System and Method for Providing Recovery for Victims of Check Fraud

Abstract

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.

What is claimed is: 
     
         1 . A method for providing check fraud protection, the method comprising:
 providing printed checks to consumers according to subscriptions for a check fraud protection service for a series of checks, the subscriptions including an order for check fraud protection, and wherein a record of the checks having the check fraud protection is maintained in a database;   providing a reimbursement to at least one consumer that is a victim of check fraud, for an amount of money fraudulently obtained from a checking account, based on a notification of an occurrence of check fraud against a check recorded in the database; and   collecting the amount of money fraudulently obtained from the checking account based upon a limited power of attorney from the consumer authorizing the collection.   
     
     
         2 . The method of  claim 1 , further comprising printing checks according to the subscriptions. 
     
     
         3 . The method of  claim 1 , wherein the check fraud is selected from the group consisting of:
 a legitimate blank check that is forged with an authorized signature;   a counterfeit check;   a legitimate check that is endorsed and presented by other than a designated payee based upon a fraudulent endorsement; and   a legitimate check that is altered to benefit an altering party.   
     
     
         4 . The method of  claim 1 , wherein the providing printed checks further comprises printing indicia upon each check to signify a check fraud protection program. 
     
     
         5 . The method of  claim 1 , further comprising receiving documented proof of the check fraud. 
     
     
         6 . The method of  claim 5 , wherein the documented proof of the check fraud comprises a police report. 
     
     
         7 . The method of  claim 1 , further comprising receiving an assignment of a right of recovery by the consumer. 
     
     
         8 . The method of  claim 1 , further comprising 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. 
     
     
         9 . The method of  claim 1 , wherein the consumer's checking account comprises a personal checking account. 
     
     
         10 . 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. 
     
     
         11 . The method of  claim 1 , further comprising using the written limited power of attorney to pursue recovery from the financial institution for the check printer. 
     
     
         12 . A system for providing check fraud protection, the system comprising:
 a database; and   one or more processors configured to:   provide printed checks to consumers according to subscriptions for a check fraud protection service for a series of checks, the subscriptions including an order for check fraud protection, and wherein a record of the checks having the check fraud protection is maintained in a database;   provide a reimbursement to at least one consumer that is a victim of check fraud, for an amount of money fraudulently obtained from a checking account, based on a notification of an occurrence of check fraud against a check recorded in the database; and   collect the amount of money fraudulently obtained from the checking account based upon a limited power of attorney from the consumer authorizing the collection.   
     
     
         13 . The system of  claim 12 , the system further configured to issue a reimbursement for the amount of money fraudulently obtained arising from the check fraud. 
     
     
         14 . The system of  claim 12 , the system further configured to print checks according to the subscriptions. 
     
     
         15 . The system of  claim 12 , wherein the check fraud is selected from the group consisting of:
 a legitimate blank check that is forged with an authorized signature;   a counterfeit check;   a legitimate check that is endorsed and presented by other than a designated payee based upon a fraudulent endorsement; and   a legitimate check that is altered to benefit an altering party.   
     
     
         16 . The system of  claim 12 , the system further configured to print indicia upon each check to signify a check fraud protection program. 
     
     
         17 . The system of  claim 12 , the system further configured to receive documented proof of the check fraud. 
     
     
         18 . The system of  claim 17 , wherein the documented proof of the check fraud comprises a police report. 
     
     
         19 . The system of  claim 12 , the system further configured to receive an assignment of a right of recovery by the consumer. 
     
     
         20 . The system of  claim 12 , the system further configured to print a new series of checks for a new checking account that receives the consumer's funds after an original, compromised checking account is closed. 
     
     
         21 . The system of  claim 12 , wherein the consumer's checking account comprises a personal checking account. 
     
     
         22 . The system of  claim 12 , the system further configured to receive, from the consumer, an assignment of a right of recovery against a financial institution upon which the check is drawn. 
     
     
         23 . The system of  claim 12 , the system further configured to use the written limited power of attorney to pursue recovery from the financial institution for the check printer.