Skip to content

Fake Checks w/o Payee or Endorsement

Answered by: 

A corporate customer's account was recently compromised. Information from an authentic check was used to create fictitious checks. Numerous $100 checks were negotiated. The fake checks don't include a payee name. In addition, the checks don't have any type of endorsement. If we consider these checks bearer instruments, and no endorsement is required by UCC, do we have any recourse with the institution who processed the (fictitious) checks, or is the loss on our side since the customer failed to identify the fake checks in time for a timely return?

If the checks were not properly payable and you paid them anyway, I am not sure that extends your midnight deadline. But I am not sure we have enough facts. I would sit down with your legal counsel.

First published on 09/12/2021

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics