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Home >> Scams/Fraud >> Identity Theft
Loan Fraud Perpetrated by Bank Officer
A bank manager decided not to upgrade an equity line for which I was prequalified for much more than a year ago, but then offered to point me to some business associates of hers that could help me. Now I find that she has given all my information to this third unaffliated party of the bank, that then forged my name twenty-five times on truth and lending documents, good faith estimates and other federal documents. She uses a verification of deposit form with my loan number to defraud $15,000 dollars in my account that does not exist, just to help pass the fraud and forged loan through its process. Is this bank liable for her actions as this is breaking not only the banks policy but also colluding with fraud as a officer of the bank?
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 Whether the bank has any liability is for a court to decide. If there is a bona fide fraud, it should be reported. In some cases a person may report identity theft to the police and in some cases just to the bank. In the latter case, the bank could make the customer whole, correct any credit reporting errors, and handle the legal issues with the lender as the bank will have now suffered the loss.
Banks have controls in place that may have failed. The lender is acting on her own when she commits offenses such as this, manipulating the system and the controls.
Published on BankingQuestions.com 10/30/08
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