Question for Bankers

Don D · July 2003

Hesitate to post this personal question, but maybe we can turn it into a business related question, since it could actually happen with any of our checks written to employees. My daughter in grad school has been substitute teaching. She went to pick up her check today and was told it had already been cashed. She was shown a copy of the check front and back with somebody's signature and where that person had even entered her social security number. How could that happen. She teaches in MS and the check wound up being cashed in Ohio somehow. I told her to at least go to the highway patrol and get her social taken off her drivers license and another number substituted. I think somebody at the place that issued the check is the thief, or is it the post office, or is there another option. Can this happen easily with any check we issue to an employee? Has she any recourse? Who is liable for the fraud?

Sue · July 2003

I think since the signature was false the institution that cashed the check will eventually lose out. Her employer should reissue the check and notify their bank that the check was falsly cashed. The bank should pursue it with the other institutions.

Trinity · July 2003

Sue is correct. Don, this is a type of ID Theft that is fairly common in our industry as a matter of fact. Was is another financial institution that cashed the check for the thief in Ohio? Or was it a check-cashing store or something? Reason I am asking is that most institutions do not cash checks for non-members, unless they charge a fee and even then they require an ID of some sort to match the signature to. If this check was cashed at a bank or CU they will be liable for the funds and the school district will dispute the check and reissue another one for your daughter. If it WAS a financial institution, for your daughter's protection I would call the place and see how the check was cashed. It could be that this thief has more than just your daughter's SS number, they could also have license info or more to make an ID with her information and their picture. In addition, many institutions have cameras which may have recorded the transaction.

Finally, as a precaution against this happening again, your daughter needs to make calls to 4 places:

Social Security Administration Office -Alert them that her SS number has been used in a fraudulant case and they will put an alert on it so that they are alerted whenever it is used to open new accounts, etc.

Call the 3 Credit Reporting Centers (Experian, Equifax, and TransUnion)-Their numbers are listed in the directory and have them put a fraud alert on her credit report so they will call her to verify any new accounts that are opened using her SS and other personal information.

I would also reccommend she double check with her financial institution to let them know she has been a victom of ID Theft and not to release ANY account info, even if the caller has the SS number, unless they know a password, which she can give them. Many banks and CU use this as a backup to guard against pretext callers.

Let me know if I can give you any more help!

cruiser · July 2003

The institution that cashed the check will lose out. I would think that the people that released the check should also be responsible. Can anybody pick up anybodys check without verifying ID?

cthr · July 2003

Don,

Trinity was right on the money. We are a CU and we don't cash checks for non-members unless it is an on-us check. Even then we require a picture ID. For members we will cash checks only with positive ID and they must know their member number.

I would have your daughter call the Risk Management department at the institution that cashed the check and tell them what happened. They will investitgate. Also, your daughter's employer should call them as well. They should issue a new check to your daughter. If her check was mailed, she needs to contact the Post Office as well and let them know.

Good luck and let us know how she makes out.

Don D · July 2003

Upon further research last night, we learn: The check was mailed to her apartment address. She says the mailman occasionally leaves the large swinging door open on the community box and the mail is accessible to anybody walking up to the structure. The check was cashed at a local grocery store but wound up in Ohio in a banking transaction of some sort. The check had an attached stub which did contain her social security number. We think either the check never was mailed and it was an inside scam at the school system, or the check was stolen out of the mailbox. Then somebody needed only to go to the grocery store, purchase an item and get the three party check cashed. Apparently they just ask for signature and social on the check and don't bother to verify with photo ID, which they should have. Her name is Scottie (believe it or not for a female) and I bet the person who did the deed was actually a boy. The school says they will reissue but this is a large hassle for a young girl and an old dad. I do feel strongly that we should encourage our employees to guard their social security number and drivers' license numbers and NOT let them be the same for obvious reasons. In many states, like mine, the state automatically assigns your social to your DL unless you protest. DO IT. She paid $10 to change it. But, if the verification process at stores is weak, it does not matter what nine digits you give them apparently.

cthr · July 2003

Don, I would still have her call the credit bureaus-I have those numbers if you need and SSA. Those nine numbers that someone stole hold her whole identity. It will take some amount of time and effort, but it is well worth it to protect her credit.

sonny · July 2003

[font size="1" color="#FF0000"]LAST EDITED ON 07-02-03 AT 07:42AM (CST)[/font][p]I am sure she has already done this but I would also raise hell with the local post office for even occasionally leaving the door open and or unattended.

Always Learning in OR · July 2003

[font size="1" color="#FF0000"]LAST EDITED ON 07-02-03 AT 09:16AM (CST)[/font][p]Hey Don,

Just want to add my voice to the fray. Your best case scenario is that this stopped with the one item. We'll all have our fingers crossed for that case. The worry is that folks can do a whole lot of damage with far less than the information this person has: name, address, social security number, and maybe even other mail.

In Oregon the DMV will issue a driver's license with a couple of pieces of mail and verifiable information (like name and social security number). That means that within a matter of a day this person could have accounts opened across town, could commit a huge amount of fraud and never be seen or heard from again.

Add to that a very simple address change and you now have the virtually unlimited ability to apply for credit cards. Bear in mind that your daughter would not be aware of any of this unless she requests her credit report quite frequently and reviews it with a fine tooth comb.

Most of the credit reporting agencies provide a credit watch service and at this point I would highly recommend that your daughter subscribe (no I don't work for a credit reporting agency). Not only do they provide you with your credit report regularly, but they also send you a notice any time there is an inquiry on your credit. It's a great way to spot this activity before it gets too far out of hand.

I'm so sorry that you've had this experience. The average expense the victim suffers in the case of full blown identity theft is $1000 and it can start with something as simple as this if you don't nip it in the bud.

In case you're not really upset yet, the chances of prosecution for identity theft is slim to nil given the state of things these days, the losses just aren't consider serious enough until you get into the $25K, $50K or even $100K range.

Best of luck, a little vigilance can go a long, long, way.

blw · July 2003

[font size="1" color="#FF0000"]LAST EDITED ON 07-02-03 AT 10:59AM (CST)[/font][p]I feel for you. We have had three employees suffer from some form of identity theft. Earlier this year we had a break-in and employee files were aparently accessed. I issued a memo to all staff witht the credit bureau #'s. In addition, when you place a fraud alert on your account with them, they will send you a complimentary copy of your credit report. They have reciprocal agreements and you should only have to call one and they will contact the other. It is simple to do - a totally automated call. Here are the numbers:

Credit Agency Place Fraud Alert

Equifax 1-800-525-6285
Experian 1-888-397-3742
Trans Union 1-800-680-7289

Good Luck! Barbara

HRsage · July 2003

I have a relative that works for our local police dept and he says the majority of his cases involve some type of identity theft. Many times it involves thieves trolling the neighborhoods around the first and fifteenth of each month and opening up mailboxes and stealing the credit card bills and paychecks. It's kind of crazy. All the suggestions that have already been posted are right on and that's what I'd be doing if it happened to me. Also might want to look into changing the mailbox to one that needs to be unlocked to get the mail. Of course it still could have been something at the school, but my money is on the mailbox. I hope it all works out for your daughter.

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