Counterfeit Checks & SARs
Question: Our customer brought in a counterfeit check from his statement. His account number, and the route and transit number are correct, and his name was used, but the address and phone number on the check are not our customer's. I've given our customer back his $2,100 after he completed the forgery/fraud affidavits. Should we file a SAR on this? It's less than $5,000. I'm filing the case with our local police department.
Answer: Yes, you should file for identity theft - but don't use your customer's name as the subject of the Suspicious Activity Report. If you do so, the data would indicate your customer as the perpetrator rather than the victim! Your customer's name should go in the narration of the SAR. This type of crime falls between fraud and identity theft. The address used could be part of another incident that would help in another investigation.
The confusion on the filing of a SAR may be because it says you MUST file if the loss is over $5,000. However, communication from FinCEN is that you MAY file, even if there is no loss whatsoever, so feel comfortable in filing, even if your loss is less than $5,000. I was glad to know you closed the account immediately. Good move.
Copyright © 2004 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 14, No. 3, 7/05
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