Stolen check who is responsible

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Such policies would include a procedure employees should follow to report lost or stolen checks, and a statement that the company will notify the bank and try to stop the check, if they are able to do so. You can reissue the check if it can be stopped — but if the check has already been cashed, the company likely has no liability as long as it followed its usual procedure to provide the check to the employee.

The policy, however, should state that is the company is unable to stop payment on the original paycheck, the employee will be responsible for the loss.

These standards were never intended to be laws. Rather, they were intended to be informative guidelines to assist the states in establishing their own codes and laws pertaining to banking practices.

Article 4 of the UCC addresses all bank transactions involving collections and issuance of funds. It is up to the customer account holder to notify the bank that a check is invalid or that it has been stolen before the funds are released. There are a variety of ways that an account holder may seek relief in the case of a stolen check. What can I do? Don't see what you're looking for? Browse related questions I lost a check written to me. Someone forged my signature on the back of the check and then cashed it.

When you speak to them, you'll want to take a few actions regarding your account. First, notify them of the checks showing up on your account that you didn't personally write so that they can make a note and do an investigation into who cashed them.

Second, tell them you want to stop any remaining checks from being processed in case more have been stolen. Even if your bank doesn't suggest it, consider having your checking account closed and getting a new account for the most security.

Keep in mind that you'll need to ensure you update any parties that use your bank account to pay bills or send you payments. This includes any direct deposit for your employer, automatic bill payments from utility companies, credit card companies and the like. Whether you're the check's payer or payee, you should also reach out to the local police department since having the wrong person cash a check is a form of identity theft.

In fact, your bank or check issuer might make this a requirement as part of the fraud reporting process when you call. Whether you visit the police or they come to you, be prepared with your latest statements showing the fraudulent checks coming out of your account or proving the check was mailed to you.