May 30, 2024

I If Graphics

Transforming Houses Into Homes

Safe Keeping Receipt Fraud – Be On Your Guard

A safe keeping receipt is basically a document that is given to a customer to indicate that a bank is holding their valuables. This could be securities (like stock or bonds) or commodities (like gold or gems). This is not like depositing an amount of money in the bank. With a safekeeping receipt, the bank is not allowed to do anything with the valuable except store it. Safe keeping receipt can be abbreviated SKR. Sometimes an SKR is used interchangeably with IDR, or an International Depository Receipt. There is a current scam going around involving safe keeping receipt fraud.

An international depository receipt is a document that certifies that a customer has purchased stock from a different country. Banks started issuing these in the 1970’s to facilitate trading of international securities. Only the person issued the SKR can do anything with the valuables left with the bank, unless power of attorney is granted to allow access to the securities or commodities. The SKR fraud is executed when a con artist tries to convince you that you can give them money in exchange for this sort of bank guarantee or letters of credit. Often, unsuspecting consumers are offered a certified copy of a SKR by a trading bank.

Another form of this safe keeping receipt fraud is when the conman gets you to sign power of attorney over to them, allowing them to set up or clean out accounts in your name. Still another version is if you already have a SKR. If you sign it over to this grifter, it can be used by him as security for a loan for which you are responsible. In any of these scams, there are some terms that can throw up a red flag for you. Be careful if anyone tells you that they need you to sign over “power of attorney” to them. When someone promises you a “prime bank guarantee” from a “trading bank,” you should also beware.

SKR fraud can even extend to a “bank representative” offering to hold your current SKR and issue you a second receipt that certifies that this second bank is holding your original SKR. Consumers should fully investigate any business having to do with these receipts. Chances are it is an attempt at a fraudulent interaction with you. For more information on investing in investment opportunities usually or normally not found in the marketplace, click here!