Tag: Bank account

Scammers are staking out Americans’ front doors in a wily new debit card scheme. How the scam works and what to do

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You may think that credit cards are the payment method most targeted by financial fraudsters, but that’s not true. It’s, in fact, debit cards that fraudsters pursue most — and the number of cases involving them keeps increasing, according to a Federal Reserve survey of financial institutions (1). And the reasons why this may leave you more vulnerable to financial loss may also surprise you.

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When you think of debit card scams, you might imagine people having their debit cards physically stolen or their card numbers and PINs skimmed. But there are other debit card scams on the rise that are even more complex. And, as with other scams, having information on how they work may mean the difference between keeping your finances intact and becoming the next fraud victim.

As the Detroit Free Press recently reported, new debit card scams are popping up and gaining momentum (2). One of the most bizarre ones starts with banking customers being warned that there’s a problem with their account, which is a common theme for financial scams.

Next, victims are told to destroy their debit cards but leave the chip on the front of the card intact for security purposes. The scammers then steal the chips by sending a “bank representative” out to pick up the destroyed cards with the chips intact and use social engineering to get the PIN numbers needed to use the cards. With the chip and the PIN, they can then steal funds from the victim’s bank account.

Of course, debit card fraud isn’t the only thing consumers have to worry about. Check fraud has also been on the rise, increasing 10% in 2024 from the prior year, the Federal Reserve survey also found.

The Independent Community Bankers of America has been working with the U.S. Postal Inspection Service to educate customers on check fraud via handouts at different banking locations.

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Financial fraud is a problem in general, although, as a consumer, you may be at risk of greater losses if your debit card or checking account is targeted.

Under the Fair Credit Billing Act, consumers are limited to $50 in losses for fraudulent credit card transactions that are reported within 60 days (3). However, most credit cards offer full protection, meaning if your card is stolen or used by a criminal, you probably won’t lose a dime.

Debit cards don’t typically offer the same protection. When your debit card is stolen or accessed by a criminal, the money comes out of your account immediately.

If you report the fraud within two business days, you’re limited to $50 in losses. If you report the fraud after two days and within 60 days, you’re limited to $500 in losses — not an insignificant amount. Worse yet, if you report the fraud after 60 days, you could lose the entire sum that was stolen from you (4).

With checks, timeframes vary. The law says consumers have a year to report check fraud, but there is some leeway. For example, many banks require notification within 30 days, while others expect to be alerted within 14 days after the bank statement was sent out (5).

As a consumer, it’s important to take steps to protect yourself against debit card and check fraud. That includes knowing about the latest scams, including the one mentioned above.

But that doesn’t mean a criminal won’t try to steal your money another way. Perhaps they could steal a replacement debit card from you in the mail or steal checks you’ve written, altering the payee and cashing them.

One option you could look at for protection is to install a mailbox lock where the incoming mail slot remains accessible while the storage part remains locked to anyone who doesn’t have the key. That could prevent a criminal from getting into your mail while allowing a mail carrier to deliver it.

You can also install a security camera outside your home that covers the area of your mailbox. However, this may only offer limited benefits. If a criminal is going to steal your mail, chances are they’re going to wear enough gear to mask their identity.

For debit cards, other fraud prevention methods include always knowing where your card is, covering the keypad when you enter your PIN, and, when buying things online, making sure you shop on a legitimate, secure site while avoiding public WiFi networks.

In addition, look out for loose components on debit card readers at merchants. That could be an indication that a machine has been tampered with and a skimmer has been installed.

Other tips include monitoring your bank account regularly to check for fraudulent transactions and never responding to an unsolicited call, email or text that appears to be from your bank. If you have a concern, call your bank directly or visit a local branch.

Also, never give out your account or PIN over the phone. The same goes for your Social Security number (or other personal sensitive information as a general rule). Having this information could make it easy for a criminal to steal money from your account, and in some cases, steal your identity.

When it comes to checks, fraud prevention methods include writing checks with permanent markers or having them sent electronically from your bank. With the latter, there’s a record with your bank of the intended payee, so it may be easier to prove that fraud has occurred.

