I have an employee who fraudulently exchanged a disbursement check for a certified check made payable to a bogus payee. We have reported the fraud to the bank within thirty days. Does the bank have any liability? Do we have any protections?
The question of liability will depend on the facts of the scenario. If the bank made an error, or certified the check with an obviously altered payee, the bank should be liable. There can be no definite response because all the details do not seem to be present.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The question of liability will depend on the facts of the scenario. If the bank made an error, or certified the check with an obviously altered payee, the bank should be liable. There can be no definite response because all the details do not seem to be present.
