What Happens If a Bank Returns a Check for Fraud?


Being the victim of fraud can be one of the most violating events that can happen to a person. Having someone compromise a bank account, wash checks or otherwise forge authorization forces someone into a financially compromised situation. Someone who has been given a check, deposited it and spent the money only to find out it was fraudulent may not be able to reclaim the money.

Bank Account

As soon as fraud is suspected with a fraudulent check, the bank will try to contact the account holder and/or freeze the account until an investigation can be done. For accounts that have been compromised, the bank will request the account be closed then re-opened, creating a headache for the account holder.

Police Report

When a check is returned for fraud, the police are immediately contacted by the bank. It is up to the account holder to file a police report in order to release liability for the fraud.

FDIC Coverage

Part of FDIC coverage is to insure bank depositors from fraudulent activity. If a police report is filed and the account holder is determined to not be involved in the fraudulent activity, the bank and FDIC absorb the costs.

Federal Offense

Once a police report is filed, federal investigators are called. Bank fraud is considered a federal offense and taken seriously.

Received Fraudulent Check

Those who are the recipient of a fraudulent check are in a precarious position. If the check has been deposited and cleared, the person may never be able to reclaim the money they were owed and paid by the check.

Related Searches

Promoted By Zergnet


You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!