Jump to content


Photo

PHBT...Who is on the hook for an altered check?


  • Please log in to reply
53 replies to this topic

#1 BFB

BFB

    Wind Whisperer

  • Patron
  • PipPipPipPip
  • 9408 posts
  • LocationWisconsin

Posted 09 September 2019 - 03:49 PM

So today a vendor contacts me and asks about a couple past due invoices. I look into it and see where we paid them, check number and that they were cashed/deposited. Vendor says..hmmmmm we did not receive. Go online and look at the bank records and see a snapshot of the check. Same numer, same amount, but someone changed who it was written to. We figure it was intercepted at the Milwaukee post office since that is the name and address of the imaginary person that cashed/deposited it. The check looks legit, but when they did my company name, they didn't capitalize the H in Handling. It was handling on the check.

 

Bank has their fraud team looking into it.

this is all I know at this time.

 

So...who's on the hook for the check amount? The bank? 


  • 0

#2 Dave

Dave

    Grammaraticus of Titty Money

  • Patron
  • PipPipPipPipPip
  • 29717 posts
  • LocationLugnar Island

Posted 09 September 2019 - 03:51 PM

I would imagine you need to pay your vendor and then hope that the bank reimburses you for the fraudulent checks
  • 0

#3 Dave

Dave

    Grammaraticus of Titty Money

  • Patron
  • PipPipPipPipPip
  • 29717 posts
  • LocationLugnar Island

Posted 09 September 2019 - 03:56 PM

Not exactly the same but on July 19 I dropped my 2 envelopes off at the outside box at the main PO in town. I remember it was nearly full, letters all the way to the top. These were my local sales tax and rental checks and they have to be postmarked by the 20th.
A month and a half later the city contacts me and said they never got it and I have to pay the amount plus interest. Today I got a note from the county about the same thing. I'm guessing someone grabbed the mail out of the box. The checks never cleared and it takes them 3 weeks or more to deposit them do it got past me. I hope they don't get cashed with someone else's name on them...
  • 0

#4 SugarTits

SugarTits

    Comptroller of Nothing

  • Patron
  • PipPipPipPipPip
  • 43429 posts

Posted 09 September 2019 - 03:56 PM

The last person to sign the check. I had to clear my credit from a $232 payroll check. The company went bankrupt and all final checks were worthless. I cashed my check at Winn Dixie and received the money. They went after me because the company was in bankrupt protection and I was the last to sign the check.

So if your vendor never received or endorsed the check, it is between you and the thief. The vendor is still due funds.

From my experience.
  • 0

#5 dondewey

dondewey

    Frequent Member

  • Members
  • PipPipPipPip
  • 1778 posts
  • LocationVA

Posted 09 September 2019 - 03:58 PM

I'm not totally following. Why would they write your name incorrectly? I though you were paying someone else and they changed that someone else's name?
  • 0

#6 BFB

BFB

    Wind Whisperer

  • Patron
  • PipPipPipPip
  • 9408 posts
  • LocationWisconsin

Posted 09 September 2019 - 04:03 PM

I have no doubt that I still need to pay my vendor. i guess I'm hoping the bank comes through on the other end.


  • 0

#7 ER Pemberton

ER Pemberton

    Comptroller of Forum Content

  • Moderators
  • PipPipPipPipPip
  • 33275 posts

Posted 09 September 2019 - 04:18 PM

One project I find myself doing for my customers is "positive pay".  When you do a run of checks, a file is sent to the bank with the correct check information (payee, amount, date, check number, etc.) and when someone tries to pass an altered check, it is verified against the data and not accepted (not sure if they're shot on sight or what) but it works beautifully.  



#8 Dave

Dave

    Grammaraticus of Titty Money

  • Patron
  • PipPipPipPipPip
  • 29717 posts
  • LocationLugnar Island

Posted 09 September 2019 - 04:52 PM

After reading it again, did they cash the real check or did they make a check modeled on yours?

If the latter I'd be telling my bank I expect my money replaced first thing in the morning.


  • 0

#9 LibraAle

LibraAle

    Comptroller of Nuns and Apostles

  • Members
  • PipPipPipPip
  • 1935 posts

Posted 09 September 2019 - 04:53 PM

I'm not totally following. Why would they write your name incorrectly? I though you were paying someone else and they changed that someone else's name?

+1


  • 0

#10 VolFan

VolFan

    Comptroller of teh spr0ts

  • Patron
  • PipPipPipPip
  • 7986 posts
  • LocationEast TN

Posted 09 September 2019 - 05:29 PM

Was this an edited photocopy of the original? 


I'm a tad lost also. You wouldn't think a bank would cash an altered check. If they did I'd say it's on them.


Edited by VolFan, 09 September 2019 - 05:30 PM.

  • 0

#11 Mynameisluka

Mynameisluka

    Comptroller of Brownies

  • Patron
  • PipPipPipPipPip
  • 22730 posts

Posted 09 September 2019 - 05:46 PM

Do you use your bank's positive pay feature?

