Last week, the Galveston Daily News reported on IBAT’s efforts to shine a light on the nation’s largest banks to adequately prevent and respond to check fraud. IBAT recently sent a letter to members of the House Financial Services Committee and the Senate Banking Committee, drawing attention to the spate of check fraud and the role that big banks are playing.
As reported in the article, representatives from JPMorgan Chase & Co. and Wells Fargo & Company referred the reporters inquiries to the American Bankers Association (ABA).
“Check fraud is a crime that hurts banks of all sizes and, as an industry, we need to stay focused on fighting back against the real bad actors in this story — the fraudsters taking advantage of bank customers,” said Sarah Grano, a spokeswoman for the American Bankers Association.
“It’s sad that the nation’s largest banks can’t speak for themselves as they enable fraudsters with weak controls, all while stiffing IBAT members for reimbursement on fraudulent returned items,” said IBAT President and CEO Christopher Williston.
“It’s even more disappointing that the ABA deflects blame from its largest members, enabling fraud at the expense of its smallest,” Williston added.
IBAT will continue to press this issue in the months ahead. We encourage you to document the issues your bank is dealing with as it seeks to receive payment from the big banks for returned items.
