Story About a Stolen Paycheck of $114,000

[Jason]

https://www.msn.com/en-us/money/ret...1&cvid=a5c750223e63400882e58dea4088762f&ei=13

Paper checks in 401(k) rollovers expose savers to serious risks, including:

• Fraud and theft: Physical checks are easier to intercept, alter or cash without authorization.
• Delays and inconvenience: Mailing checks, waiting for them to clear and making sure they reach the right hands can take weeks — sometimes months. Capitalize found that 42% of savers experienced rollovers that took two months or more.
• Lack of transparency: Tracking paper checks and resolving problems can be a nightmare. In fraud cases, figuring out who’s responsible and recovering money is often a complex, drawn-out process.

How might this be prevented? Does anyone know any other stories similar to this one? This is quite shocking.

 

[Nomad]

I think you can easily prevent cashing out your checks if they are stolen. You can immediately report your bank and ask to take action when someone with the check comes in to cash out. In our country, your checks will be cashed out only when it was written for you. You will have to show proof of identity.

 

[Scorpion]

This is really concerning.. Electronic transfers seem like the obvious solution direct trustee-to-trustee transfers eliminate most of these risks since there's no physical check to steal or lose. I'd also suggest requiring signature confirmation and using certified mail if paper checks are unavoidable. Haven't personally experienced this but it's scary how vulnerable people are during rollovers.

 

[uptrendfinancialsignal]

This is crazy!!! Just like that, $114,000 gone! I think the banks should put in a higher verification check when big checks are to be cashed. A verification to confirm from the issuer can also be done through a digital platform. I think the banks should no this already.