Beware of ‘check-washing’—a crook stole $310,000 from this couple and banks won’t help

Fraud can happen to anyone, even rich entrepreneurs. Steve, who asked his last name, could not be used so he could tell this story, shook to find someone stolen one of his checks, which is supposed to go to IRS. Monthly months later, Steve, whose firm helps lawyers serve legal documents, was still hooked for $ 310,000.

In early January 2024, Steve’s wife checked on their personal Wells Fargo: Bank account and was addressed to IRS for $ 310,000. This inspection was the estimated payment of Steve for the federal taxes of his first quarter that year. He took the checkbox in the SEATHER Area Seattle Post Office and the check was cleared on January 31, according to the FARGO Bank’s statement.

Until the next November, when his accountant contacted him, Steve realized that the IRS had never received the inspection. Then, December 18, the IRS asked Steve to provide a $ 310,000 check-in front and back copy. After his wife received a copy of the local well-branched branch Staples“

Staples or the one who went out of deceit was signed by the check back and would allocate it Jpmorgan chase Account check.

When asked why he didn’t realize any sooner that Someone Had Stolen The Check, Steve Said He Makes “More Than A Hundred” Payments Each Quarter Boweresses Across Different States Notice That The IRS Hadn’t Received The Check. He could have passed every payment, but it would be “exhaustive,” said Steve.

Very common fraud

Check fraud is a big business. In 2023, nearly 80%, or $ 21.1 billion, Global Check Check Fraud fraud, according to NASDAQ’s World Financial Crime ReportA number of fraud prevention was one that prompted President Donald Trump sign In March, the executive decree guides the Federal Government to stop checks on paper and disabled as of September 30 through safe electronic payments.

Christopher CafaroThe partner of the Legal Firms, in the practice of corporate investigations of “Pilsbury” Winthrop Shaw Pittman, said that such a test washing schemes are very popular. “Members of the society must be vigilant about reconsidering the financial accounts. If they see something suspicious, they must report it to the financial institution and the police, “Kafaron said.

This is exactly what Steve did it. On December 18, the day he learned about Chek’s fraud, Steve filed a lawsuit with Hels Fangro. A week later, Steve received a form from the bank that denied the lawsuit because it was too much time. Then he informed the falsifications to the Seattle Police, which said Stevi that he had been fraud that started on a crime. “I’m just shocked that [banks] Don’t have insurance for such a thing, or they do all the fraud that they don’t care about the consumer’s protection, “he said.

US banks are guided by the joint commercial code. The victims of check fraud under UCC have a year to file a claim, but banks can reduce much less. Buses like Wells Fargo, as a rule, give consumers 30 to 60 days to inform their checks that will begin the process of restoring funds.

Steve also stated the office of Currency Comptroller, which regulates and monitors national banks. Consumer Financial Protection Bureau, a state agency dedicated to the defense of the consumer in the financial market. And the Center for Complaints of Internet Crimes, Department of the FBI Department. She hasn’t heard anything from Ock or IC3. CFPB said to Steve that he could not do anything because the well didn’t do anything bad.

The entrepreneur is not coming back. “It simply came to our notice then. I just can’t believe that someone and age can steal $ 310,000, both Chase, and Hels’ va. They do not have checks and remnants, or nothing to protect us on the spot, “said Steve.

He has launched a legal action against the wells of the wells, but there is no solution yet. In a letter of February 11, the bank said that it sent a request to pursue $ 310,000. Told a persecution speaker Fortune Which bank has received a lawsuit from the wells from FARGO and looks at that?

Steve said that the case could go to arbitration where he could lose, and then he could be responsible for much more, including a fee for good fargo lawyers.

How to avoid?

Wells Fargo and pursue every offer to help prevent fraud. If the two banks may encourage consumers to use check-out alternatives, including online or digital payments. Chase advises its customers to use permanent ink and write, to fill the entire line when writing the employee. Wells Fargo suggests that consumers create account signals and immediately review their statements, including the front and back images of cash checks. “We never want anyone to be a victim of fraud or deceit,” said the Water Fargo Speaker.

Steve is not guilty of what he happened, said Habiberb’s Coffharon. “The sin is squarely falling on the individual who stole the inspection and used it for his own personal interest,” Kafaron said.

So far, Steve is an additional $ 310,000 he paid for the IRS with interest and penalty. But he and his wife have learned a lesson. “Don’t use checks for anything as long as you just don’t pay your baby or your dog or someone you really know and give you you.

This story was originally shown Fortune.com