🚨 Alert to My Friends, Family, and Community: A Cautionary Tale of Check Fraud

🚨 Alert to My Friends, Family, and Community: A Cautionary Tale of Check Fraud

Last Wednesday, a startling discovery shook my trust in financial security. My wife and I, always diligent with our finances, were baffled to receive a cancellation notice from our insurance provider, Commerce/Mapfre, citing missed payments. Confusion turned to concern when our meticulous records contradicted this claim.

Our journey for answers led us to our insurance broker, Byam Bros-Mahoney Insurance in Lowell. Upon examining our bank records, a chilling reality surfaced: one of our November checks, intended for Commerce, bore a stamp unfamiliar to their regular processing. The realization hit - we were victims of check fraud.

How could just anyone cash a check not made out to them?

The Lowell Five Bank (very supportive and knowledgeable), where we bank, immediately identified Eastern Bank as the institution where the fraudulent transaction occurred. But the response from Eastern Bank was disheartening. Their manager claimed an inability to trace who cashed the check online, leaving us with more questions than answers.

Their advice? File a police report.

The Lowell Police Department's response was eye-opening. The officers there were incredibly supportive and honest. The officer at the front desk was well aware of the surge in check fraud in Lowell and the state. He shared that police investigations were overwhelmed by the increasing frequency of such incidents, reflecting a lack of support, knowledge, and action from banks. I was informed that this would not be investigated due to the lack of involvement from the banks due to acceptable “risk and loss”.

Our law enforcement needs more support and enablement for the hard work they have to do in fraud cases like this.

This experience isn't isolated. According to the management at my bank Lowell Five, several of their customers in Lowell, including business owners, have faced similar fraud after mailing their checks in recent weeks. It's alarming that checks, a staple of our financial transactions, can be so easily misused, both physically and online. It’s more alarming that this is turning into a serious situation in the city of Lowell, where thieves are able to EASILY steal from our mail and our banks without a trace or repercussions.


💡 The Bigger Picture and a Call to Action

  • Where's the Verification? With stringent bank regulations and compliance mandates, how can checks be cashed without proper verification of the payee's identity? Eastern and others in the area have some serious explaining to do.
  • Tracing the Culprits: It's hard to believe that there's no trail leading to the fraudsters. Our banking institutions must be more proactive in tracking and preventing such fraud.
  • Taking Responsibility: Banks have a duty to safeguard their customers. Online and physical check fraud cannot be taken lightly. It’s 2023 our systems are well-built to prevent crimes like this from occurring.
  • Law Enforcement Support: Police efforts against check fraud need stronger backing from banks to be effective. Our law enforcement needs better cooperation and support in their investigations. The banks must be held responsible for the transactions they approve.
  • Protecting the Vulnerable: As we approach the holidays, awareness is key. Our elderly and those who are ill and rely on payment and medications through the mail are on fixed incomes and are particularly at risk.

🛡️ Be Vigilant, Be Protected

Friends, this isn't just my story; it's a warning for all of us. Whether you're shopping online or mailing checks, stay alert. It's a call to action for our community, our banks, and our law enforcement to prioritize the safety of our financial transactions.

Let's share, discuss, and push for change. Perhaps it's time for check-cashing Authentication. Our financial security and trust depend on it.

#CheckFraudAwareness #FinancialSafety #CommunityAlert #checkfraud Eastern Bank Lowell Five Bank MAPFRE WFXT Boston 25 News 7 NEWS, WHDH-TV WBZ | CBS Boston Sam Curry

Ruth Kelley

Independent Consultant Behavioral Health

11mo

Nothingn to do with Eastern Bank, but We had the same thing happen to us, stolen mail, white washed checks and trying to steal our money from the bank, We were fortunate to catch this due to the same thing, a late bill from no other than the same insurance company, a call from another bank to approve the transaction which we did not respond to nd a trip to our bank to cancel our account, change all our business transactions , it took over six months to straighten this out. I had put a stop payment on the checks, three of them, and worked with CSB to addresss this issue. We recently had three checks lost in the mail, not the same situation but it scared us thinking here we go again, but I alwasy bring my mail inside the po now and recently even sent two bills certified mail at my expense to avoid another issue, This is very upsetting for all of us,

Hector Monsegur

Director of Research @ Alacrinet | Co-host of Hacker and The Fed Podcast | Speaker and Mentor

11mo

What the hell! Wow that's insane. Its funny, I recently had to cash a check and spent like 45 minutes going through various verifications.. they even called the customer that authored the check. I appreciated the security measures, but whats the deal with other banks that do not? I'm sorry this happened to you guys -- hopefully you were reimbursed. Next question is: do you know how the bad actor got a hold of your checks?

We'd appreciate the opportunity to speak with you as we are disappointed to learn about your experience. Please email your contact information to socialwebteam@easternbank.com, and a team member will call you directly. Thanks.

It's too easy for banks to wash their hands of this, leaving people with the liability and risk. It's absolutely within their power to take action, and they should. I know it's harder and more expensive from a process perspective, but if checks lose their trust-worthiness that's a giant FAIL. Our Dad had the same problem with checks that (a) weren't signed by him [with a forgery of our deceased mother, no less], (b) were sloppily written and inaccurate, (c) had no check numbers and (d) were in some cases not even checks from his bank (just check routing and bank account numbers). That bank left him out to eat the loss insanely as a pensioner. So let's combine all that: we have fake companies not being verified and potentially fake checks not being verified...? Sounds like a golden opportunity for a bank with a competitive advantage in, I don't know, verification (or even tying an authentication check into their phone app: hey "Did you issue this check?") and much worse a potential class action lawsuit for some enterprising lawyer out there. 🤔

Craig Lazinsky

Business Communications and Marketing Professional

11mo

You’re right on this, Red. Banks make it too easy to cash checks using mobile apps and not verifying identity. Seems as though the check forging and washing scams of the “Catch Me If You Can” 1960’s era are making a comeback!

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