Although a forged check can clear in a matter of days, the victims of the checks typically bear no liability provided they perform due diligence on their bank accounts. Neglecting to resolve the matter can shift the blame to the victim or the bank.

The Facts

As of 2009, the United States dictates that the party who forges a check retains liability for legal consequences and financial responsibilities, even though the person does not sign his real name.

Misconceptions

Not all checks signed by someone whose name is not on the check count as forgeries. A bank might cash a check signed by a third party if he holds the legal right to sign it, such as a legal guardian for a probate.

Bank and Consumer Liability

Banks become liable for any loss due to a forged check if they disregard normal guidelines of the financial industry to screen for forgeries. Customers may bear liability if they do not review bank statements for errors within a reasonable time frame.

Proving a Forgery

If the bank refuses to absolve the victim of liability in a forgery dispute, he may need to prove forgery in a court of law. Generally, the courts side with the defendant (usually the bank) unless the plaintiff (person disputing the forgery) can prove a forged signature.

Time Frame

In most cases, a person has one or two years to dispute liability for a forged check, depending on the state. Since checks usually clear in two to five days, citizens should frequently check bank statements.

Source:

LegalMatch.com; What is a Forged Check?

CKFraud.org; Check Fraud-Who is Liable