As with ATM cards, you're not responsible for charges made after you report the card lost or stolen. The stored-value card has emerged in recent years as another way to purchase items. These cards are purchased with cash and have a fixed value that gets reduced as purchases are made at merchants that accept the card. If a stored-value card is lost or stolen, it's like losing cash, and no federal law protects you. While no federal law limits your losses if someone steals your checks and forges your signature, you do have protections under state law.
Most states hold the bank responsible for losses from a forged check.
However, most states also require the customer to take reasonable care of his or her account. You may be held liable for the forgery if you don't notify the bank in a timely manner that a check was lost or stolen, or if you don't monitor your account statements and promptly report an unauthorized transaction. Pay attention to your accounts. Contact your state's consumer protection office to learn more about your rights. Many banks also purchase a form of insurance called a banker's blanket bond that may protect them from robbery, burglary, embezzlement and other causes of disappearing funds.