It’s also a good idea to bring checks to a post office and have them mailed out directly rather than leaving them in your mailbox to be picked up by a mail carrier. Delivering checks in person is another secure option.

Online scams are on the rise, with the FBI reporting that in 2024, Americans were scammed out of $16 billion by online fraudsters, a 33% increase over 2023 (6). The same year, the FTC reported that the dollar amount for losses from online scams was projected to grow.

To protect yourself and your loved ones from these online scammers, consider using a scam alert service like Aura.

Aura’s online scam tracker uses AI monitoring to look for unusual transactions, sending alerts for any suspicious or significant activity within minutes. Their U.S.-based fraud experts are available 24/7 to ensure you can find accurate information and resolve the situation quickly.

Aura also offers credit monitoring, identity theft protection and parental controls so you can ensure your children don’t fall prey to these fraudsters. Plus, Aura delivers fraud alerts up to 250 times faster than other services of this kind.

Sign up today to enjoy this extra layer of security when shopping online.

Ultimately, prevention is your best defense, so be proactive in learning about the latest safety measures and how scammers try to circumvent them.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Federal Reserve (1); USA Today/Detroit Free Press (2); Cornell Law School Legal Information Institute (3); Michigan Consumer Protection (4); Time (5); FBI (6)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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December 24, 2025
A Big Change to Social Security Is Coming This Fall — and It’s Probably for the Best
The Social Security Administration (SSA) announced a big change to the program starting Sept. 30, 2025 — but don’t worry, it’s not a cut to benefits. Instead, that’s the day that the SSA will stop issuing paper checks. This shift to completely digital payments isn’t meant to inconvenience beneficiaries; rather, it’s a huge cost-saving move on the part of the government.

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Regardless of the reasoning behind it, you’ll need to prepare for it. Here’s what you’ll need to know about the historic shift.

Although a seismic shift in terms of transitioning from old ways to new, very few beneficiaries will actually be affected by the switch to electronic payments.

According to the SSA, less than 1% of beneficiaries currently receive paper checks, which is a staggeringly small percentage. Nonetheless, with nearly 74 million Americans receiving benefits, that still amounts to almost three-quarters of a million recipients.

To make a smooth transition and ensure they don’t miss out on any payments, those beneficiaries will have to switch to one of two electronic payment methods, per the SSA:

Enroll in direct deposit: This is probably the easiest and most common method. Much like you would get a direct deposit from your employer into your bank account, you can sign up for direct deposit of your Social Security benefits.

Get a Direct Express® Card: If you don’t have or want a bank account for whatever reason, you can receive your benefits via a Direct Express® card. This is a prepaid debit card that the SSA reloads every month. Like any other prepaid card, you can use it to make purchases or pay bills. You can also get cash from an ATM machine using the card.

Read Next: Social Security Full Retirement Age Went Up This Month — Why It May Continue To Rise

Change can be uncomfortable for many, particularly when it comes to handling money. The SSA understands this and offers these helpful answers to questions beneficiaries may have regarding the change:

Although the internet can be helpful, if you’re uncomfortable with it, you can still get your payments. As the SSA points out, electronic deposits do not require internet use. If you go the direct deposit route, you can visit your local bank teller to get your money without using the internet. With the Direct Express® card, you can simply use it like a debit or ATM card, no internet necessary.
There are four simple ways you can set up your electronic transfer:

Call the Social Security Administration at 1-800-772-1213.

Set it up online at www.ssa.gov.

Visit your local bank or credit union and provide the necessary account information.

Enroll the Direct Express® card by calling 1-800-333-1795.

You may want to work with a trusted family member or financial advisor when it comes to managing your money. But the electronic deposit process should make budgeting and planning easier.

With a paper check, you have to wait to receive it in the mail, hoping it is not delayed or lost, and then go visit your bank and make the deposit, in some cases waiting for the check to clear. With electronic deposits, your money comes in on the same day every month, automatically appearing in your account with no hassle.

According to the SSA, there are four major benefits to using electronic payments:

Security: Paper checks in the mail are an easy target for thieves and fraudsters. Electronic payments, although theoretically capable of being hacked, are a much harder target for criminals.

Reliability: Once you set up your electronic payments, you’ll receive the same amount on the same day every month. You won’t have to worry about delays that can hit the postal system.

