Can anyone out there explain, in simple terms, the difference between fraud and identity theft when it comes to filing a SAR? For example, how would you complete a SAR for a "forged endorsement or signature" (assuming the reporting requirements were met)......would you report it as fraud or identity theft? Can you point me to any resources that discuss this?

I'm sure you will get other opinions, but here is mine for what it is worth.

Identity Theft is a form of fraud, so I don't think it is critical whether you use "fraud" or "identity theft" on the SAR. In my opinion, a simple case of a forged signature or endorsement does not necessarily constitute identity theft. ID Theft usually goes much deeper than that and usually involves stealing a person's ID to open new accounts, loot existing accounts, or illegally obtain information about the victim. A good definition of ID Theft can be found at Types of ID Theft It's your call, but your situation sounds to me more like fraud than Identity Theft.

If there is no clear definition between identity theft and fraud, how will you determine when to have an "ID Theft Affadavit" completed?

I may be wrong, but I understand that the ID Theft Affidavit is used to notify such entities as the credit bureau, creditors, etc. of the fact that your identity has been stolen and used to obtain credit, open other types of accounts, or illegally obtain confidential information about you. Since you did not mention anything about any of this (there was a forged endorsement or signature on a check) I would say an ID Theft Affidavit would not be necessary. However, if someone stole your customers checks and then made false ID documents such as a driver's license and used that ID to negotiate the checks, then maybe an ID Theft Affidavit would be in order to present to the parties victimized by the stolen checks, and to report to such people as ChexSystems.

Thanks for spending time on this with me Retread. I guess I did take this a different direction after you responded to my initial question. I agree that with the SAR the important thing is that one is filed. However, I am reading section 605(e) of FCRA. If a consumer comes to the bank (their first stop), asserts they are a victim of identity theft and requests documentation from bank records (relating to frudulent checks, unauthorized transactions, credit cards/loans not initiated by them) wouldn't we want to assist them in completing an "ID Theft Affidavit" for both our records and for their use to alert credit agencies, service providers etc? When I have discussed this with management, we always seem to stumble over the definition of identity theft vs. fraud.

Am I making this more difficult that it has to be?

No, I don't think you are making it too difficult. There is no question there is fraud, the main question appears to be if ID Theft is involved. There is so much publicity about ID theft that some people are paranoid, and rightfully so. I don't see any harm in assisting with an ID Theft Affidavit, but I think the question you have to ask the customer is whether or not they have any indication that their ID has been compromised, other than the forged signature/endorsement. I could see where there could be some drawbacks to notifying everybody that you are the victim of ID theft if the only thing you have to report is one single forged check, and I'm not sure the customer is ready for that. In other words, why alert every credit bureau, creditor, etc. when this may be a one-shot deal?

By the way, I may be unavailable for a while, so don't think I have abandoned you if I don't respond again in a timely manner.

ID Theft occurs, primarily, when a fraudster acts on your behalf in opening accounts, etc. in your name. Assuming your identity allows him/her to access these accounts that he/she has opened in your name. You don't know they exist, generally. A stolen and forged check does not constitute ID Theft. ID Theft, with all its publicity, has become somewhat of a catch phrase among customers. It is our job to keep things in perspective.

I use check fraud.