My Bank Scammed Me out of $15,000

June 19, 2024 3:57 PM

I deposited a $15,000 check to a bank. Even thought the check cleared, and the bank has the money, they claim that it was a fraudulent transaction and refuse to allow me to withdraw it from my account. How do I get my money back and ensure that this bank suffers appropriate penalties?

I moved across country this spring. Library cards are always my first priority, so I opened a bank account to establish residency . Let's call it Salamander Bank. I deposited $100, got my statement, and with that, got my library card. Mission accomplished.

A week later, a close friend sent me a $15,000 cashier's check from his credit union. I deposited that, and Salamander Bank told me that because I was a new customer and the check was for a large amount, the funds wouldn't be available until the check cleared in a few days. Pretty normal, right?

I checked back a few times and was told that there was still a hold on the check. At first they told me that they needed to wait a bit because my account was so new. When I got impatient and started asking for details, they got aggressive and rude. Did I know the person who wrote the check? Did I meet them on Craigslist? How did I know them? In subsequent visits, they (literally) rolled their eyes at me and told me to wait, but no one ever came out to help me.

Finally, this week, I asked my friend to check in with his credit union. They told him that the check had cleared three days after I'd deposited it. There was never any problem with the check and Salamander had never contacted them about it.

When I confronted Salamander about this, their story changed. They said that the hold didn't have anything to do with the check or the credit union. They said that my account was locked because *I* was probably committing fraud. Now *I* had to prove that the check was legitimate. They want me to produce the title and the receipt - documents that the seller should have, not the buyer. My friend scanned in those documents, and I provided them but it didn't make a difference. My account is still under investigation.

The credit union who issued the check has recommended that I retain counsel and file a complaint with a few federal agencies. What is the best kind of attorney to contact? What agencies should I contact? I want my money back, but at this point, I want accountability more.

posted by chainringtattoo to Law & Government (22 answers total)

It would help to know what country this bank is located in.
posted by heatherlogan at 5:06 PM on June 19

assuming US:

https://www.consumerfinance.gov/ is the Consumer Financial Protection Bureau. You can file a complaint online here.

If you really suspect some kind of fraud, ReportFraud.ftc.gov is a great place to start.

Heck, if your local news has a "we fight for you" news anchor, call them too.

It may be that they're just doing a shitty job of explaining what their concern is: a pretty common scam is the "I'll send you a check for 3*x + some extra, because I need somebody to write 3 checks for x for ...reasons. To pay for your time and trouble, keep the extra." Another less common (but totally not impossible) scam is "bust out," where you open an account, drive up the balance really fast, cash out and disappear. That's harder to do bc there's protections like "waiting for the check to clear" but who knows what those slippery Salamanders are suspecting you of. (It's always projection.)

If you can talk to a manager and say "look, I get it, I must've triggered some kind of flag for extra scrutiny," that might help. It's not unreasonable that they took a second look (or a third look) at these transactions; it is unconscionable that they treated you like you're doing something wrong when you are following all the rules.
posted by adekllny at 5:10 PM on June 19 [3 favorites]

A check for $15K, even a cashier’s check, is going to trigger reporting requirements for the bank that processes it. Broadly this is a Know Your Customer enhanced due diligence situation, where you have a new account AND a large transaction. Ask to speak with the branch manager and ask how you can meet their documentation requirements. Then do that.
posted by fedward at 5:19 PM on June 19 [30 favorites]

I think it could be helpful to try to separate, in your mind and your emotions, ‘how do I get my money back?’ and ‘I want accountability and appropriate penalties.’

The former one, it’s pretty likely you’ll get your preferred outcome. The latter, mmmaybe somewhat less so. And focusing on the latter might reduce the chances of getting the former.

It brings my justice-loving heart no joy to give this advice, but then I’m reading from the tone of your question that you might need the money more than you need the satisfaction.
posted by box at 5:23 PM on June 19 [11 favorites]

As fedward mentioned, a new account plus a large transaction after opening the account will trigger all kinds of red flags for the credit union. This is one way people scam for money, or finance less than legal endeavors. If you can take a step back and look at the sequence of events the way the bank would, it does make sense for them to be extra cautious. Honestly if you asked this in the 1990s, I'd be surprised it took more than 3-5 business days. But in 2024, this is pretty expected now. They don't want to be party to financing a terrorist attack (a real concern banks have now), so the extra work the rest of us have to go through with legal, large deposits right after opening an account is a bit understandable, in my opinion.

At the very least, try to stop looking at it as "this bank is scamming me" and more as how to work with the bank to satisfy their concerns and get your money. Being angry with them won't help resolve the situation, if anything it will only make it worse.
posted by Meldanthral at 5:32 PM on June 19 [11 favorites]

I'm going to second adekllny's suggestion to look for a consumer-protection contact at your local (or provincial or national -- in my country the Canadian Broadcasting Corporation does this) news organization(s)... especially if you are a member of a visible minority. National bank HQ tends to step in very quickly to resolve things (and pin the blame on a local-branch teller) when the media starts making phone calls about shenanigans that stink of discrimination.
posted by heatherlogan at 5:33 PM on June 19 [1 favorite]

There have been many questions over the years about similar issues with banks and "Know Your Customer" usually crops up as the answer. In general, the regulators want the banks to be more cautious with things like large money orders, so it is probably an uphill battle to try to prove that they've done something wrong here.
posted by Mid at 6:48 PM on June 19

Cashiers checks are no longer reliable. They are commonly used in cashiers check scams. The bank things you’re trying to pull a variation on that scam because you are a brand new customer and it is a large check.