Convenience: It’s hard to argue that electronic deposits are not more convenient than paper ones. Funds automatically appear in your bank account or debit card and don’t require trips to the bank – or even to your mailbox. While convenient for everyone, it’s particularly helpful for those with mobility issues or who live in remote areas, far from any bank or post office.

Cost savings: In an era when the national debt is spiraling out of control, any cost savings the government can muster should be applauded. In the case of Social Security payments, the cost savings are potentially huge. When the government issues a paper check, it costs about 50 cents. But electronic transfers only cost about 15 cents per transaction, per Newsweek. Between that and other administrative costs, the government stands to save billions of dollars in expenses.

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This article originally appeared on GOBankingRates.com: A Big Change to Social Security Is Coming This Fall — and It’s Probably for the Best
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September 7, 2025
‘I believe she made a big mistake’: My wife put her paycheck into a bank account with her inheritance. Do I now own 50% of those funds?

“Am I entitled to half of her Social Security income?” (Photo subjects are models.) – Getty Images/iStockphoto

Dear Quentin,

I understand that, in a divorce, a spouse is not entitled to money that their spouse inherited if those funds were not commingled in a joint account. I’m in a situation where my wife inherited money after we were married. But I believe she made a big mistake: She put it into her own account.

For about 20 years — unbeknownst to me — she had money from her paycheck deposited into the same account that held her inheritance. Now she’s on Social Security, and the entire amount is also deposited into that same account each month.

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I’m still working, and we’ve always filed joint tax returns. No tax is being withheld from her Social Security income, so my tax refund each year is about 60% less than it would be if our joint tax return did not include the Social Security income.

If we were to divorce, would I be entitled to half of her separate account, given that she has commingled joint income for 20 years with the inherited amount? Am I entitled to half of her Social Security income, just as she would be entitled to half of mine once I begin taking it?

Husband in Texas

Related: ‘He forced me to take Social Security at 62’: My husband inherited millions, but never gave me a penny. If I divorce him, would I get any of it?

Money transferred from a joint bank account into a separate bank account with your wife’s inheritance does not have the same commingling effect. – MarketWatch illustration

Dear Husband,

I have some good news — for your wife.

Your wife should manage her inheritance appropriately, especially given that your marriage has seemingly seen happier days and you are considering a divorce. She appears to have done just that, as you have been following the paper trails of money going in and out of accounts. I can’t blame you for that, but you’re not sitting on a golden goose.

Money transferred from a joint marital bank account into a separate bank account containing your wife’s inheritance does not commingle your inheritance. Texas is one of nine community-property states, along with Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Washington and Wisconsin.

Cash transferred from a bank account with separate marital property into a joint bank account is considered commingled. Separate marital property might include an inheritance, funds from certain personal-injury claims, money earned prior to the marriage or assets clearly purchased with money from those aforementioned sources.

There are other ways an inheritance could be commingled, according to the law firm Hailey-Petty, which has offices in San Antonio and Austin, Texas. “If inheritance funds are used to purchase or invest in property that is titled jointly or used for the benefit of both spouses, this can also lead to the inheritance being considered marital property.”

The law firm continues: “If inheritance is used to significantly improve marital property — like funding a major renovation of a jointly owned home — that portion of the inheritance can become marital property. Some states,” it adds, “have specific conditions under which an inheritance can be considered marital property.”

Spousal benefits

A person cannot receive Social Security spousal benefits until that spouse claims Social Security themselves. The amount the person receives would depend on whether the spouse started claiming at 62, or whether that person waited until full retirement age or maxed out their benefits by waiting until age 70 to claim.

Just so we’re clear: If you claim spousal benefits of up to 50% of your wife’s Social Security, it would not affect her benefits. If you get $1,500 and your wife gets $5,000, you can claim on her record and get $2,500, but you don’t get $4,000; you get the higher of the two benefits. The person receiving the higher benefits will not be affected.

If you wish to receive spousal benefits after your divorce, you must be at least 62 years old and unmarried and you must have been married to your ex-wife for at least 10 years. “You can apply for benefits on your former spouse’s record even if he or she hasn’t retired, as long as you divorced at least two years before applying,” according to the Social Security Administration.

