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#2066199 - 02/26/16 01:22 PM Checks on a closed account.
Becca1 Offline
Junior Member
Joined: Mar 2013
Posts: 44
We have a former customer who appears to be writing checks that have our routing number on them with an account number that are not one of our numbers. When these checks come in, they are returned unable to locate because they do not have a valid account number for our institution.They appear to be written out of area. The amount is adding up. Does this require a SAR? To be reported as Check Fraud. Any suggestions or thoughts?

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BSA/AML/CIP/OFAC Forum
#2066221 - 02/26/16 02:43 PM Re: Checks on a closed account. Becca1
thomasj Offline
Power Poster
Joined: Mar 2001
Posts: 5,062
Pennsylvania
I would not be so sure that it is your former customer that is writing the checks. We have had checks come in with our routing number and an incorrect account number several times - some with actual customer or former customer information some with completely unrelated information. In our cases the checks were printed up by traveling check cashing rings and/or in connection with card cracking rings.

If you don't know that it's your customer that's writing the checks and you have no knowledge of who actually is - once the SAR threshold of $25,000 for no known conductor is reached, you should file. If you know or strongly suspect your customer is involved, use the standard $5,000 threshold and report it.

In our case, the report led to a capture and conviction of an individual who was a career criminal who had been traveling through small towns bilking mom and pop stores that cashed checks out of tens of thousands of dollars.
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#2066226 - 02/26/16 02:49 PM Re: Checks on a closed account. Becca1
Becca1 Offline
Junior Member
Joined: Mar 2013
Posts: 44
Thanks for the feedback.

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#2067455 - 03/03/16 09:37 PM Re: Checks on a closed account. Becca1
madukes Offline
Diamond Poster
madukes
Joined: Jul 2009
Posts: 1,448
Flyers Country
We are starting to see an increase in counterfeit items drawn against legitimate accounts. We've been tipped off a few times by out of state calls from banks to verify the checks and are able to flag the account to prevent the items from paying.

We've lately had a number of items come through with our ABA and a bogus account number - we're in the Northeast, the checks are showing as written on Midwestern banks - several different "maker' names and the same payee names appearing on the items. Of course they are returned since the account does not exist. I've been providing copies of the items to our Loss Prevention investigator to monitor and file any necessary reports.

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