I'm not totally following. Why would they write your name incorrectly? I though you were paying someone else and they changed that someone else's name?


It sounds like they washed the recipient's name off the check and replaced it with their own.
  • 0

#12 weep er

weep er

    Frequent Member

  • Patron
  • PipPipPipPip
  • 7772 posts

Posted 09 September 2019 - 06:33 PM

Laws can vary from state to state , but typically, the bank who cashed or deposited the fraudulent check is on the hook.



Do you use your bank's positive pay feature?

.

Oh feck positive pay! It’s such a pain in the ass.

Edited by weep er, 09 September 2019 - 06:33 PM.

  • 0

#13 BFB

BFB

    Wind Whisperer

  • Patron
  • PipPipPipPip
  • 9408 posts
  • LocationWisconsin

Posted 09 September 2019 - 06:47 PM

After reading it again, did they cash the real check or did they make a check modeled on yours?
If the latter I'd be telling my bank I expect my money replaced first thing in the morning.


It's the latter.

Or as also mentioned...it was washed.
  • 0

#14 BFB

BFB

    Wind Whisperer

  • Patron
  • PipPipPipPip
  • 9408 posts
  • LocationWisconsin

Posted 09 September 2019 - 06:52 PM

Laws can vary from state to state , but typically, the bank who cashed or deposited the fraudulent check is on the hook.



Oh feck positive pay! It’s such a pain in the ass.


The bank is now suggesting something that sounds like positive pay. It looks like it will add a lot of work during every check run.

Do you use your bank's positive pay feature?

It sounds like they washed the recipient's name off the check and replaced it with their own.


Also looks like some of our info was washed too. Probably accounts for the error in our business name.
  • 0

#15 weep er

weep er

    Frequent Member

  • Patron
  • PipPipPipPip
  • 7772 posts

Posted 09 September 2019 - 06:57 PM

The bank is now suggesting something that sounds like positive pay. It looks like it will add a lot of work during every check run.

Also looks like some of our info was washed too. Probably accounts for the error in our business name.


I used it thru PNC as a bookkeeper in 2013 / it was not very simple then. I suppose the interface could have improved in 6 years

The issue comes when you have an exception, which is typically not a true exception (in my experience.) You have to be sure to watch emails every morning for those or payments are sent back.

Maybe Luka has had better experience
  • 0

#16 Mynameisluka

Mynameisluka

    Comptroller of Brownies

  • Patron
  • PipPipPipPipPip
  • 22730 posts

Posted 09 September 2019 - 07:01 PM

The bank is now suggesting something that sounds like positive pay. It looks like it will add a lot of work during every check run.


I dont know which accounting software you use, but you can usually create a file pretty easily that you can import into the bank's positive pay system.

I used it thru PNC as a bookkeeper in 2013 / it was not very simple then. I suppose the interface could have improved in 6 years

The issue comes when you have an exception, which is typically not a true exception (in my experience.) You have to be sure to watch emails every morning for those or payments are sent back.

Maybe Luka has had better experience


It isn't too bad...we do about 500 checks each week, and it takes about 5 minutes to do positive pay. Different banks have different options for handling exceptions.
  • 0

#17 BFB

BFB

    Wind Whisperer

  • Patron
  • PipPipPipPip
  • 9408 posts
  • LocationWisconsin

Posted 09 September 2019 - 07:07 PM

I dont know which accounting software you use, but you can usually create a file pretty easily that you can import into the bank's positive pay system.

It isn't too bad...we do about 500 checks each week, and it takes about 5 minutes to do positive pay. Different banks have different options for handling exceptions.


QuickBooks Pro
  • 0

#18 Mynameisluka

Mynameisluka

    Comptroller of Brownies

  • Patron
  • PipPipPipPipPip
  • 22730 posts

Posted 09 September 2019 - 07:11 PM

QuickBooks Pro

If you have the qodbc driver, you can do it pretty easily with odbc in excel.

But, you need to get in touch with your bank to find put what the file needs to look like.

Edited by Mynameisluka, 09 September 2019 - 07:13 PM.

  • 0

#19 Mynameisluka

Mynameisluka

    Comptroller of Brownies

  • Patron
  • PipPipPipPipPip
  • 22730 posts

Posted 09 September 2019 - 07:17 PM

Info on odbc in quickbooks...if you aren't familiar, it is a fairly straightforward approach to querying the database directly from excel. You choose the tables, choose your fields, set your criteria, and it pulls straight in to excel.

https://quickbooks.i...-faqs/00/201350
  • 0

#20 the_stain

the_stain

    Phat O'Mic Chef Winner!

  • Patron
  • PipPipPipPipPipPip
  • 77409 posts

Posted 09 September 2019 - 07:28 PM

Solution

Never take checks
  • 0


0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users