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Wal-Mart's Security Practices Questioned

Woman Loses $1,400 in Check-Cashing Scheme

July 9, 2007
Wal-Mart's security procedures are under scrutiny after a California woman lost $1,400 in a check-cashing scheme, according to San Francisco's KGO-TV.

Alice McConlogue was reviewing her bank statement when she found more than $1,400 in unauthorized checks written to Wal-Mart. She alerted her bank, which issued a fraud alert and credited the money back into her account.

But that wasn't the end of her troubles, KGO Consumer Reporter Michael Finney said.

"Wal Mart is now out this money and they want us to pay them back," McConlogue said. Wal-Mart sent a collection agency after her, trying to get its money back, though the retail giant called off its hounds when KGO began investigating.

McConlogue says this might not have happened if Wal-Mart required ID when buying something with a check.

KGO decided to investigate further.

It gave an employee a blank check and asked him to make a purchase at Wal-Mart. He successfully bought an answering machine using someone else's check. The cashier never asked to see his ID.

"I felt that there should have been some sort of security in place. I felt that anybody's identity was vulnerable," said KGO's Derek Fujihara. Apparently, Wal Mart only asks for ID the first time you use a check. Once you're entered into the system, no ID is required on most purchases, Fujihara said.

Wal Mart says its check cashing policy is in line with merchant guidelines.

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