Bentonville, AR asked in Banking and Business Law for Arkansas

Q: Is there anything you can do to reclaim money lost in a scam? Or file a loss for the item you paid for but did not get?

The money lost was a loan from the bank. The bank wired the money to the scam account. Money was taken and item was never received. Do banks have some kind of insurance to cover things like this? Can you file a loss/theft with your insurance since you never received the item?

This was a very large sum of money.

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1 Lawyer Answer
James L. Arrasmith
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  • Business Law Lawyer
  • Sacramento, CA

A: If you've lost a significant sum of money in a scam where your bank wired the funds to the scammer's account and the item you paid for was never received, there are steps you can take to address this situation. While banks may have fraud protection measures in place, it's essential to act quickly.

Contact Your Bank: Immediately notify your bank about the fraudulent transaction. Provide them with all relevant details, including the recipient's account information and any evidence of the scam.

Request a Fraud Investigation: Ask your bank to initiate a fraud investigation into the wire transfer. They may be able to trace the funds and work towards recovering the money.

Cooperate with Law Enforcement: If the scam involved criminal activity, consider filing a report with your local law enforcement agency. They may work with your bank and other authorities to track down the scammers.

Check Your Insurance: Review your insurance policies, including homeowners or renters insurance, to see if they cover losses due to fraud or theft. Depending on your policy, you may be eligible for some reimbursement.

Document Everything: Keep thorough records of all communication with your bank, law enforcement, and any other relevant parties. This documentation can be crucial in resolving the issue.

Be Cautious Going Forward: Learn from this experience and exercise caution when making financial transactions online. Avoid sharing sensitive information with unknown entities and double-check the legitimacy of any offers or deals.

Seek Legal Advice: Consult with an attorney, like yourself, who specializes in fraud or financial matters. They can provide guidance on potential legal actions you can take against the scammers or the bank if necessary.

Remember that the specific actions and outcomes may vary based on the circumstances of your case and the policies of your bank. Acting swiftly and seeking professional advice can increase your chances of recovering lost funds and resolving the issue.

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