Should you decide to remain married, you’re entitled to receive 50% of your wife’s benefit, assuming she is the higher earner. If you are the higher earner, the same is true for your wife. It’s an equal-opportunity policy. As you don’t say who is the higher earner, it’s impossible to say who would (or will) ultimately benefit.

To be eligible for a spouse’s benefits, “you must be 62 years of age or older or any age if you have a child who is younger than 16 in your care or has a disability and is entitled to benefits on your spouse’s record,” the SSA says. “If you choose to receive your spouse’s benefits before you reach full retirement age, your payment will be permanently reduced.”

Ultimately, your wife’s inheritance is as safe as houses.

More columns from Quentin Fottrell:

‘My husband blew a gasket’: I bought a $20,000 Toyota SUV using financing. My spouse said, ‘Pay it off immediately.’ Did I get a bad deal?

‘I’m trapped between warring siblings’: My late father left a ledger with $80,000 in unpaid loans to my brothers. Can they be forced to pay?

‘This flies in the face of my morals and ethics’: My father cut my sisters out of his six-figure estate. Should I push back?

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October 8, 2024
I’m a Bank Teller: 7 Reasons You Shouldn’t Keep More Than $3,000 in a Checking Account

YinYang / Getty Images

Many people simply leave a large chunk of money in their checking accounts and let it sit there. But is that the best move? Probably not. GOBankingRates spoke to Rachael P., a seasoned bank teller who had seen it all when it came to customers’ banking habits. She knew firsthand the pitfalls of keeping too much money in a checking account and was always ready to offer tough financial advice when needed.

Here are the seven reasons why a bank teller advised against keeping more than $3,000 in a checking account.

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No Interest Earned on Larger Balances

The number one reason Rachael disliked seeing huge balances in checking accounts was the complete lack of interest earned. “Why would you keep $10,000 just sitting there doing nothing?” she asked. Checking accounts are meant for money that will be spent in the short term, not for larger sums that could be earning interest elsewhere.

Find Out: I’m a Bank Teller: 9 Reasons You Should Never Ask for $2 Bills From the Bank

Easier Access Makes Frivolous Spending More Likely

Rachael had noticed a clear correlation between the size of a customer’s checking account balance and the amount of frivolous spending they do. “It’s like having a milkshake in front of you 24/7 — you’re going to keep taking sips whether you need them or not,” she said. Separating out larger sums makes it psychologically harder to dip into funds earmarked for other purposes.

You Lose Out on Opening Bonuses

Many banks offer lucrative bonuses of $200 or more just for opening new checking or savings accounts and maintaining a minimum balance. But if you already have a large checking account balance, you miss out on the ability to cash in on these deals. “Why leave money on the table?” Rachael asked. “That bonus could go right into investments.”

Your Money Isn’t as Safe as You Think

For all the security surrounding banks, a checking account balance only has $250,000 of FDIC insurance if the bank fails. Any amount over that is not protected. By keeping an excessively large sum in a checking account, customers were needlessly putting their money at risk. “Write that number down and decide if it’s worth it,” Rachael said.

No Opportunity for Compounding

“The miracle of compounding only works if your money is actually invested and earning returns,” Rachael shared. By leaving large amounts of money in checking accounts, many people were depriving themselves of decades of potential growth. Even a simple high-yield savings account could earn a customer hundreds — if not thousands — more per year than a standard checking account.

It Can Impact Mortgage, Car Loans and Other Approvals

During the underwriting process, banks and lenders look askance at excessive funds sitting in checking accounts, explained Rachael. They want to see a clear delineation between assets, investments and funds marked for down payments or reserves. “If they see $50,000 in your checking account, they’re going to wonder if that money should have been dedicated elsewhere in your finances.”

You Could Become a Target for Fraud

“As sad as it is, sometimes having a fat checking account balance makes you a bull’s eye for scammers both inside and outside the bank,” said Rachael. She had seen professional scammers becoming quite skilled at studying account balances and crafting ways to siphon off large chunks illicitly. While no sum makes you 100% safe, smaller balances tend to fly under the radar more easily.

