04/02/2012
A customer notified the bank of forgery on checks drawn on our bank. These were counterfeit checks with a forged signature which were cashed by our tellers. The tellers exercised ordinary care: verified the signature card, obtained proper ID and a thumbprint. But these counterfeit checks were too good and almost identical to the real thing. The customer notified us within the correct time; therefore, we refunded the money. A state police officer said that the bank is not the victim; the customer is the victim, so we didn't have to refund their money. The customer is victim of check fraud, not us. I realized that the police officer may not know of banking regulations, but is there any truth to this? I thought, per the UCC, that the Bank is liable for this. We cashed the checks and they had a forged signature; therefore, we take the loss.
03/28/2011
How long after a check has been paid can it be returned for forgery? What is the best way to handle the return?
09/06/2010
What is the statute of limitations in each state for someone to submit a forged endorsement claim (ucc 4-406)?
12/08/2008
Among credit risk, market risk and operational risk, developing a good operational risk management program seems to be the most challenging. Can't our existing compliance processes (e.g., AML, Red Flags, GLBA, etc.) contribute to operational risk management?
12/01/2005
02/07/2005
I have a member that came in to to fill out an affidavit of forgery on a check that came through her account as pre-authorized signature. She clearly stated on the affidavit that she did authorize the check, but she now found out that this company is a scam. Member did come in within the 30 days from her statement to dispute. But do we have to honor her affidavit when she was at fault for giving out her account number to a company before researching the company?
03/15/2004
A opens checking account in 1997 -- balance never over 7500.00. In 2001, A fills out Membership/correction/update form and adds B as a joint owner. A has forged B's signature to the update form. 5 days later Bank receives in mail a check payable to B for 82,000.00. B`s endorsement in blank appears on back of check. Later detemined that the endorsement is forged. Account is now empty. B never contacted by Bank and no statements ever received by B, since update form shows B's address but the address is actually A's address. What standards of care should bank have used, if any, to verify the signature of B on the membership update form and on the endorsed check?
09/02/2002
I have been approached by a customer who banks with another financial institution for information because they have not been recredited for forgery losses that they reported to their bank. Their question is... Is there a specific time frame that a bank must follow in recrediting a customer who submits an affidavit of forgery for a forged makers signature? I understand that the customer has one year to report the forgery unless the account agreements specify a different time period, but I am not aware of any banking regulation that states that the bank has to provide credit to the customer within a specific time frame. Can you help clear this up?
09/02/2002
What is the time limitation on Counterfeit checks on without entry/or on a collection letter? What is the time limitation on forgery signature?
05/20/2002
Is a forgery SAR reportable?