Bank Fraud

Bank Accounts and Fraudulent Withdrawals

Becoming the victim of a fraudulent bank account or withdrawal because someone stole your identity can be very easy, especially if you do not keep track of your bank account statements.

Different actions are required for different bank related frauds, and not all banks handle frauds in the same way.  Banks that are under the Electronic Transfer Fund (ETF) Code are dictated in how they must handle your complaint of identity theft and fraud.

The legal actions that must be made vary depending on what type of fraud you've experienced.  If someone has made a fraudulent withdrawal electronically, then the Federal law applies to that scenario, but if the fraudulent withdrawal was done on paper, then that falls under the State law.

Even though a transaction may appear as an electronic transfer, it may be a paper transfer in actuality.  Be sure to check with the financial provider involved to know for sure.

Fraudulent New Accounts

Fraudulent accounts occur when someone has gotten your personal information and used it to create an account under your name.  This often results in you having difficulty opening a new checking account or having your checks bounce.  Take these following steps to secure your accounts once again.

1. Contact the fraud departments of the three major credit bureaus: Equifax, Experian, and Trans Union.

2. Have a security alert placed on your consumer report by contacting Chex Systems Inc.

3. Close any accounts related in the dispute, stop any outstanding checks, and change your ATM card and PIN.
 
5. File a police report and make sure to get a copy for your own personal records.

6. File a complaint with the Federal Trade Commission (FTC).

Fraud Electronic Withdrawals

If you’ve experienced fraud that involved your ATM or debit card, then the Electronic Fund Transfer Act will protect your transactions.  You are given 60 days to report any fraudulent acts after the date that you received your statement.

You must report your lost or stolen ATM or debit card immediately because the amount you can be held responsible for depends on how fast it is reported.  To ensure the best protection, it is recommended that you contact your financial institution and write them a certified letter and request a return receipt.  Keep all documents related to the fraud in your personal records in case they are needed in the future.

Generally, the institution that received your letter has 10 days to investigate your claims.  If they find nothing, the institution may send you a written letter with an explanation and could take the money back.

Fraud Checks and Other "Paper" Transactions

As soon as you realize that your checks or other paper transactions are being stolen, you must follow these steps:

1. Immediately put a hold on those checks and close out the related accounts.  

2. Request that your bank notify their check verification service which will then notify retailers not to accept any of those checks.  

3. You can also contact these services directly through TeleCheck or Certegy.

4. If your checks aren't being accepted, ask the business to give you their check verification service's number so you can find out what means the thief is using to block your checks.  Then take action accordingly.

5. Finally, dispute any bad checks that you acquired to be able to prevent yourself from getting bad credit and fined.