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This article originally appeared on GOBankingRates.com: I’m a Bank Teller: 7 Reasons You Shouldn’t Keep More Than $3,000 in a Checking Account

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June 20, 2024
Thousands of Californians haven’t touched their Middle Class Tax Refunds. Are you one of them?

Here’s a statistic that’s hard to understand: More than 600,000 Californians with low to moderate incomes haven’t touched the free cash the state gave them during the pandemic.

They haven’t spent it, nor have they stashed it away for a rainy day. Instead, they’ve left the money — $200 to $1,050, depending on their income level and tax-filing status — sitting on unactivated prepaid debit cards, where it doesn’t even earn interest.

The state called the handout a Middle Class Tax Refund, although truth be told, it wasn’t a refund — it was a grant from the state’s erstwhile budget surplus, ostensibly to offset the high price of gasoline and other goods. If you filed your 2020 state tax return on time, you qualified for a grant as long as your income was no more than $250,000 (for individuals) or $500,000 (for couples or heads of households).

The Franchise Tax Board made the vast majority of the grants between October 2022 and February 2023, ultimately awarding $9.2 billion to 16.8 million California taxpayers. The state sent the money straight into the bank accounts of 7.2 million households that had signed up for direct deposit, paying an average of $555, according to the tax board. The other 9.6 million households were supposed to receive their money in the form of prepaid debit cards, collecting an average of $542 per household.

Here’s the interesting thing. According to the state, more than half the cards issued still had unspent funds as of April 8. In fact, about 624,000 cards had not even been activated. That’s hundreds of millions of dollars encased in plastic, benefiting no one.

The FTB said an unspecified number of cards were “pending updated address information,” meaning they couldn’t find the intended recipient. The board didn’t reveal how many cards were held up by this problem. It’s easy to imagine the state having trouble finding addresses for taxpayers experiencing homelessness, but such cases can’t account for most of the 624,000 unactivated cards.

By now you may be wondering whether you are one of those taxpayers still waiting for a card in the mail. If you filed a 2020 California tax return on time, earned less than the income limits for the Middle Class Tax Refund that year and have not given your banking information to the FTB (you sent money to the FTB or received refunds from it via checks, not electronically), and you’re still a California resident, then you would appear to be eligible for a grant.

You might think that the tax board would have a list of people still missing their prepaid cards, so you could ask whether you’re on it.

You would be mistaken.

Instead, the FTB offers two potential courses of action. “If you have not received your debit card and believe that you are eligible, make sure that your address is up to date with FTB,” the board says on its website. “Visit our Help with the Middle Class Tax Refund page for instructions to update your address.”

Alternatively, you can call the contractor distributing the prepaid cards, Money Network, at (800) 240-0223. To find out whether a card was issued to you, you’ll need to navigate through a series of automated prompts, then enter the last six digits of the Social Security number used on your 2020 tax return, followed by your ZIP Code, to see if Money Network has an account that matches.

If not, you weren’t issued a Middle Class Tax Refund on a prepaid card. You can then find out whether a card was ever sent to your address and, if necessary, request a new one.

You may also find out, however, that your card was issued and all of the funds have been spent. There have been numerous reports of cards being hacked and accounts being drained by thieves who use physical or electronic tools to grab card numbers, PIN codes and other identifying information.

Money Network’s contract requires it to keep the fraud rate below 1%, but considering the number of cards issued, even 0.5% would mean 48,000 households victimized.

Attorney Kevin Kneupper of the Huntington Beach-based law firm Kneupper and Covey filed a class-action lawsuit against Money Network in August on behalf of Californians whose Middle Class Tax Refund cards were hacked or not issued. But in April, U.S. District Judge Kenly Kato dismissed the complaint, ruling that individual Californians did not have standing to sue because they weren’t the intended beneficiaries of the contract between the state and the company.

Kneupper said his firm has probably heard from about 100 people who’d had problems with cards, with more complaints coming in every day.

You still have a remedy if your card is tapped by hackers, though. By law, you are entitled to be reimbursed for any unauthorized charges on your card.

