Consumer complaint received 2023-07-22
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Deposits and withdrawals
Company: ATLANTIC UNION BANKSHARES CORPORATION (VA)

CHECK FRAUD - ALTERED CHECKS ATLANTIC UNION BANK As requested, below is a narrative of the timeline of events, the steps I took to report and reclaim the stolen funds and a few odd things that occurred along the way. 

Both were checks written to vendors. Both were placed in our mailbox for pickup on XX/XX/XXXX. 

I discovered the fraud on Wednesday, XX/XX/XXXX, when I logged into our account ( XXXX XXXX XXXX XXXX XXXX XXXX ) to look up some transactions for our tax return. I knew that the balance of the account should be around {$52000.00} and was dumbfounded that it was listed as {$7700.00} ( approximately ). It only took a minute to find the two transactions that had been altered.I looked at the pictures of both checks and saw that the paid-to information had been changed. The check numbers remained the same. The amount on one check ( XXXX ) remained the same. The amount of the second check ( XXXX ) was increased by {$10000.00}. Total amount is {$43000.00}. The checks cleared on XX/XX/XXXX and XX/XX/XXXX. 

I called the Fraud Line listed on the website and was told on three attempts that the number could not be reached as dialed ( I was in XXXX ). I was able to finally get through to someone by going through the call center and told her everything. She works in the XXXX XXXX office and was very helpful. She even call the next day ( Thursday, XX/XX/XXXX ) to follow up and make sure I was doing everything I had to do. 

In the meantime I had downloaded the images of the cleared, altered checks and then printed out the checks I originally produced on blank paper to compare fonts, etc. ( These are included in the attachments that I have provided. ) It's easy to see that the fonts of the altered information are different from the other fonts used ( from the original check ). The signature is mine. Other details from the check stock that we use were washed or deleted. 

I called the Sheriff 's Office and an officer was dispatched to take my report. I picked up a hard copy on Friday, XX/XX/XXXX, and then went to the XXXX XXXX to meet with XXXX XXXX ( Branch Manager ) to sign the affidavit. Late that afternoon I received a message from him on my phone that the fraud team was changing the description of the fraud from altered checks to counterfeit, and that a revised affidavit was being created that I needed to sign. Since it was after business hours, I went on Monday XX/XX/XXXX to sign the new one. I was not given a copy of that revised affidavit or a clear explanation for the change at that time. 

On Tuesday, XX/XX/XXXX, XXXX XXXX, also an Atlantic Union Bank employee, forwarded me an email from their fraud department with an explanation of why the claim description had been changed. It is included in my attachments ( filename : mail - XXXX Business Check Fraud XXXX XXXX XXXX XXXX, XXXX XXXX - XXXX ). I found it interesting that they noted that what they were calling " counterfeit '' checks were printed on heavier stock. When I later spoke to one member of the fraud team I questioned whether he had the actual checks that had cleared, and he said he did not, because the transaction had been completed digitally. He had no answer for me of how they made the determination that the stock was heavier. 

On that same day, XXXX called me to inform me that the bank was denying my claim. The reason is copied below from an email forwarded to me by XXXX. 

**************************** Good morning, My fraud teams response was : Based on AUB Liability shift which went into effect XX/XX/XXXX, XXXX is denying the customers claim due to claim was reported outside of reporting time frame. 

- Recovery efforts are underway Hold Harmless were filed with the XXXX  XXXX XXXX XXXX on XX/XX/XXXX. If successful, recovered funds will be provided to customer at that time. 

Thank you. 

**************************** Apparently there was a letter mailed to all business checking customers in XXXX of XXXX explaining that any customers that didn't switch their accounts to the new Positive Pay Business checking, then any fraudulent activity needed to be reported with XXXX business hours of occurrence, or the bank was not liable to honor any fraud claims. My response to this is as follows. 1 ) I am not disputing that said letter was not mailed. I am disputing their assumption that I received it ( which I did not ) and that there was not any vehicle put in place to ensure that the policy was actually received and understood by all customers. No follow up email. No follow up letter. 2 ) The check transaction took place on the Friday afternoon before the XXXX of XXXX holiday weekend. I have been told that the bank was open for half a day on XX/XX/XXXX. You can take it from there. It's not like I took 5, 10 or 30 days to report it. 3 ) One might deduce from the implementation of such a severe and unrealistic policy, is that the bank created a way to wash themselves clean of any liability or protection of their customers. What if I had been on vacation? Or in the hospital? Life does happen... 

A personal friend of mine, who was a XXXX XXXX XXXX XXXX XXXX XXXXXXXX and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Atlantic Union Bank, reached out to XXXX XXXX, the President of the bank, to see if a better resolution could be reached. To date, he has not responded. 

I did speak to a member of the fraud team last week and told him that I dispute their claim that the checks are counterfeit. In subsequent research, I found a legal article that explains why a bank might want that to be the case. I have included a PDF of that conclusion in my attachments. Filename : " Back with a Vengeance : The Challenges of Check Fraud '' - XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX We have moved our business account to another bank and hold on to a dim hope that we might recover those funds. For a small business ( husband and wife ) such as ours, this is a huge loss.