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#2131499 - 05/23/17 03:49 PM Fraudulent Check Deposit & Fake ID Withdrawal
Anonymous
Unregistered

If an individual deposits a fraudulent check to a bank account (not their account) and then comes in soon after to withdraw cash from that same account using a fake ID with the account owner's name, is the bank liable for the withdrawn funds?

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#2131508 - 05/23/17 04:13 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
BrianC Online
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Illinois
Yes.
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#2131591 - 05/23/17 09:29 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
RockChucker, CAMS Offline
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The Country
Brian is correct, the bank of deposit would be liable.
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#2131593 - 05/23/17 09:43 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
Anonymous
Unregistered

Thank you both. That was my answer, too, but another bank is not agreeing.

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#2131606 - 05/24/17 12:43 AM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
Rocky P Offline
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Anon, it's easy - have them get another impartial decision.

"Your Honor, who is right?"
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#2131611 - 05/24/17 02:42 AM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
JacF Offline

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Posts: 6,719
PA
Liable to whom?

The bank that allowed the withdrawal for the imposter is liable to its depositor.

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#2131612 - 05/24/17 02:50 AM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
BrianC Online
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BrianC
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Illinois
So perhaps we don't have all the facts here. If the drawee bank paid a counterfeit check and failed to return it by its midnight deadline, what happened at the bank of first deposit is irrelevant to the drawee bank. The drawee bank would be liable to its depositor for paying a counterfeit or forged check.
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#2131619 - 05/24/17 12:40 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,185
Pulling people out of the ditc...
John Fraudster deposits a check at ABC Bank into the account of Bill Customer, check is fraudulent (how, we don't know yet) and written against XYZ Bank. Check clears, and next day John Fraudster enters ABC Bank with ID showing him to be Bill Customer and removes the same amount of funds deposited previous day.

Bill Customer is not out any money.

John Fraudster is walking away with whatever the amount is, chances are you will never find him

ABC Bank may or may not be out any money, depending on how the fraudulent check was returned to them, if it even was. If it was returned timely to them, they suffer a loss.

XYZ Bank would need to make a claim for fraudulent item (signature, altered amount, altered payee, other?) back to ABC Bank within the proper timeframe. If no claim made, or made untimely, then XYZ Bank is out the money. Depending on the claim type, timing of notice from their customer, and their account agreement, they may owe their customer funds.
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#2131644 - 05/24/17 01:56 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
Anonymous
Unregistered

Our bank is actually not involved in the transaction at all. The customer just happens to be both our customer and a customer of the other bank. They just told us about the situation, and the teller brought it to my attention because they thought it was strange. The other bank's fraud officer is telling the mutual customer that they (the other bank) aren't liable in this case to return the funds to the account owner.

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#2131843 - 05/25/17 12:19 AM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
BetsyS Offline
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Joined: Jun 2009
Posts: 468
It may be an issue of the reporting timeframes in his Depositor contract with the bank. He should take a look at the agreement; most clearly spell out error reporting timeframes and liability.
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#2131867 - 05/25/17 01:00 PM Re: Fraudulent Check Deposit & Fake ID Withdrawal [Re: Anonymous]
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,185
Pulling people out of the ditc...
Quote:
Our bank is actually not involved in the transaction at all.

then I would not bother wasting time researching the "what if" scenarios...
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