The FTB and Money Network say that if you suspect your card was used without your authorization, you should call the company at (800) 240-0223 from 8 a.m. to 5 p.m. Pacific time, Monday through Friday. You’ll need to enter the number on your prepaid card, then wade through a series of automated scripts and responses to get where you’ll need to go.

To avoid hackers and thieves tapping into your prepaid card, transfer the balance into your bank account, if you have one. You can do so at no charge through mctrpayment.com, via the Money Network mobile phone app or by calling (800) 240-0223. Money Network lays out the steps on its Frequently Asked Questions page.

Alternatively, you can sign up for transaction alerts on the Money Net mobile app. That way, you can find out quickly if someone is using your card without your permission. You can use the app to lock the card to prevent any money from being withdrawn if you suspect a problem or if you know you won’t be using it for a while.

Jon Healey

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May 23, 2024
'Pig butchering' is draining victims' bank accounts. Here's how to avoid being scammed

Barely a day goes without a scam of some kind popping up on our phones or in our email, trying to get us to download malware, reveal a password or pay for fraudulent goods. But there’s one bit of con artistry gaining traction that you definitely don’t want to fall for.

It’s called a “pig butchering” scheme, because the perpetrators will “fatten up” a victim to gain their trust before “butchering” them — typically by persuading them to invest large sums of money into a fraudulent investment, then making off with all of it.

Four men, three of them from Southern California, were recently charged in connection with such a scam, the U.S. Department of Justice announced Thursday. The DOJ alleges that the con cost victims $80 million.

Alham Lu Zhang, 36, of Alhambra; Justin Walker, 31, of Cypress; Joseph Wong, 32, of Rosemead; and Hailong Zhu, 40, of Naperville, Ill., were charged with conspiracy to commit money laundering, international money laundering and concealment money laundering, the DOJ said. Zhang and Walker were arrested and appeared in court Wednesday. If convicted, they face a maximum penalty of 20 years in prison.

Pig butchering scammers often find their victims on dating sites or social media, or by calling and pretending to have dialed a wrong number, federal officials said in the release. The scams are largely carried out by criminal enterprises from Southeast Asia, which use human trafficking victims to reach out to millions of people around the world, according to the U.S. Treasury Department. Scammers create relationships with the victims to gain their trust and, in many cases, introduce the idea of using cryptocurrency to make a business investment.

In cases involving cryptocurrency, victims are directed to fraudulent platforms to make investments, unwittingly sending their money to scammer-controlled accounts. The platform falsely shows significant gains on the investment, and the victims are then encouraged to pony up more and more. However, when they eventually try to withdraw their money, the scammers stonewall them — or just disappear with the funds.

In the case announced Thursday, the feds allege that Zhang, Walker, Wong and Zhu conspired to open bank accounts and shell companies to launder money from a cryptocurrency investment scam. The four are accused of making hundreds of transactions that caused the victims to lose more than $80 million — more than $20 million of which ended up in the defendants’ bank accounts.

According to FBI spokesperson Laura Eimiller, pig butchering scammers are patient and will build a relationship with daily small talk to make the victim feel comfortable. They may also send photographs portraying themselves as wealthy and successful. One sign that the romantic partner you met online may be a scammer is that the person is never willing or able to meet with you, always offering excuses and reassuring you they will visit soon.

The scammers usually introduce the investment opportunity by sharing their own success stories and saying they got wealthy through a particular investment platform, Eimiller said. They’ll share screenshots of their bank accounts with high balances and eventually pressure the victim to invest, presenting it as a “near guarantee” to make money — with the caveat that the victim should start with a small amount of money to see that it works.

The victim is sent a link to download a mobile app, or they’re directed to a website to open an account, according to Eimiller. The accounts, which the scammer will control, require them to upload their identification. Victims usually start with small amounts of money and get instant returns. They’re able to withdraw early on, which makes them believe the platform is legitimate.

Victims tend to increase their investment based on the returns they’ve seen, or they may be pressured to invest more by the scammers. They see reports of regular profits and eventually decide to make a large withdrawal. At this point, the hammer drops: They’re told that they need to pay taxes, about 15%-25% of their profits, and will need to find additional funds. Then they’re told that their account is frozen due to securities fraud or money laundering. They never get their (fictitious) earnings, nor will they recover the money they invested.

