SAR for Check Fraud?

Posted By: Banker Drysdale

SAR for Check Fraud? - 09/22/15 01:30 PM

We have a (former) customer who has continued to write checks off an account that we closed 8 months ago. To date, he has written about 50 checks totaling over $10,000. Is this a SAR event? All the checks are returned "account closed" and the bank is not taking a loss, which I know is not a factor. To some extent, I feel like the check fraud is against the merchants who are accepting the checks and not against the bank. How do other banks deal with this issue?
Posted By: MagicCity

Re: SAR for Check Fraud? - 09/22/15 01:35 PM

In those circumstances we would file a SAR for fraud, because the transactions are coming to your bank.
Posted By: ACBbank

Re: SAR for Check Fraud? - 09/22/15 02:01 PM

We follow the same process as Magic indicated.