We received a request to sign an indemnification letter and return funds arising from two checks deposited into our customer's account last year. There is no evidence of forgery or alteration, the requesting bank simply states that the checks were "unauthorized".

Since we have no idea if our customer has done anything to become unjustly enriched, my inclination is to deny the request. Without more facts, I do not feel it is fair to our customer to return funds almost a year later when there is no evidence our customer acted inappropriately or illegally.

Am I way off base here? Thank you.

No. but did you analyze the account for what they did with the funds?

No, you are not off base. The term "unauthorized" is certainly vague and doesn't necessarily mean your customer did anything wrong-or that your FI did anything wrong, either. I would though, watch that account a wee bit more closely.