Automatic debits from your checking account can be a legitimate payment method; many people pay mortgages or make car payments this way. But the system is being abused by fraudulent telemarketers. You may be asked to read off the numbers at the bottom of your checks to qualify for some “prize.” Once a telemarketer has your checking account information, it is put on a “demand draft,” which is processed like a check. The draft has your name, account, and states an amount.  Unlike a check, however, the draft does not require your signature. When your bank receives the draft, it takes the amount on the draft from your checking account and pays the telemarketer’s bank. You may not know that your bank has paid the draft until you receive your bank statement.