Bank checking account hit by fraudster

[Dot57]

Has anyone experienced a fraudulent withdrawal from their bank checking
account that they weren’t able to resolve with the bank? My friend had 3
large withdrawals from his business checking account in late November. While 2 transactions ($4,000 and $11,000) from Wells Fargo were reversed by them, he cannot get anyone from his bank or from Square to help recover a $23,000 transaction on 11/30. The merchant is listed as Dotman AUT, which the bank suggested was a used car dealer in Columbus, Ohio. I wondered if anyone knows what your rights are in a situation like this and the best course of action for help? I’m very concerned with the increase in fraudulent activity that this could happen and there’s no recourse.

 

[COcheesehead]

What actions have they taken since then?
Dotman Autos appears to be a sham.

 

[statsman]

Too late now, but we maintain a relatively low checking account balance with NO overdraft protection from any savings account. Mainly because banks, even if they reverse the charges, can take a long time to correct.

 

[JBTX]

Banks can be very bureaucratic depending on the circumstances. One had put my account on fraud hold for a totally legit deposit and took escalation to external sources to get movement.

If you can’t resolve 2 options are:

1. File a complaint with the CFPB. Institutions are usually pretty eager to get off of their radar.

2. If it is a large bank, go to Elliot Advocacy and look for executive email contacts for the company. These work amazingly well and have had success several times from different companies and different industries.

 

[Koolau]

Hah! So much for "KNOW YOUR CUSTOMER" rules set by the Feds. Obviously, the institution DIDN'T know their customer very well.

 

[Sunset]

Too late now, but we maintain a relatively low checking account balance with NO overdraft protection from any savings account. Mainly because banks, even if they reverse the charges, can take a long time to correct.

+1

I also pay bills quickly, because I think to my self if I pay off a $2,000 bill, then if my money is stolen at least I won't have lost the money and still owe the $2,000.

Always a good idea to have alerts on the account for when $ goes out and check it at least once per month.

 

[Montecfo]

My company had this happen. There were 2-3 bogus checks. They reversed them after investigating. I think I heard they arrested the perp.

 

[f35phixer]

it's been happening in Southern Maryland. Most likely from Capitol Heights mail processing facility. Lots of occurrences!!! There are those that recommend using Uni-Balls to write checks, less chance of washing to happen...

 

[OldShooter]

... I’m very concerned with the increase in fraudulent activity that this could happen and there’s no recourse.

All of our serious money is at Schwab and I am very happy with their policy on fraud:

"Schwab will cover losses in any of your Schwab accounts due to unauthorized activity."
​

I would not do business with a financial institution that had a weaker policy.

Fido has a similar-looking policy but a little more complicated:

"Fidelity will reimburse you for losses from unauthorized activity in your Covered Accounts occurring through no fault of your own."
​

I have not investigated the implications of "covered" and "no fault of your own" because I don't have any accounts with them right now.

 

[HenryD]

IIRC business checking accounts don't have the same protections under the law as personal checking accounts. I remember Clark Howard recommending using a personal account even for business. Not sure if that's still the case. I should keep less in my business checking than I do.

 

[Walt34]

For $23k it would be worthwhile having the company's attorney (they DO have an attorney, don't they?) write a nastygram to the bank. That will usually get the attention of someone who can get the right things done and quickly.

 

[skyking1]

I set up a separate ACH account and keep very little in it, I have a three part process.
1)Check accounts and transfer the funds needed.
2) authorize the ACH
3) follow up and check accounts.

 

[MichaelB]

Has anyone experienced a fraudulent withdrawal from their bank checking
account that they weren’t able to resolve with the bank? My friend had 3
large withdrawals from his business checking account in late November. While 2 transactions ($4,000 and $11,000) from Wells Fargo were reversed by them, he cannot get anyone from his bank or from Square to help recover a $23,000 transaction on 11/30. The merchant is listed as Dotman AUT, which the bank suggested was a used car dealer in Columbus, Ohio. I wondered if anyone knows what your rights are in a situation like this and the best course of action for help? I’m very concerned with the increase in fraudulent activity that this could happen and there’s no recourse.

Regulations covering unauthorized financial transactions are much more comprehensive for retail consumers than businesses. This does not help your friend if it is a business account. Nonetheless, he should still take the same steps as if it were consumer fraud.