They should be willing to give you your money after a couple of weeks. Talking to them calmly and trying to understand their concerns could help make that happen or get you some money sooner.
posted by Winnie the Proust at 8:26 PM on June 19 [4 favorites]

Can you clarify the mention of receipt, title, seller, and buyer? Did your friend buy something from you? Did your friend sell something to someone else and get a check from them? You say the seller should have certain documents and if you are the one who received a large check I would expect you to be the seller if there is one in this situation.
posted by needs more cowbell at 9:15 PM on June 19 [6 favorites]

I know you say this is a close friend, but if you have not spoken directly to the credit union that issued the cashier's check yourself, I would do that.
posted by needs more cowbell at 10:30 PM on June 19 [2 favorites]

Please think back over the last five years. How many times have you paid in checks for 15k? And here you are doing it with a new account in a new location….the bank is not scamming you. It is doing its job. As you can tell from the questions people have raised, your description here is not very clear. Perhaps you provided more details to the bank but what you described here raises more questions than it answers. So they won’t release the money until they have evidence to conclude this is a legitimate receipt for you. Bank regulators require them to do that and they cannot piss off their regulator and maintain a banking license…

The way to resolve this is to speak to someone senior enough who can explain what they need you to do to help them conclude this is a legitimate transaction. And then you do that.

Before you have that conversation, put together details of the underlying transaction that causes your friend to pay you this large amount. Gather any relevant underlying records between your friend and you that evidence what the money is for.

It sounds a little bit as if there was another transaction perhaps involving a third party and for some reason the money went to your friend and not you?! If that is the case, you’ll need to explain that transaction and provide support for it. You’ll also need to explain why the transaction had to involve your friend, I.e. why the third party could not pay you directly.

Think about what questions somebody might ask to understand the facts and circumstances that resulted in your friend paying you 15k. Summarize it in short bullets and use that as a script when you talk to the bank. You may have to explain to more than one person or more than once and you want to be consistent. And the more evidence like contract or title you can show, the better.
posted by koahiatamadl at 2:00 AM on June 20 [5 favorites]

The people raising the seller/buyer question make a good point. Why did you receive 15k if you are not the seller? This question may be part of the difficulty you are having.
posted by Mid at 4:18 AM on June 20 [4 favorites]

Do you have ANYTHING ELSE to prove residency besides that library card?
posted by kschang at 6:51 AM on June 20 [1 favorite]

God, that is infuriating. How much of this whole process do you have in writing? I would immediately start a Google Doc and document every single interaction you have had with the bank, from the date you opened the account, date and location you deposited the check, date and time and person you contacted when it didn't clear, date you sent the supporting documents, etc., etc., etc. Document everything. The best lawyer in the world isn't going to be able to do anything without as much information and proof about the situation as you can muster. Do not talk with anyone on the phone or in person at this point. I would give them one last chance, write a letter instructing them to close your account and issue you the balance within seven days of receipt. Include the documentation from your friend. Send it registered mail. You can always submit complaints to the appropriate agencies later.
posted by wnissen at 9:21 AM on June 20

The more you treat the bank like they are violating your rights, the more they are not going to release your funds, because it (a) makes them suspect you all the more and (b) would make them look like total schmucks if it turns out the check was obtained through fraud or was paying for something illegal.
posted by MattD at 3:10 PM on June 20

You claim your friend "gave" you $15k. Was this a gift? Is there any way to document the underlying transaction? It's great to have friends who kick that kind of your money your way, but most people don't have those kind of friends. So the bank is suspicious. Of course, your friend filed a gift tax return, right? Oh, he didn't. Hmmm. Cashier's checks typically clear immediately, then 30 days later, when the instrument is deemed fraudulent, the transaction is reversed. Because you only have $100 in your account, the bank can't ding you for the bad instrument.

Go with your friend to your friend's bank and get cash. Problem solved.
posted by tesseract420 at 7:41 PM on June 20

They said that my account was locked because *I* was probably committing fraud. Now *I* had to prove that the check was legitimate.

You came to this bank new to town, with - from your description - a library card, I assume (please correct me if I'm wrong) an out of state drivers license since you'd just moved, and a large, physical cashier's check from another institution. If I were a bank, I would also be extremely suspicious of this transaction and put as many holds on it as I could. The burden of proof is absolutely on you at that point - it's 2024, library cards aren't exactly a strong proof of identity for financial purposes (as much as I love libraries).

