Consumer complaint received 2025-08-28 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TX

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am submitting this complaint regarding Bank of Americas failure to protect my account from a fraudulent check withdrawal, their improper denial of my claim, and the resulting financial and tax consequences. 

Background In XXXX, I issued a check ( No. XXXX ) payable to the Internal Revenue Service ( IRS ) in the amount of {$26000.00} to cover my tax obligation. 
That check was never received by the IRS. Instead, a fraudulent check in the exact same amount was processed and cleared against my Bank of America account. 
The fraudulent item diverted funds away from the IRS and caused the IRS to notify me that my 2019 tax return was never filed. As a result, my current-year return is being withheld. 

XXXX of XXXX I regularly monitored my bank account and noticed the exact withdrawal amount of {$26000.00}, which initially appeared valid. 
Upon closer review of the monthly bank statement, I discovered that the funds had been withdrawn using a fraudulent paper check rather than the legitimate IRS check I issued. 
I immediately filed a fraud claim with Bank of America ( Claim Reference : XXXX ). 

Banks XXXX Bank of America denied the claim, citing a XXXX calendar window for reporting fraudulent transactions. 
This denial is improper, as the transaction was clearly unauthorized and materially different from the genuine IRS check I wrote. 
The bank failed to provide any evidence of who collected the funds, what fraud-prevention mechanisms were in place, or why its systems allowed such a large fraudulent withdrawal to clear.

Legal and Regulatory Basis UCC 3-401, 3-403, and 4-401 provide that a bank may only charge a customers account for items that are properly payable and authorized. The fraudulent check was not authorized.

UCC 4-406 ( f ) prevents a bank from shifting liability to the customer if the bank itself failed to exercise ordinary care in paying the item. 
Guidance from the XXXX XXXX XXXX XXXX XXXX ( XXXX ) and the Consumer Financial Protection Bureau ( CFPB ) requires banks to maintain strong fraud monitoring and detection systems. A fraudulent item that mirrors the amount of a known IRS payment, but differs in payee or check image details, should have triggered review.

Request for CFPB Action I respectfully request that the CFPB investigate Bank of Americas handling of this fraudulent transaction and its denial of my claim. Specifically : 1. Why did the b
ank allow a fraudulent paper check to clear for such a significant amount?

2. What fraud-prevention and verification measures were in place at the time?

3. Why has the bank failed to provide documentation of the fraudulent item and who collected the funds?

4. Why did the bank deny my claim on procedural grounds despite clear evidence of fraud?

This situation has left me with both financial harm and ongoing issues with the IRS. I seek CFPBs assistance in compelling Bank of America to accept responsibility, reimburse the withdrawn funds, and provide appropriate documentation of its actions.

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, TX XXXX XXXX XXXX XXXX

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