- File a police report
- File a report with the FBI
- File a report with the FTC
- Send a certified letter to the bank confirming the fraudulent transactions and asking for reimbursement. This needs to be done within 60 days of the date of the account statement.Include copies of the police and FBI filings.
- Close the bank account and open a new one.
- Inform the 3 major credit agencies of the theft
- File a complaint about Wells Fargo with the Office of the Comptroller of the Currency. This is the agency that regulates Wells Fargo. Include copies of the complaints filed with police, FBI, FTC, certified letter to Wells Fargo reporting the theft and any relevant correspondence with the bank.

 

[ls99]

Hah! So much for "KNOW YOUR CUSTOMER" rules set by the Feds. Obviously, the institution DIDN'T know their customer very well.

More like, rat out your customer. To the feds.

 

[Koolau]

I set up a separate ACH account and keep very little in it, I have a three part process.
1)Check accounts and transfer the funds needed.
2) authorize the ACH
3) follow up and check accounts.

You've lived by a check-list in the air - good to have one on the ground as well.

 

[Koolau]

More like, rat out your customer. To the feds.

Heh, heh, thanks for saying it out loud. I was being too subtle.

 

[ExFlyBoy5]

I would be taking this up with Square in addition to the bank. I would guess it wasn't a paper check, but done though a "Square" account that Dotman Autos uses.

Also, Dotman Autos in Columbus OH does exist (or did in Jan of 2022). You can Google the information. I would contact them as well.

Also, a call to the state(s) consumer protection folks would be in order.

 

[UpQuark]

....
Fido has a similar-looking policy but a little more complicated:

"Fidelity will reimburse you for losses from unauthorized activity in your Covered Accounts occurring through no fault of your own."
​

I have not investigated the implications of "covered" and "no fault of your own" because I don't have any accounts with them right now.

Oh gosh I better research that, I hadn't realized until I tried it when I bought I Bonds last week, that a Direct Debit could be done from my core position in my investment brokerage account. But I entered Fidelity's routing number and my account number (with the prefix described on the Fidelity site) and by golly Treasury Direct had no problem pulling the money. Convenient but kind of scary that it is doable.

 

[Koolau]

I would be taking this up with Square in addition to the bank. I would guess it wasn't a paper check, but done though a "Square" account that Dotman Autos uses.

Also, Dotman Autos in Columbus OH does exist (or did in Jan of 2022). You can Google the information. I would contact them as well.

Also, a call to the state(s) consumer protection folks would be in order.

Yeah, I'm guessing the dealer has some kind of picture (maybe just a copy of DL) of the purchaser. A call to the dealer DOES seem in order. Best luck.

 

[Dot57]

Thank you all for your input! My friend decided to call the local tv station
who provides a service for consumers who aren’t treated fairly. One email
message from the tv station to the bank is all it took and magically my friend
received a call from the bank AND the $23k was deposited back in his account t
within an hour. It’s a shame he spent 6 weeks in anguish but all is good now.
This forum is so helpful for gathering input! Thanks again for all the feedback!

 

[ExFlyBoy5]

Thank you all for your input! My friend decided to call the local tv station
who provides a service for consumers who aren’t treated fairly. One email
message from the tv station to the bank is all it took and magically my friend
received a call from the bank AND the $23k was deposited back in his account t
within an hour. It’s a shame he spent 6 weeks in anguish but all is good now.
This forum is so helpful for gathering input! Thanks again for all the feedback!

That's awesome to hear. Too bad it took so much work to get it fixed.

 

[latexman]

Dot57, this thread prompted me to remove overdraft transfer services on my checking account from my savings account at my CU. To help me not overdraft, which I don't think I've ever done, I activated a low balance text alert for my checking account. Thank you.

 

[Koolau]

Thank you all for your input! My friend decided to call the local tv station
who provides a service for consumers who aren’t treated fairly. One email
message from the tv station to the bank is all it took and magically my friend
received a call from the bank AND the $23k was deposited back in his account t
within an hour. It’s a shame he spent 6 weeks in anguish but all is good now.
This forum is so helpful for gathering input! Thanks again for all the feedback!

Fantastic! So happy to hear of this resolution. Thanks for letting us know.

 

[Badger]

Thank you all for your input! My friend decided to call the local tv station
who provides a service for consumers who aren’t treated fairly. One email
message from the tv station to the bank is all it took and magically my friend
received a call from the bank AND the $23k was deposited back in his account t
within an hour. It’s a shame he spent 6 weeks in anguish but all is good now.
This forum is so helpful for gathering input! Thanks again for all the feedback!

WOO HOO!

Cheers!