4/1/2023 0 Comments Bank of america checkbook![]() ![]() Banks may also freeze or close your account or take money from other accounts you have at that bank, bring suit against you to recover the funds, or report you to a checking account abuse database i. In addition to collecting funds from you, the bank may also charge a fee, particularly if the reversal results in NSF checks, etc. Until the bank confirms that the funds were actually deposited into your account, you are responsible for any funds drawn against that check. ![]() In the meantime, you’re responsible because it is assumed that you are in the best position to determine the risk of accepting the check – you dealt with the person who gave it to you. The real company does not become aware of these charges until they appear on their statement. Say for example that the check allegedly came from a real company (as was the case in a blog post recently made by ERAI titled: Bad check scam – ERAI Members’ identities being used to commit fraud). ![]() Your bank then sends the check to the source. Your bank accepts the deposit based on your identification – they have no information about the source of the check. Processing a payment actually takes longer than 1-5 days. The problem is, while the funds are available, the funds are not really yours until the check “clears”. Official checks, such as US Treasury checks, government checks and bank checks are usually made available one day after deposit. Under federal law, banks are required to make funds available to you within 1-5 days. You may be asking yourself why can you be held responsible and the bank not. These counterfeits range from cashier’s checks and money orders to corporate and personal checks. High quality printers and scanners, authentic-looking watermarks, copied facsimile signatures, authentic names and addresses of legitimate financial institutions, as well as real routing numbers and account numbers are all being used to perpetrate this fraud. The Federal Trade Commission reports that not only are counterfeit check scams occurring more frequently, the counterfeit checks are becoming harder to identify. You may be surprised to learn that depending on the circumstances and your state’s laws, the person who cashes or deposits the fraudulent check may be held responsible. Check Fraud – Who is Liable for a Fake Forged Check? ![]()
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