At this point, no amount of anger you direct towards your bank is going to change their mind. Get the idea of "accountability" out of your mind for now and approach this with a level head from here on in. You need to work with your friend to get physical, not digital, documentation proving the original transaction was legit - get an actual paper copy of the receipt/other half of the cashier's check, to start with. Your friend's bank should be able to provide that.

Also, you mention a "title" - was this check for the purchase or sale of a vehicle? Can you prove that? Gather all that stuff, and your friend if possible, and be prepared to take all of it to your bank and explain the transaction from start to finish, with the documentation as reinforcement.

Is that fair? No. Is that the way it should work? Absolutely not. But is it what you need to do at this point? Sadly, yes.

At this point, in short, you need to prove to your bank:
- that the transaction was legitimate
- that the transaction was for a legitimate purpose (was it a gift? Was it for a purchase? you really need a paper trail here)
- that you are actually entitled to possess the money from this transaction (see 1 & 2 above)

What you are NOT entitled to do is get mad at your bank because you, a person with a short-term relationship with your bank, cannot provide concrete proof that them not honoring an easily forged financial document means that you're out $15k.

I'm sorry to sound harsh, but that's how they look at it, and that's how you need to approach this at this point, since they have a hold on the money. Given what you said you've provided them, the bank has no reason to trust you; that sucks, but it's the way it goes, and you have to give them those reasons.

Good luck.
posted by pdb at 8:01 PM on June 20 [1 favorite]

You came to this bank new to town, with - from your description - a library card

No, the OP didn't use the library card to open the credit union account. They opened a bank account to prove residency so they could get a library card.

On the substantive issue… Although it's annoying, I would be reassured that the bank is taking the risk of scams and other financial crimes this seriously. A large cash (a cashier's cheque is functionally cash) deposit would raise red flags, and in a new account it would raise even more. Here in Australia the Anti-Money Laundering / Counter-Terrorism Financing reporting threshold for transactions is AU$10,000, or around US$6,700, so I'm not at all surprised that you've stumbled into their security systems.

I'm not sure what the selling/buying aspect is here. Was it a gift or did you sell something? If you've been similarly unclear with the bank about the nature of the transaction, they're probably even more suspicious now.
posted by robcorr at 9:45 PM on June 20

"You claim your friend "gave" you $15k. Was this a gift?" ... "Of course, your friend filed a gift tax return, right? Oh, he didn't. Hmmm."

Unnecessary for gifts up to $18k.
posted by Jacqueline at 9:01 AM on June 21 [1 favorite]

Salamander Bank should have their policies available to you regarding large deposits. What do they say?

If this is a US Bank, they are required to ask for additional information regarding transactions over 10,000 dollars, or transactions deemed "suspicious", by federal law. If you're being circumspect about giving them the information that they require it only looks worse for you re:suspicious activity- especially with a newly opened account (has it been less than 30 days?).

If a US Bank has put an extended hold on your funds, they need to give you a notice stating the reason for the hold and when the funds will be available. It's not clear from your question how long the bank has held the funds since your deposit. It's also not clear if you're trying to withdraw the entire amount, or just part. From here:

Official government checks (such as U.S. Treasury checks and state and local government checks), postal money orders, cashier's checks, certified checks, teller's checks, and traveler's checks deposited in amounts of up to $5,525 in one day are generally available in one or two business days after the banking day that they are deposited. However, the amount more than $5,525 might not be available until the ninth business day following the banking day on which the funds are deposited. Note that your bank may require the use of a special deposit slip for these kinds of checks.

If you've provided all the information they've requested and they haven't sent you a notice and it's past the ninth business day, you should definitely report this bank.
posted by oneirodynia at 12:33 AM on June 22 [1 favorite]

To clarify my previous comment: as a teller looking at this situation and wondering what could be happening besides your bank just jerking you around* or doing something they should not be doing, your friend seems like the weak link here. You only have it on his word that the check was legitimate, was issued by his credit union [which implies: with funds from his account at that credit union] and that it cleared. You say it was a cashier's check, which would not have identifying details on it about who obtained the check. Did your friend sell something of yours to a third party on your behalf, and perhaps collect a cashier's check from that third party that he did not watch being issued? It is possible the third party forged or altered the cashier's check. Or if there is no third party, is it at all possible your friend has done something shady and given you a forged or altered cashier's check?

With so much attention given to various online scams and hacking these days, I think people forget that old-fashioned paper check fraud is unfortunately still alive and well. And if you somehow ended up presenting a forged or altered check to your new bank, the bank may be trying to determine whether you are in on the fraud or an innocent victim. This is one reason I can think of for them wanting to see transaction receipts like you describe.

*and I'm not saying they're not jerking you around! I work at a small bank and we don't jerk our customers around, I know Salamander is a big bank and may well have less good customer service
posted by needs more cowbell at 2:37 AM on June 23

Response by poster: Update! They were indeed jerking me around and/or spectacularly incompetent. An attorney friend wrote them a sternly worded letter and I got my money back within 24 hours.
posted by chainringtattoo at 4:16 PM on July 23 [4 favorites]