Consumer complaint received 2025-03-08 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NV

Complaint narrative:
Issue : Mishandling of a Fraudulently Cashed Settlement Check by XXXXXXXX XXXX Description of the Problem : On XX/XX/XXXX, XXXX XXXX issued a settlement check in the amount of {$25000.00} payable to me, which was mailed to my attorneys office at XXXX XXXX XXXX. However, the check was intercepted and fraudulently cashed at XXXXXXXX XXXX on XX/XX/XXXX, without my authorization. 

My attorney 's office immediately reported the fraud to XXXX upon discovering it on XX/XX/XXXX. Despite this, XXXXXXXX XXXX  has failed to resolve the fraudulent transaction in a timely manner. Their fraud department has not provided any meaningful updates, nor have they taken appropriate action to recover or reissue the stolen funds. XXXX claims they are required to submit fraud claim through their bank, which is Bank of America. 

Key Concerns Regarding XXXX XXXX Handling of the Fraud Investigation : Failure to Properly Verify Endorsement : XXXXXXXX XXXX accepted and processed a fraudulent check with a forged signature, despite industry standards requiring proper verification. 
Delay in Fraud Investigation : Although XXXX has confirmed the fraud, XXXXXXXX XXXX has failed to take timely action to resolve the case. 
Lack of Transparency : XXXXXXXX XXXX has not provided me with a clear timeline or resolution plan. 
Ongoing Financial Hardship : Due to XXXXXXXX XXXX inaction, I have suffered severe financial distress, as these settlement funds were intended to cover essential living expenses. 
What I Am Requesting : I am requesting that XXXXXXXX XXXX immediately take the following corrective actions : Provide a full status update on the fraud claim and what steps have been taken. 
Reimburse the full amount of the fraudulently cashed check or work with XXXX to facilitate a reissuance. Explain why proper fraud detection protocols were not followed when the check was cashed. XXXXXXXX XXXX mishandling of this fraud case has caused significant harm, and I urge the CFPB to investigate their practices regarding fraudulent check deposits. 


Key Concerns Regarding XXXX Handling of the Fraud Investigation : Failure to Prevent Fraudulent Check Cashing : XXXX did not put adequate security measures in place to ensure the check was cashed by the rightful payee. 

Delays in Fraud Investigation : Despite my repeated requests, XXXX has stated the investigation could take up to 90 days, which is an unreasonable delay given the financial hardship this has caused. 

Failure to Expedite Replacement Check Issuance : Even though XXXX acknowledges that fraud occurred, they have refused to issue a replacement check while the investigation is ongoing. 

Lack of Transparency and Customer Support : XXXX  customer service representatives have provided conflicting information, and I have been unable to get a clear timeline for resolution. 

What I Am Requesting : I am requesting that XXXX immediately take the following corrective actions : Provide a full status update on the fraud claim and what steps have been taken. Immediately reissue the settlement check, given that the fraud was confirmed. Implement better fraud prevention measures to prevent future occurrences. 

XXXX mishandling of this fraud case has caused significant harm, and I urge the CFPB to investigate their practices regarding fraudulent check claims. 

Key Concerns Regarding Bank of Americas Handling of the Fraud Investigation : Failure to Take Immediate Action : Upon being notified of the fraud through XXXX, Bank of America did not promptly initiate corrective measures, such as attempting to recover funds from XXXXXXXX XXXX. 

Delays in Fraud Investigation : Despite multiple requests, Bank of America has provided no definitive timeline for resolving the issue, leaving me without access to my rightful settlement funds. 

Failure to Communicate Status Updates : I have received no updates from Bank of America regarding their progress in recovering my stolen funds, forcing me to follow up repeatedly. 

Unclear Accountability Measures : Neither Bank of America nor XXXXXXXX XXXX has provided transparency regarding their fraud investigation process, leaving me in financial limbo. 

What I Am Requesting : I am requesting that Bank of America immediately take the following corrective actions : Provide a full status update on the fraud claim and what steps have been taken. 
Work with XXXX and XXXXXXXX XXXX to expedite the recovery of funds and issue a replacement check. 
Improve fraud detection and prevention measures to prevent similar fraudulent transactions in the future. 

Bank of Americas mishandling of this fraud case has caused significant harm, and I urge the CFPB to investigate their practices regarding fraudulent check claims and financial fraud accountability.

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