We recently discovered forgeries on a customers account totaling over $19,000. They started 2 1/2 years ago. The customer has been getting her statements but had not noticed the missing money. How much are we responsible for if any? 60 days from the last statement??

Depending on your state's UCC, your deposit account agreement, and the particular circumstances of the case, you liability could be anywhere from the past 12 months of activity to zero.

Have all of the forgeries been done by the same perpetrator?

Yes, all check were made out to the same lady and deposited into an account at another bank.

This looks like an ongoing fraud by a single bad actor. I'd strongly recommend that you start bouncing any future checks of this nature, marking them "signature irregular" or something similar. Don't use "forgery," since you haven't received a forgery affidavit from your customer.

It's possible that your customer has knowingly permitted these checks to be issued and paid. That gets you off the hook. It's also possible your customer has more money than common sense, and has simply not reviewed her statements, or otherwise seen evidence of the forgeries.

I recommend you review the "same wrongdoer" provision of section 4-406 of your state's version of the Uniform Commercial Code. That is where your defense strategy should start.

Thanks John, we weren't sure where to start.

Our customer's an elderly lady who has had the same person taking care of her of over 5 years, she was like family. Unfortunately 'family' to this girl means helping yourself to $19,000! Our customer had no idea and I think is still in denial.

Check into the elder abuse statutes in your state. You wouldn't have to prove fraud, only suspect it. The agency you report to will be able to then get legal aide involved as they investigate the issue, and you would be afforded safe harbour.