Demand Draft Fraud: Warning

akhilesh51 · 14th March 2013, 13:30

A dealer in our town went through similar fate.

They sold an Indigo vehicle to a customer from Haryana against a Demand Draft of full value. The transaction and delivery happened in the evening on a Saturday, a perfect ploy!

When the demand draft was presented to en-cash at their local branch (Punjab National Bank), it turned out to be fake. The issuing branch was also of PNB in Haryana.

A red alert was issued immediately to all Police stations in vicinity and for once, entire police squad of town upto SP, came into support.

This resulted in a mega search and detain campaign where records, mobiles, SIMS, everything that could be checked was checked. In fact, a team of undercover police officers was sent to Haryana to pose as buyers of stolen cars.

Finally, the vehicle was traced after 40 days in Haryana and main culprits were still not found!

Lessons from this story:
Do Not trust Demand Drafts as being the safest mode of payment

Police can trace and solve any case if they have the requisite will.

Precautions while handling Demand Drafts:
Visually check and verify all contents of Demand Draft

Refuse immediately even if you have slightest doubt of forgery.

Immediately, Call the issuing branch and verify Demand Draft Details.

While Doing so, Ensure that the contact numbers of the said branch are procured from Official source (Bank Website) and is a land line number.

During the call, try to get as much information from the other side of line. Only reveal DD No. from your side.

If still in doubt, request bank manager to send you an e-mail from official Bank ID confirming the genuinity of payment.

Do not deal with large amounts of money outside Bank Hours.

If at all it is necessary, try to get payment details from customer before hand and verify all details early on.

Finally, still in doubt, REFUSE! You may lose a good business opportunity but atleast you have your goods in your safe custody.

akshay4587 · 14th March 2013, 13:38

The Dealer was probably a fool,when we had purchased Our Scorpio.
We had paid through a DD and vehicle was delivered after confirmation of payment.

sandeepmdas · 14th March 2013, 13:40

Quote:

Originally Posted by akhilesh51

[*]Immediately, Call the issuing branch and verify Demand Draft Details.[*]While Doing so, Ensure that the contact numbers of the said branch are procured from Official source (Bank Website) and is a land line number.[/list][/b]

These two are the first steps; and perhaps the only steps ever required. Your bank can also call them..

However, IMHO the best option in these days is the EFT. No other option is recommended.

condor · 14th March 2013, 15:11

Quote:

Originally Posted by akhilesh51

While Doing so, Ensure that the contact numbers of the said branch are procured from Official source (Bank Website) and is a land line number.

Not very helpful.

Example:
You can get the branch numbers of ICICI & then call the branch. Even during slack hours, or busy hours, it is most likely that you cannot reach the branch. The problem here is that ICICI's EPABX system seems to be configured to transfer the call to the All India customer care number, from where you cant really get to the branch. The transfer happens if the branch people dont respond in about -10 seconds or so - as told to me by a branch person.

Well, it will help if the All India Customer care number people respond to my query.

pramod · 18th August 2017, 15:23

I am selling mine. If I receive a DD for that amount and the DD details is written in a receipt with signature of the seller and buyer. I hope this is a good document to make my transaction clean/white right. Pls clarify.

Ry_der · 18th August 2017, 16:17

Quote:

Originally Posted by pramod

I am selling mine. If I receive a DD for that amount and the DD details is written in a receipt with signature of the seller and buyer. I hope this is a good document to make my transaction clean/white right. Pls clarify.

I believe you are selling your car. Any transaction routed through banking channel is 'white' provided the source of the money & the nature of transaction is valid.

But I will suggest you to opt for RTGS/NEFT.

Reasons:-

1. Cost Effective (DD making charges are very high these days while RTGS charges are around ₹60 only).

2. Instant credit to your Account (RTGS ~ 5Mins, NEFT~ 30 Mins) (Fraud proof)

3. RTGS/NEFT transaction are as 'white' as negotiable intrument transactions(Read DD).

4. No need to visit your bank to deposit the Draft.

I hope that clears your doubt.

14th March 2013, 13:30	#16
akhilesh51 BHPian Join Date: Jan 2009 Location: Jaipur, RAJ Posts: 631 Thanked: 339 Times	Re: Demand Draft Fraud: Warning A dealer in our town went through similar fate. They sold an Indigo vehicle to a customer from Haryana against a Demand Draft of full value. The transaction and delivery happened in the evening on a Saturday, a perfect ploy! When the demand draft was presented to en-cash at their local branch (Punjab National Bank), it turned out to be fake. The issuing branch was also of PNB in Haryana. A red alert was issued immediately to all Police stations in vicinity and for once, entire police squad of town upto SP, came into support. This resulted in a mega search and detain campaign where records, mobiles, SIMS, everything that could be checked was checked. In fact, a team of undercover police officers was sent to Haryana to pose as buyers of stolen cars. Finally, the vehicle was traced after 40 days in Haryana and main culprits were still not found! Lessons from this story: Do Not trust Demand Drafts as being the safest mode of payment Police can trace and solve any case if they have the requisite will. Precautions while handling Demand Drafts: Visually check and verify all contents of Demand Draft Refuse immediately even if you have slightest doubt of forgery. Immediately, Call the issuing branch and verify Demand Draft Details. While Doing so, Ensure that the contact numbers of the said branch are procured from Official source (Bank Website) and is a land line number. During the call, try to get as much information from the other side of line. Only reveal DD No. from your side. If still in doubt, request bank manager to send you an e-mail from official Bank ID confirming the genuinity of payment. Do not deal with large amounts of money outside Bank Hours. If at all it is necessary, try to get payment details from customer before hand and verify all details early on. Finally, still in doubt, REFUSE! You may lose a good business opportunity but atleast you have your goods in your safe custody.
	() Thanks

14th March 2013, 13:38	#17
akshay4587 Senior - BHPian Join Date: Mar 2005 Location: Chandigarh/Mohali/Ambala Cantt Posts: 4,151 Thanked: 4,525 Times View My Garage	Re: Demand Draft Fraud: Warning The Dealer was probably a fool,when we had purchased Our Scorpio. We had paid through a DD and vehicle was delivered after confirmation of payment.
	() Thanks

18th August 2017, 15:23	#20
pramod BHPian Join Date: May 2008 Location: Bangalore Posts: 480 Thanked: 323 Times View My Garage	Re: Demand Draft Fraud: Warning I am selling mine. If I receive a DD for that amount and the DD details is written in a receipt with signature of the seller and buyer. I hope this is a good document to make my transaction clean/white right. Pls clarify.
	() Thanks