Eimiller advises against sending money to an investment platform just because someone you met online or over the phone advised you to do so.

“Most of these investment returns do not even mathematically make sense, but people want to trust those who pretend to be their friend, colleague or potential partner,” she wrote in an email. “And the use of third-party investment platforms seems to disarm people. In their eyes, they’re not giving their money to a stranger, they’re investing with what they are convinced is a legitimate investment company.”

Summer Lin

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December 15, 2023
Man pleads guilty to defrauding millions from deceased Malibu doctor using drugs, deception

A 47-year-old Fresno man pleaded guilty Thursday to stealing millions of dollars with his former girlfriend from a Malibu doctor in an elaborate scheme involving deception and psychoactive drugs before his death in 2018.

Anthony David Flores, also known as Anton David, pleaded guilty to nine felony violations for his role in the scheme, including wire fraud, mail fraud, money laundering and conspiracy. His ex-girlfriend, Anna Rene Moore, 40, had pleaded guilty in August to seven felony violations in the same case, according to Flores’ plea agreement released by the U.S. Department of Justice.

In 2017, Flores and Moore met ophthalmologist Mark Sawusch, a wealthy Malibu doctor and savvy investor with a net worth of $60 million. Sawusch had been experiencing severe episodes of mental illness that had led to his hospitalization and later his arrest.

Within days of meeting Sawusch, federal prosecutors said, Flores and Moore moved into his home and began pretending to be his caregivers and friends. They lived with Sawusch from September 2017 until his death in May 2018.

According to the plea agreement, Flores convinced Sawusch to grant him power of attorney during a severe mental breakdown that September, which ended in his arrest. The move was meant to be only for Flores to pay Sawusch’s bail, but the power was never revoked after his release from jail. Flores used the power of attorney to open bank accounts in Sawusch’s name and gain access to his money, prosecutors said.

Days before Sawusch’s death, Flores and Moore gave him LSD, which sent Sawusch’s mental health into a tailspin, authorities said. While Sawusch was under the influence, Flores changed the two-factor authentication on Sawusch’s brokerage account to go to Flores’ phone, then initiated two $1-million wire transfers that ended up in his and Moore’s bank accounts.

Sawusch died alone in his home that Memorial Day weekend. The plea agreement revealed that before his death, Flores and Moore had been surveilling Sawusch via the security cameras in his house from a luxury hotel in Santa Monica.

After his death, Flores and Moore continued to withdraw money from his accounts until Sawusch’s mother and sister sued them. The funds were frozen, and Flores and Moore attempted to salvage the funds through various money-laundering schemes.

In late 2018, Flores and Moore claimed Sawusch had promised them his house and one-third of his estate but was unable to change his will before his death. The ensuing litigation over Sawusch’s estate resulted in the pair withdrawing their claims and agreeing to repay the estate $1 million, which has never been fulfilled, according to authorities.

The pair moved to Mexico during the COVID-19 pandemic, where they later split up. In December 2022, a Los Angeles grand jury indicted both of them on suspicion of defrauding Sawusch. Flores was arrested at his home in Fresno, and Moore was arrested at a Houston airport. Both have been in federal custody since January.

Flores faces a maximum sentence of up to 20 years for each fraud count, 10 years for each money-laundering count and up to 20 years for the conspiracy charge. He is scheduled to be sentenced on Feb. 26, while Moore’s sentencing is set for Jan. 22.

Jeremy Childs

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October 19, 2023
Do You Need a Business Checking Account for Your Startup? It Depends.

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When you’re establishing your startup, it can be a challenge to choose the right bank and the right business checking account, particularly if you have limited business experience. You need a bank account that not only meets your current needs but will grow as your requirements evolve with your expanding business.

You might be wondering if you need a business checking account. While a personal checking account will perhaps meet your needs for your basic day-to-day business activities, you need to consider whether you need a business loan in the future or want to hold profits in a savings account.

Your new checking account can be the start of your banking relationship, so you can start to establish goodwill and trust. However, while the bank is important, the characteristics of the checking account are also vital. So, here we’ll explore how to choose a business checking account for your startup.

