Helping Ms. Star Recover from Bank Fraud
I sat beside a client we’ll call Ms. Star at her bank’s local branch, as a bank associate explained, “We suspect there has been fraudulent activity associated with your accounts.”
In the digital age, online and mobile banking makes managing finances convenient and effortless. Yet as technology evolves, many senior citizens find the changes increasingly difficult to navigate.
They are left feeling overwhelmed and unable to understand the technology, which increases the risk that they will fall victim to. Add in age-related cognitive decline, which can impair judgment and decision making-skills, making it easier for fraudsters to gain access to personal information and financial data.
Unfortunately, this happened to Ms. Star, and she was completely unaware of it until the bank saw signs of fraud.
Investigating the Financial Fraud
Gaining online access to Ms. Star’s bank account was the most important step to recovering money lost from unauthorized and fraudulent activity.
Online access enabled Ms. Star, with our help, to evaluate the extent of the fraud.
We found that Ms. Star’s account was linked to an email address that did not belong to her, and the extent of the fraud was substantial:
Fraudulent checks and electronic payments issued exceeded $50,000
Over $20,000 of counterfeit paper checks
$30,000 of electronic payments
Our investigation showed that the fraudulent activity started months before the bank froze Ms. Star’s accounts.
We found counterfeit paper checks, mirroring the appearance of legitimate checks, that were typed instead of hand-written. The counterfeit checks indicated “Customer Authorization Obtained” in the memo line and/or “SIGNATURE NOT REQUIRED” in the signature line.
Many of the counterfeit checks shared the same check number, payee name, and payment amount.
We also uncovered unauthorized payments issued electronically were used to cover the cost of other people’s mortgages and credit card bills.
All of this prompted us to contact the police, as we started an effort to recover Ms. Star’s money.
Recovering from Financial Fraud
Everyday Money Management worked closely and diligently with the bank to identify each fraudulent payment. That required us to provide checks and account numbers, names of payees, and dates.
In the end, we were able to recover 100% of the unauthorized and fraudulent funds issued through electronic payment, which totaled $40,058.91.
Unfortunately, we were unable to recover all of the funds issued through counterfeit checks. Financial institutions generally allow 30 days from the statement date to notify the bank of an unauthorized signature or unauthorized alteration on a check.
The bank generously allowed us to exceed the 30-day provision for many of the counterfeit checks, but since the fraud had been going on for some time, we could not recover 100% of the funds.
A few weeks ago, Ms. Star received a phone call from a financial crimes investigator in another state. This investigator indicated a potential fraudster had Ms. Star’s name, address, social security number, and bank account information in his possession.
After contacting the local police department to confirm this investigator was legitimate, we found that they were looking to press charges and we are helping with that effort.
It’s not clear if this is the same fraudster that caused the original damage, so we are concerned about who might have access to Ms. Star’s personal and financial information. However, we at Everyday Money Management are actively monitoring Ms. Star’s new bank accounts, so she can feel assured of her financial well-being.
How a Daily Money Manager Guards Again Fraud
Unfortunately, Ms. Star’s story is not uncommon.
Many seniors struggle to keep up with their mail and balance their accounts. Add in the confusion around online access and many seniors end up like Ms. Star with unmonitored accounts.
A daily money manager helps seniors avoid fraud by regularly checking account activity and ensuring all charges are legitimate. Any irregular activity is spotted quickly, which makes it easier to recover funds while preventing additional fraudulent activity.
If you feel overwhelmed managing your daily finances or have been the victim of fraud and would like the help of a daily money manager, reach out to us.