Former Scammer Details How He Learned to Perform Check Fraud from Behind Bars
- BMG is a former scammer and current YouTuber
- He was able to learn fraud methods while incarcerated
- He now passes along fraud techniques to help potential victims protect themselves
A factor that we commonly bring up when discussing fraudsters is their willingness to teach each other the tips and tricks needed to commit check fraud. And, while many times this occurs digitally through social media and other messaging platforms, there are still those who learn in-person...and, in today's case, in a prison cell.
YouTube influencer BMG Capo is a reformed criminal and fraudster who has dedicated his channel to teaching financial literacy to his subscribers, while also telling stories about his colorful past in hopes that people can learn from his mistakes.
In a recent video, BMO CAPO explains how he learned to commit check fraud from his cellmate. After observing his cellmate scratching words from a book, he asks what he's doing and is informed that this is how an individual can scratch off a payee and/or amount from a check. While initially skeptical, it launhed BMG CAPO's check fraud career when he was released a few months later in 2019.
The Progression of a Fraudster's Tactics
BMG CAPO describes his first time committing check fraud. He was given a check and, after a week of hesitation, used a razor to remove the payee. After purchasing a typewriter for $40, he finds a mule to cash the check at Walmart. While not perfect by any means, the fraud was successful led to his shift from "trapping" -- slang for selling drugs -- to focusing on check fraud.
This first success, he explains, led him down the path to stealing checks from mailboxes and committing more check fraud. Then, as fate would have it, he met another person with "check software" that creates checks digitally. This is where he moves from altering checks to "cooking" checks digitally.
It doesn't stop there. While stealing mail, he encounters credit/debit cards, leading him to learn more about committing card fraud.
BMG CAPO ended up being caught and back behind bars. However, he notes that committing check fraud was the most profitable business for him and resulted in the least amount of time in jail.
BMG CAPO's other videos are valuable as well for gathering insights into the minds and tactics of a fraudster:
Lessons Financial Institutions Can Learn from These Videos
As noted in the channel's description, these videos are for educational purposes. While you could argue that some may try to use the information to start committing check fraud, there are valuable takeaways that financial institutions and #FraudFighters can obtain from these videos.
- Fraudsters are communicating: As we see in the video, BMG CAPO got his start by talking to his cellmate and learning the fundamentals. From there, he reached out to others to acquire more tactics like check cooking,
- Fraudsters evolve their tactics: From starting out with simple methods like using a razor blade to remove the payee, to learning how to cook checks with computer software, fraudsters will continuously evolve.
- Fraudsters learn quickly: We see how BMG CAPO learned about the patterns of individuals and adapted his methods to their behaviors.
Fortunately for FIs -- and unfortunately for fraudsters -- technology has caught up with fraudsters when it comes to check fraud. New advancements and analyzers are available to interrogate both both on-us and deposited check images, analyzing each check field along with the borders and security symbols.
In other words: Iif any viewer of BMG CAPO's channel is looking to get their start in check fraud, they better think twice.