Think about what you need from your bank

The first thing you need to consider is what you need from your bank. Are you just looking for a checking account or do you also need a small business loan? There are lots of banks that not only offer a variety of business checking accounts but also have great business product lines such as business loans and lines of credit, business credit cards and tax counseling.

While you may be looking for a checking account to handle your checks and manage client payments, you may need a line of credit or other products in the immediate future. So, take some time to think about your immediate and potential future needs to see which banks can meet your requirements.

Once you have a short list of things you need from your bank, you can start comparing the offerings from different banks both in your area and nationally. If you are considering a couple of banks, you can speak to their customer support team and obtain product information or even schedule a meeting to discuss your requirements.

However, if your startup will only require basic account services, you could consider online banks. These tend to offer various products with minimal fees. The downside to this is that you don’t have face-to-face interaction, and depositing cash can be tricky.

Related: 5 Signs It’s Time to Switch Your Business Bank

Considerations for choosing a business checking account

1. Location restrictions

Even if you’re not looking at an online bank, some traditional banks put location restrictions on certain accounts. If you’re considering a business checking account that has very low fees, it is worth checking if it is online only.

Depending on your operation, you may need to speak to a bank representative in person, pay in cash or send certified checks. In these scenarios, having a business checking account that does not have branch access could be a problem.

2. Digital tools

Most modern startups benefit from digital tools such as mobile deposits, and digital bill payments. So, it is well worth assessing what digital tools are offered with the checking account.

Many banks and financial institutions have an app that allows you to manage your account on your mobile device. Make sure that you check the reviews for the accompanying app to see if there are any potential issues.

3. Fees

As with a personal checking account, the fees for your business checking account can quickly add up. For most startups and small businesses, every cent counts, so it is crucial to check the fee structure for your new checking account before you sign up. If your bank offers fee waivers for monthly maintenance charges, be sure to check the criteria to ensure that you can meet the minimum balance needed to waive it.

4. Relationship perks

Many banks offer some great perks, such as fee waivers and preferential rates if you link multiple accounts. So, it is worth checking if the bank holding your personal checking account offers relationship perks if you open a business account.

You may find that your existing bank will provide some excellent account options and since you already know and enjoy the bank, you can feel confident with your new business checking account. On the other hand, if there are no benefits to having the same bank for your personal and business accounts, don’t feel obliged to stick with them.

Related: 5 Items You Must Have to Open a Business Bank Account

5. Additional debit cards

When you have a startup, you’ll have plenty of administration tasks that will keep you busy every day. So, it can be very handy if you can provide your trusted team members with a company debit card.

This means that you won’t need to micromanage essential purchases or deal with annoying reimbursement requests.

6. Business savings accounts

Another important consideration is whether the business checking account has an accompanying or compatible savings account. While some business checking accounts are interest-bearing, you may still have startup capital that would be better in a savings account.

A compatible savings account would allow you to keep your funds on hand for when they are needed. Some banks even facilitate automatic transfers. This will transfer funds from your savings account if the checking account balance reaches a certain threshold. This is a great feature, as you don’t need to worry about going overdrawn or having payments refused, yet you can still be earning a higher rate of interest.

7. Additional resources

Finally, it is worth checking whether your new business checking account provides access to additional resources. Many banks appreciate the challenges of operating a startup and offer help and guidance. This could be something as simple as a learning center that offers live webinars, informative guides, or access to a business banking manager.

8. Business vs. personal checking account

There are several good reasons to keep a separate checking account for your business if you own one. According to the SBA, business banking offers some personal liability protection by keeping your personal and corporate funds apart. Check writing and debit cards are features that both personal and business checking accounts can provide.

A company checking account, however, could provide benefits that a personal checking account does not. While some personal checking accounts can be opened for as little as $1, depending on the bank or credit union, a business checking account may cost $500, $1,000, or more to open. Combining your personal and commercial operations in one checking account, if you plan to do both, can make bookkeeping difficult and tax season a nightmare.

Bottom line

Once you have begun your startup, you are likely to be excited to get working on your core business, but the right checking account can be an ally or a hindrance. The right checking account will provide you with the tools and services your startup needs.

Baruch Mann (Silvermann)

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November 29, 2022