U.S. Issues Tougher Rules for South Florida Check-Cashing Facilities

Federal authorities have issued tough new rules on check-cashing businesses in South Florida as part of the ongoing fight against rampant identity theft and tax fraud.

The Treasury Department’s order applies to federal tax refund checks over $1,000 in Miami-Dade and Broward counties. Customers attempting to cash them will undergo greater scrutiny: they’ll have to pose for a digital photograph, provide a thumbprint and give a telephone number.

The order will apply to check-cashing stores in the two South Florida counties from Aug. 3 through Jan. 30, 2016.

A typical scheme involves a tax refund fraudulently obtained through identity theft. Internal Revenue Service officials say the check is frequently cashed by a person using the stolen identity.

Authorities say South Florida is a national hotbed of these fraud schemes.