Consumer complaint received 2026-04-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: SANTANDER HOLDINGS USA, INC.
State: NJ

Complaint narrative:
I am writing to formally escalate our dispute regarding a fraudulent check drawn on our business account and Santanders subsequent denial of our claim. On XX/XX/year>, a check from our business account ( XXXX XXXX XXXXXXXX XXXX XXXX was stolen, altered ( washed ), and deposited via ATM at a XXXX XXXXXXXX location in XXXXXXXX XXXX for {$7000.00}. The payee was fraudulently changed to an individual we do not know and have never conducted business with. We are located in XXXXXXXX XXXX, and do not issue checks of this amount or to recipients in that geographic area. According to our account records, this check cleared our Santander account on the same day ( XX/XX/year> ) or by the next business day. This raises serious concerns regarding the lack of fraud detection and verification procedures for what should have been considered a high-risk transaction. At no point were we contacted by Santander or XXXX XXXXXXXX to verify : The validity of the check The altered payee The unusually large, out-of-pattern transaction The out-of-state ATM deposit location Additionally, no hold or restriction appears to have been placed on the funds to allow for verification, which is particularly concerning given the circumstances. We did not discover this fraud until early XXXX, as one of our authorized signers was out of state ( XXXX ) and only identified the issue upon returning and reconciling our account statements. We reported the fraud immediately on XX/XX/year> through our local branch, which initiated a claim. On XX/XX/year>, Santander denied the claim, citing that it was not reported within XXXX days of the statement date. While we acknowledge the timing provision in the Business Deposit Account Agreement, we do not accept that this alone absolves Santander of responsibilityparticularly given the apparent failure of basic fraud prevention and verification procedures. To date, we have seen no meaningful progress, communication, or indication that a substantive investigation is being conducted into : How this check was processed and cleared so quickly What fraud detection systems were ( or were not ) triggered What verification steps were taken by Santander and/or XXXX XXXX Why no safeguards ( such as holds, alerts, or direct customer verification ) were implemented We are requesting the following immediately : A formal re-opening and escalation of this claim for full investigation A detailed explanation of the procedures followed in processing this transaction Documentation of Santanders fraud detection and check verification protocols applicable to this situation Direct contact with a fraud investigations specialist or escalation manager Clarification of any recovery efforts underway to retrieve the funds We have already begun the process of filing formal complaints with the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau , as we believe this situation involves significant procedural failures that exposed our business to preventable financial loss. We are not accepting the current outcome and expect this matter to be taken seriously, thoroughly investigated, and resolved appropriately.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation