System and method for providing recovery for victims of check fraud
View Patent ↗A method for a consumer to protect against loss associated with specified forms of check fraud. Upon purchasing checks, a consumer can subscribe to a check fraud protection program, for an additional fee. The subscription will enable the consumer to obtain reimbursement from the check printer for the consumer's losses due to specified causes. The consumer reciprocally assigns any right of recovery from the consumer's bank or financial institution to the check printer, which can then seek reimbursement from the bank, or financial institution and institute proceedings against the fraud perpetrator. Protection may be obtained for forged signatures, forged endorsements and altered check. A symbol to indicate such protection is also disclosed.
1. A computer implemented method for providing recovery for consumer victims of check fraud, comprising:
by a system having a database, receiving from said consumer an order for printing a series of checks for a checking account, wherein the order includes an order for check fraud protection;
printing checks according to the order;
recording in a record of the database, a range of numbers of the checks in such order;
receiving from the consumer a notification of an occurrence of check fraud against a check within the range of numbers of the checks in such order;
receiving from the consumer a written limited power of attorney authorizing collection of an amount of money fraudulently obtained from the checking account because of the check fraud against the check within the range of numbers of the checks in the order; and
issuing a reimbursement to the consumer the amount of money fraudulently obtained from the checking account and fees arising from the check fraud.
2. The method of claim 1 , wherein the check fraud is selected from the group consisting of:
legitimate blank check that is forged with an authorized signature;
legitimate check that is endorsed and presented by other than a designated payee based upon a fraudulent endorsement; and
legitimate check that is altered to benefit an altering party.
3. The method of claim 1 , wherein the printing checks further comprises printing indicia upon each check to signify a check fraud protection program.
4. The method of claim 1 , wherein the receiving notification of the occurrence of check fraud further comprises receiving documented proof of the check fraud.
5. The method of claim 4 , wherein the documented proof of the check fraud comprises a police report.
6. The method of claim 1 , wherein the receiving the written limited power of attorney further comprises receiving an assignment of a right of recovery by the consumer.
7. The method of claim 1 , further comprising:
upon receiving notification of the check fraud, printing a new series of checks for a new checking account that receives the consumer's funds after an original, compromised checking account is closed.
8. The method of claim 1 , wherein the consumer's checking account comprises a personal checking account.
9. The method of claim 1 , further comprising:
receiving, from the consumer, an assignment of a right of recovery against a financial institution upon which the check is drawn.
10. The method of claim 9 , wherein the written limited power of attorney and the assignment assign rights to a check printer, the method further comprising:
using the written limited power of attorney to pursue recovery from the financial institution for the check printer.