd, 2007 at 10:32 AM #

Note that there will be a paper trail because the Google Check can never be exchanged for cash directly (at least at a bank) and has to be deposited into an account.

Jay Cruz on August 2nd, 2007 at 10:33 AM #

Caloocan PO too, btw… i moved my PO to Greenhills now, will see if the same thing happens.

Anyone using greenhills PO have their Adsense check stolen?

Conrad Miguel E. Gozalo on September 14th, 2007 at 3:19 PM #

Oh, this is such a serious matter! I’ve heard that some big packages from abroad are stolen by the workers of the Philippine Post Office. It’s so disappointing that this is happening to our country. ;(

Kashif on November 2nd, 2007 at 2:45 PM #

You are not alone guys. This had happened to us once (2 years back) when we used to receive Adsense checks via ordinary mail. Somebody (most likely from the post office) took the check and deposit it in his bank while the check was on my name.

The scanned copy received from Google showed a forged copy of my signature at the back of check.

Since then I am receiving checks through express delivery. Though it takes $25 per check but its secure and worth the money.

jande on March 10th, 2008 at 5:14 AM #

As a recent victim of check signiture forgery i sympothies. 90 percent of these fruad cases could be easily prevented with a simple redesign of how checks work. Firstly the check should be broken into to parts. The second part would be a sticker with the account number and a hard to duplicate symbol that is the same as the one on the check. The symbols would be unquie per check book and would be use to verify by the cashier that it is a valid check ie a key. The place where the accunt number is would have “place official sticker here”. Checks books and stickers would be sent separatly. futhermore the requester could opt to call for the second piece once the first had arrived. The same could happen when google posts there checks. They send the key separately. The second thing that could be done is a encripted unquie bar code on the check. The bar code would be used to quickly validate the check online. If its not more identifycation would be required or the police would be notified. This part would be something that would have to happen before technolgy was created to take advantage of it.

I doubt it will happen though. Its obvous, but its so hard to talk to the people that matter with ideas like this.

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