Types
What is a Forged Maker Signature?
unauthorized signing of the drawer’s signature on a check or draft. The branch will typically receive notification from the customer advising of lost/stolen checks
All documented identification and new account opening procedures should be closely followed to minimize the possibility of loss and ensure the establishment of a valid relationship
This is called?
Know Your Customer
Any forgery and/or fraud situations must be communicated to Compliance immediately upon initial identification. An investigation will begin to determine liability, level of prosecution, and possibility of recovery
Fraud Investigation
What is Forged Endorsement?
unauthorized signing of the payee’s signature on the back of a check or draft. The branch will typically be advised of a "without entry" claim received through Deposit Operations or a payee or maker of a check drawn on the Bank may come into the branch
a customer requests a change of address after new checks are ordered and received, you should be cautious. He or she may have used someone else’s legitimate address just to get the account open and receive the checks
Change of Address Requests
What are looking for in Check Kiting
Deposits and Withdrawals of like amounts posting on the same day, or within two days
Account has high daily balance, but low average balance
To-me-from-me: Signer on the deposited checks is the signer on the HTB account
Return deposit items and NSF’s are common
What is a Counterfeit Check?
fraudulently manufactured item drawn on a customer’s account that appears real but bears a forged makers signature. The branch will typically be presented with a counterfeit check at the teller window or receive notification from the customer advising of counterfeit items in their statement
A new account is a business contract between the Bank and the customer. A platform representative has no obligation to open a new account.
Know Your Rights
How to investigate New Account Fraud?
begin an investigation into account activities to determine if the new account has been opened with fraudulent intent and obtain any available information regarding the suspect.
What is Wire Fraud?
unauthorized withdrawal and fraudulent transfer of funds delivered via the wire transfer system to a person other than the true account holder or authorized signer, for the purpose of fraud. The branch will typically receive notification from the customer advising of wire transfer fraud.
Check all areas of a negotiable item and examine the writing for common indications of a forgery such as shaky writing, blotting, misspelled names or words, unnecessary or retouched strokes, awkward looking forms, and frequent changes in the angle of writing
is called?
Examine the Item
How to investigate Deposit of a Forged Endorsement
If the victim is in your branch, advise the payee of the check to complete affidavits at the bank that the item is drawn on. The forged check will then be returned to the Bank.
Attempt to locate the account used for the deposit immediately and assess for a possible hold on the specific dollar amount of the item being returned.
Contact the Compliance for direction regarding claim.
What is Internal Fraud? & 3 Common types?
Internal fraud is any kind of illegal activity perpetrated by an employee against an employer. Common types of internal fraud found in banking include:
*Cash Fraud: money missing from a cash drawer or vault
* Account fraud: money missing from customer accounts or accounts opened for the purpose of fraud
*Loan Fraud: fraudulent loans or improper draws on loans
If something about the customer or transactions makes you feel "funny", conduct further research! Hold the starter kit and check order until information can be verified. Call and verify the validity of any checks deposited, ask the customer for a bank reference and call ask for creative additional forms of ID like their vehicle registration or insurance card is called?
Trust Your Intuition
Customer is the victim?
Obtain a detailed account of the situation by asking Who, What, Where, When and How questions. Review account with customer to determine which transactions are legitimate and which are not.
2. Complete an Affidavit of Forgery or Fraud for each check, draft, unauthorized transaction or altered item as applicable and obtain customer signature.
3. If the item is a check, determine if it paid through in-clearing or at the teller window:
a. If the item cleared through proof, we may be able to return the item. Contact Deposit Operations to determine if any items may be returned.
b. If the transaction was processed in the branch, attempt to obtain a picture of the person who presented the forged item. See if the customer knows the person.
4. If the fraudulent transaction is an electronic item (Debit Card, unauthorized draft) complete the appropriate dispute forms and contact Deposit Operations to freeze the card (Debit Card Fraud Statement, ACH Unauthorized Affidavit or ATM Dispute).
5. If the fraudulent transaction is a wire transfer, contact Deposit Operations to attempt a recall of the transaction.
6. If fraud is from an ATM transaction originating from a stolen card, obtain a copy of the police report. If a report has not been filed refer customer to a local detective in your area.
7. Place a Lockout Flag 64 (positive ID required) on the account for check fraud only.
8. Instruct the customer that the claim will be reviewed and upon completion of the investigation they will be contacted. Never promise a reimbursement of funds.
9. Discuss with the customer whether a new account should be opened.