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April 22
A Banker's Guide to Virtual Currency
Andrew Beal

April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina



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#1725985 - 08/01/12 01:43 PM Identity Theft and Check Deposit
Wallpe Offline
New Poster

Registered: 03/05/10
Posts: 3
We have a customer that opened an account 7 years ago. She went to another office and opened another account using the same SSN but a different name. The new account was opened before we were able to determine that this individual was using the same SSN but 2 different names. We now know the SSN and supporting documents were purchased and belong to someone else. Our problem is what do we do with the check, funds, that were deposited into the new account with the fraudelent name and SSN? The check was proceeds from a 401(k) for over $12,000. A 10 day hold was placed on the funds and due to expire in a day.

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Deposits and Payments
#1726183 - 08/01/12 04:46 PM Re: Identity Theft and Check Deposit [Re: Wallpe]
Ken_Pegasus Offline
10K Club

Registered: 08/30/01
Posts: 16671
Loc: Another trip around the sun
I'm assuming your initial hold period was based on a "new account" exception hold. Any hold you impose right now would be based on the facts and circumstances surrounding the transaction, not a reference to specific law or regulation.

In your shoes, I would call the customer and ask "What's the deal?" Depending on what explanation is offered, I might then call the issuer of the check.

Please don't misunderstand, I am not saying I would not put on a meaningful hold (perhaps based on reasonable cause to doubt collectibility) I would just gather all the information I could first.
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We are Boston. We are America. We respond. We endure. We overcome...and we own the finish line. Joe Biden

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#1726184 - 08/01/12 04:49 PM Re: Identity Theft and Check Deposit [Re: Wallpe]
milby Offline
Platinum Poster

Registered: 04/26/07
Posts: 841
Loc: Dallas, TX
I'd start by calling the non-profit and ask if the check is valid - non-profits are notorious for not keeping an eye on their accounts. That might prompt them to file a dispute and you can use that info to extend the hold for "we believe this check will be returned unpaid."

In any case, the only person that can withdrawal from the account is the true owner - you have verified that the person that actually opened the account isn't who they say they are, sop they can't withdrawal. You don't havea valid signature to compare withdrawals to, so just return anything that attempts to post. That will buy you as much time to figure out what to do with the money as you need.

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#1726194 - 08/01/12 05:02 PM Re: Identity Theft and Check Deposit [Re: Wallpe]
Kathleen B Online

10K Club

Registered: 12/27/00
Posts: 16553
I'm confused. What non-profit?
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#1726214 - 08/01/12 05:31 PM Re: Identity Theft and Check Deposit [Re: Wallpe]
HappyGilmore Offline
10K Club

Registered: 06/11/04
Posts: 17220
Loc: Moron, Mongolia
if you've determined that the person whom opened the account did so with fraudulent identification, then i wouldn't be letting anyone withdraw from the account...regardless of their name...and law enforcement would be involved for identity theft...
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When life gives you lemons...squirt the juice in your tormentors eyes...that stuff burns!

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#1727522 - 08/05/12 08:44 AM Re: Identity Theft and Check Deposit [Re: Wallpe]
Kt, CCBCO Online
Member

Registered: 11/03/10
Posts: 63
Loc: State of Confusion
I would refer to your Red Flag Identity Theft Prevention Program. It should outline what steps need to be taken.
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Opinions expressed here are based upon my experience, strength, and hope.
They are not those of my employer.

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