A corporate customer's account was recently compromised. Information from an authentic check was used to create fictitious checks. Numerous $100 checks were negotiated. The fake checks don't include a payee name. In addition, the checks don't have any type of endorsement. If we consider these checks bearer instruments, and no endorsement is required by UCC, do we have any recourse with the institution who processed the (fictitious) checks, or is the loss on our side since the customer failed to identify the fake checks in time for a timely return?
I was asked today, on our bank's affidavit of fraud and forgery form for checks that have been cashed fraudulently, why we require it to be notarized. Is this required? The people who created the form and implemented it are no longer here. We are trying to figure out if a customer has check fraud, on our form that customers sign, does the bank have to have a section so it is notarized?
We returned three checks that were written on 8/22 and 8/23 as forgeries. Today, I received a claim of late return. I thought we had 60 days to
return these; can you please clarify the parameters for this?
We have a business customer that mailed a check to a business for payment, and that payee is claiming they never got the payment. We can see the check cleared our customer's account in February 2018. We feel it could have been intercepted by a third party and negotiated. The BOFD did confirm that the check was negotiated at their institution, but obviously can not confirm who the third party is, or if it is in fact a third party. Do we have any recourse on this? We were thinking a warranty claim but do not have much experience with this or where to find those forms.
Is the bank liable for cashing an on-us check that was forged by the daughter of our customer? There was no stop-payment placed on the check.
Our customer wrote two checks to the same payee, one was dated 2/10/12 the second was dated 4/10/12. Towards the end of July, the payee notified our customer that he did not receive the checks. He signed an Affidavit of Forged Endorsement and we returned the check as fraudulent along with the affidavit. The depositing back disputed the item as a late return. Is there anything we can do now? Can we possibly claim breach of warranty?
A customer notified the bank of forgery on checks drawn on our bank. These were counterfeit checks with a forged signature which were cashed by our tellers. The tellers exercised ordinary care: verified the signature card, obtained proper ID and a thumbprint. But these counterfeit checks were too good and almost identical to the real thing. The customer notified us within the correct time; therefore, we refunded the money. A state police officer said that the bank is not the victim; the customer is the victim, so we didn't have to refund their money. The customer is victim of check fraud, not us. I realized that the police officer may not know of banking regulations, but is there any truth to this? I thought, per the UCC, that the Bank is liable for this. We cashed the checks and they had a forged signature; therefore, we take the loss.
How long after a check has been paid can it be returned for forgery? What is the best way to handle the return?
What is the statute of limitations in each state for someone to submit a forged endorsement claim (ucc 4-406)?
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?