Check fraud: How it happens, how you can avoid it

A lawsuit by a Nassau County couple whose retirement account was pillaged by con artists has shone a harsh light on the vulnerability of our financial nest eggs.

Nicholas J. Ventresca and Michele R. Ventresca, both 70, filed the lawsuit against Bethpage Federal Credit Union after $127,000 was stolen from their money market retirement savings account.

Four bogus checks, written on the Ventrescas' account, were cashed at outside banks between March and April 2022.

In a statement, the credit union said it was not responsible for the loss because the couple had failed to notify officials within the 60-day reporting window specified in the membership agreement.

"When fraud does occur, the affected member's timely identification of the fraud is critical to our efforts to recover lost funds,” a Bethpage official said.

Regardless of the lawsuit's disposition, experts say account holders are vulnerable and need to remain vigilant to safeguard their financial lives. Their advice follows: 

How do scam artists get information that lets them create fake checks or put together identifying information to enter accounts?

How can account holders find out what pieces of their online identity have been compromised?

Do grifters use electronic banking to evade detection?

What are the best ways to lock down your key banking information?

What other measures can we take?

Who is responsible for the uptick in check fraud?

How do these scamsters set up a bank account that lets them cash the checks that they've stolen?

Does the Federal Deposit Insurance Corporation or the National Credit Union Administration protect depositors against fraud?

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.