FTC sues Qchex and FreeQuickWire for assisting check fraud

The U.S. Federal Trade Commission has filed a civil contempt complaint against an online check-writing service, saying the company continues to allow customers to create and e-mail checks without verification of their identities. Even after a January court order requiring Thomas Villwock, James M. Danforth and G7 Productivity Systems to implement fraud prevention safeguards at online check-writing service Qchex.com, the defendants continue to operate a "nearly identical" operation at FreeQuickWire.com, the FTC said in a complaint filed with the U.S. District Court for the Southern District of California. The defendants are "engaged in business as usual" FreeQuickWire.com, even though the court in January issued an injunction and said their business model could help customers engage in fraud by stealing funds from unsuspecting people's bank accounts, the FTC said. Posted in: Check Fraud