Why You Can't Use a Closed Account Check to Open a New Account
Trying to use a check from a closed account to open a new account is a recipe for disaster. Not only is it incredibly risky, but it’s also a form of check fraud, which is a serious criminal offense. In this article, we’ll explore why this tactic is not only ineffective but potentially illegal and dangerous.
The Risks of Opening a New Account with a Bad Check
Your plan has almost no chance of success. When you open a new account, the bank will hold your deposit for several days to determine if the check ultimately clears. Even if the check does clear and you are able to withdraw the money, you will ultimately end up in legal trouble. The consequences can be severe, including fines, prison time, and damage to your financial reputation.
The key takeaway is that attempting to use a check from a closed account to open a new account is not a smart or legal strategy. It is a form of check fraud and can land you in federal prison.
Check Fraud and the Nigerian Scam Model
This practice is similar to the infamous Nigerian scam, also known as the advance fee fraud. These scams rely on your ignorance of check fraud timing. The scammers send you a bad check, and if you are waiting for it to clear, you may end up with no money and additional fees from your bank for the bounced check.
Do not fall for this trap. Instead, avoid scams and protect yourself by understanding the financial risks. Trust no one who offers a method to do something illegal. They may be accessories to the crime you wish to commit.
The Plausibility and Illegality of the Proposal
Your proposal is not only implausible but illegal and dangerous. Here's why:
No bank will give you any money from a check you present, whether you deposit it or try to cash it when it is not drawn on the bank where you are opening the account.
The bank has no idea if the check is good if payment was stopped, or if the check was stolen.
Large banks may hold a significant portion of the deposit as an initial hold for a new customer. This hold could last up to 10 business days, or two weeks.
Even if the check is deposited, unless it is from the US government, Social Security, IRS, a state or local government, or a known business drawn on their bank, the check is not considered good.
Moreover, the days of paper checks moving through the banking system are over. Every check and its embedded codes are captured and digitized. Banks can instantly verify the validity and goodness of the check.
Conclusion
In conclusion, attempting to use a check from a closed account to open a new account is an incredibly risky and illegal practice. It can have severe legal and financial consequences. Avoid scams, understand the risks, and always proceed with caution. If you encounter any suspicious activity or offers, report them to the appropriate authorities.
Stay safe and avoid any methods that suggest engaging in illegal activities.