A Calgary man lost nearly $700 after a cheque he wrote was cashed twice, once through a mobile banking app, and the second time after being signed over to someone else.
Nathan Chan wrote the cheque for $678.75 in March 2018 to a contractor.
He thought everything was fine until he recently noticed it was deposited twice; once when he handed it over and a second time four months later.
"You write a cheque and you think it’s a one-time deal," Chan told CTV News.
Servus Credit Union, Chan's bank, says the situation he was presented with is called 'double presentment.' It's where the cheque is deposited twice, once through a mobile banking app's scan feature and against by depositing the physical document at the branch.
Officials say it most often happens when the cheque itself is lost or destroyed but then someone else finds it or steals it in order to deposit it again.
The company also says these instances can be difficult to detect and prevent and recommends consumers monitor their transactions and report suspicious activity quickly usually within 30 days, but Chan only discovered the issue well after that.
After CTV News got involved in the story, Chan says the issue has been fixed but says he wants his story to be a warning to others.
Servus Credit Union told CTV News in a full statement that it strives to help all of its customers in every situation:
Servus recognizes that being the victim of a crime is a terrible experience and we will do our best to help our members through these unfortunate situations and get their money returned when possible. If someone reports a loss to Servus within 30 days of their last statement and we can verify it, we will refund the money.
Double presentment describes a crime where a cheque is cashed twice, most often through a mobile deposit app. Most often this happens when the physical cheque is not destroyed after the first and legitimate deposit, and someone else finds or steals it, then deposits it again.
Because these crimes can be difficult to detect and prevent, it is very important for all consumers to monitor their transactions and report suspicious activity quickly. If someone reports a fraud to Servus within 30 days of their last statement and we can verify it, we will refund the money. Our investigation may take a day or two and then refunds are made quickly in verified cases.
Consumers have other options to recover their money through the Canadian Payments Association and their bank. For a 'double presentment' the Canadian Payment Association gives cheque issuers 90 days from the second cheque deposit to report it, and can be reimbursed. The CPA will also arrange to return funds up to six years after a questionable cheque clearing if the cheque writer gets a declaration from the original payee that the funds were not received.
Servus also reimburses loyal and valued members outside the above policies in circumstances where the member is clearly not to blame.
Servus is always sorry to learn that anyone has been a victim of crime. The key to detection and return of funds is regular monitoring of accounts and immediate reporting of unusual transactions. By working together we can get funds returned quickly where a crime is verified, putting people back in charge of their finances.
