[USER]

I ordered checks for my brokerage account but they were stolen in transit and the thief has written two checks. My brokerage firm isn’t to blame.

This was a theft of US mail. I mention this to hopefully prevent any bashing of brokerage firms.

I called my brokerage. They put a fraud alert on the account. They will close that account and create a new account for me since the fraudster has the account number (printed on the checks).

They stopped payment on all check numbers that had been issued to me but never received.

That prevented the most recent check from posting but the first stolen check already posted.

I transferred the remaining money out of the account as a backup measure to the stop payments though I’m told the stop payment is effective immediately.

Tomorrow I’ll file a police report with the details the customer support rep gave me about the names on the checks and what banks they were deposited to.

My question is, is there any path to recovering the stolen money?

I don’t believe SIPC covers theft and the cash wasn’t covered by FDIC though I don’t believe FDIC covers theft anyway.

[Mayra]

My husband is a retired postal inspector. Usually, the brokerage company would request a chargeback to the bank where the checks were negotiated.

All the major banks have their own fraud investigators to investigate these crimes.

I highly doubt you would be liable for these losses although it may take a little while for the matter to be sorted out.

[Dave]

I assume you’ve reported this to the Postal Service? They take crimes committed by mail *incredibly* seriously because they are federal offenses.

[Sayee]

Wow. Why would anyone do this obvious traceable crime is beyond me. I researched in Quora and they say one can file a claim with SiPC

[Amanda]

This happened to me. I had to file a police report and they did end up catching the person as they wrote a check to the pizza place and had the pizza delivered to his house.

(This was obviously years ago).

The bank did recoup my money and gave it back to me. 3 checks posted before they were all frozen.

I had to supply the police report to get the money covered.

[John]

What is the brokerage firm? I’m surprised they didn’t make it right, since they offer check writing.

[Beatrice]

They can’t deposit the checks. Your name is on them. Plus they are traceable.

How stupid one can be..

[Eric]

Can you go after the retailer/bank who accepted the check without ID?

[Vannie]

I am confused reading this, from what I understand, brokerage accounts are where you invest your money, if you want to cash out, you need to sell your investment, than transfer the money to the bank account that it link to …

I didn’t know can using a check, can someone explain?

[Rob]

Maybe a stupid question, but why would you need checks? I’ve been a victim of fraud from checks before. I avoid them if I can.

Only accounts that always have small balances, never large balance accounts

[Tracy]

The USPS has law enforcement of their own. I would call them and report it as well.

[Molly]

I had a check to my church stolen and filed a police report. They pulled the bank security footage to see if they could identify who cashed it but the film was too grainy.

But definitely file a police report.

[Joyce]

Your brokerage can also file a fraud claim (an affidavit from attaching fraud check image with notary) to the depository bank (fraudster’s bank) in an effort to get the money back.

The trace may take a while.

If the fraudster already cashed the check then you are out of luck, if the fraudster still has some money in the account, the depository bank may help claw some back。

[Author]

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