How a B.C. business owner lost over $12,000 despite having bank check authenticity of bank draft

A B.C. business owner is warning others after he received a fraudulent bank draft and lost thousands of dollars in merchandise despite having the issuing bank check the draft’s authenticity.

“For them to take it in hand and look it up and verify it and give me the green light that just blows me away,” said Anthony Daem of Central Valley Tire.

The Surrey tire shop owner said last month, a customer reached out to him by phone about purchasing two sets of gravel truck tires worth thousands of dollars.

The two agreed on a price and Daem said he made sure to document the customer’s ID before processing the credit card. The card declined, but Daem said it wasn’t unusual given the large purchase price.  The customer then suggested paying with a bank draft.

“I said that’s great. I prefer a bank draft. There’s no credit card fees,” said Daem

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When Daem, finally received the $12,305.44 bank draft, he says he made a photocopy of the customer’s driver’s license and took an extra security measure.

He drove to the local TD Bank where the bank draft had been issued. Daem said he spoke with the TD branch manager.

“(I) handed her the draft and asked her if she could verify that this is legitimate. She grabbed it from me and looked it up and said ‘yes this was purchased here and everything looks good’. I said ‘we are good right?’ She said ‘yup all good’,” said Daem.

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Feeling confident, Daem released the tires to the customer. However, two days later Daem said he was notified the bank draft was counterfeit.

“It was a massive hit,” said Daem.

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Daem said he wants TD to be held responsible and said the draft should have been checked more carefully.

“I feel they should have done more. They should have looked deeper into that draft,” said Daem.

“The TD branch won’t give me answers. My bank is only relying on what their department is telling them which is next to nothing.”

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Consumer Matters reached out to TD Bank on Daem’s behalf.

TD has since issued Daem an apology along with a cheque for $12,305.44.

TD stating:

“Like cheques, bank drafts can also be forged. It’s always important to know who you’re doing business with, whether you’re sending or receiving money. Be cautious when engaging in any financial transaction with someone you don’t know.” 

Also adding:

“Bank drafts are validated once they’re deposited and processed by the negotiating institution and can be returned if found to be counterfeit. If accepting a bank draft as payment, it’s advisable to wait until the draft has cleared and the money has been confirmed before completing a sale.” 

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Daem said despite TD’s apology, he won’t be using bank drafts in the future. “Be very careful.  Don’t be surprised.  Anything is possible,” said Daem.

TD says it continues to investigate Daem’s case.

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