Consumer complaint received 2026-03-10 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
This complaint concerns two materially altered business checks totaling {$14000.00} that were stolen from the mail, washed, and fraudulently deposited via mobile deposit into personal accounts unrelated to the intended vendor. These items were not properly payable under UCC 4-401. The fraud followed the exact same pattern as four other stolen checks from the same incident, which Chase reimbursed after submission of affidavits. However, these two checks the largest amounts remain unresolved without explanation. My company, XXXX. XXXX XXXX XXXX XXXX XXXX, reported this fraud to Chase on XX/XX/XXXX, after discovering that two checks mailed to a long-standing vendor had been stolen from the mail, altered ( check washed ), and deposited into accounts belonging to unrelated individuals. The checks involved are : Check # XXXX {$8000.00} Check # XXXX {$6500.00} Both checks were materially altered and deposited via mobile deposit into personal accounts. My business does not write checks to individuals except payroll, and none of my vendors deposit checks via mobile deposit. These transactions were clearly inconsistent with my companys normal payment practices and contained multiple indicators of alteration, including altered payee names and formatting irregularities. Importantly, four other checks stolen and altered in the same fraud incident were reimbursed by Chase after submission of affidavits, confirming the identical pattern of check washing fraud. However, these two checks remain unresolved without a clear explanation from the bank. Under the Uniform Commercial Code ( UCC 4-401 ), a bank may charge a customers account only for items that are properly payable. A check that has been materially altered is not properly payable, and banks must exercise ordinary care when processing items for payment. In this case, the bank failed to exercise ordinary care by honoring items with obvious material alterations and mismatched endorsements, and by allowing them to be deposited via mobile deposit into personal accounts inconsistent with the account holders payment history. Additionally, one of the fraudulent checks was deposited into a Chase account, meaning the bank had direct access to the receiving account and the ability to review the suspicious transaction internally. After months of communication, Chase requested signed affidavits, which I promptly submitted. On XX/XX/XXXX, Chase informed me that the affidavits were not on file despite prior submission, and I immediately resubmitted them that same day. Since then, I have sent multiple follow-up requests asking for confirmation of receipt and a timeline for resolution but have received no meaningful response. Because the vendor had not received payment due to these altered checks, my company was forced to reissue the funds, leaving our small business carrying the financial loss while the banks investigation remains unresolved. This situation raises serious concerns regarding whether the bank exercised ordinary care as required under UCC 4-103 before honoring these materially altered items. I am requesting that Chase : Reevaluate the claim under UCC 4-401 regarding altered items that were not properly payable. Provide documentation explaining how the bank determined that ordinary care was exercised before honoring these altered checks. Reimburse the full amount of {$14000.00} so that my company is not left responsible for losses caused by check washing fraud. By honoring materially altered checks that were not properly payable and inconsistent with my account history, the bank failed to exercise ordinary care as required under UCC 4-401 and 4-103. I would also appreciate a written explanation of the procedures used to determine that ordinary care was exercised before these materially altered items were honored.

Company response to consumer: Closed with explanation