System and method for providing recovery for victims of check fraud

• US 9,710,813 B2
• Filed: 06/05/2014
• Issued: 07/18/2017
• Est. Priority Date: 10/15/2002
• Status: Expired due to Term

• Current Assignee: Sontiq, Inc.
• Original Assignee: Ezshield Incorporated
• Inventors: Illingworth, Ken, Briggs, Brian D., Browning, John C.
• Primary Examiner(s): Cheung, Mary
• Application Number:
  US14/297,596
• Publication Number:
  US 20140289123A1
• Time in Patent Office: 1,139 Days
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising

Abstract

A method for a consumer or business to protect against loss associated with specified forms of check fraud. Upon purchasing checks, a consumer or business can subscribe to a check fraud protection program, for an additional fee. A consumer or business may purchase Check Fraud Protection for an additional fee independent of purchasing checks. The subscription will enable the consumer or business to obtain reimbursement from the service provider for the consumer'"'"'s losses due to specified causes. The consumer or business reciprocally assigns any right of recovery from the consumer'"'"'s or business'"'"'s bank or financial institution to the service provider, which can then seek reimbursement from the bank, or financial institution and institute proceedings against the fraud perpetrator. Protection may be obtained for forged signatures, forged endorsements and altered check. A symbol to indicate such protection is also disclosed.

Claims

1. A method for providing recovery for victims of check fraud, comprising:

by a system having an electronic database, a Check Fraud Protection service provider receiving subscriptions from one or more subscribers for a check fraud protection service;

said subscription identifying and recording in a record of the database, a checking account and a sequence of numbered checks to be covered by said check fraud protection service;

said Check Fraud Protection service provider electronically receiving from the subscriber a notification of an occurrence of check fraud against a check within a range of numbers of the checks in such sequence of numbered checks;

said Check Fraud Protection service provider providing to the subscriber at least a portion of the amount of money paid from the subscriber'"'"'s checking account arising from the check fraud; and

said Check Fraud Protection service provider pursuing recovery for the check fraud; and

upon the Check Fraud Protection service electronically receiving notification of the occurrence of check fraud, directing, by the Check Fraud Protection service, a check printer to print a new series of checks for a new checking account that receives the subscriber'"'"'s funds after the compromised checking account is closed.

2. The method of claim 1, wherein the receiving from the subscriber the notification of the occurrence of check fraud includes receiving a notification of check fraud including at least one of:

a legitimate blank check that is forged with an authorized signature;

a legitimate check that is endorsed and presented by other than a designated payee based upon a fraudulent endorsement; and

a legitimate check that is altered to benefit an altering party.

3. The method of claim 1, wherein the subscription identifies a sequence of numbered checks from a pre-existing box of checks, said subscription being for a term of months.

4. The method of claim 3, wherein the checks from said pre-existing box of checks have been printed by a Check Fraud Protection service provider approved vendor.

5. The method of claim 1, wherein the subscription identifies a sequence of numbered checks for a new order of checks, said method further comprising:

receiving from said subscriber an order for printing a series of checks for the checking account, wherein the order includes an order for check fraud protection;

providing checks according to the order; and

recording the range of numbers of the checks in such order.

6. The method of claim 5, wherein the step of providing checks further comprises the step of printing indicia upon each check to signify that such check is enrolled in the check fraud protection program.

7. The method of claim 6, further comprising:

verifying enrollment in said check fraud protection service based upon indicia upon the check, and the reimbursing is performed after a positive verification.

8. The method of claim 1, wherein the step of receiving notification of the occurrence of check fraud further comprises receiving documented proof of such fraud.

9. The method of claim 8, wherein such documented proof of such fraud comprises a police report.

10. The method of claim 1, further comprising the Check Fraud Protection service provider receiving a right to pursue recovery for such check fraud further comprises receiving an assignment of the right of recovery by the subscriber.

11. The method of claim 1, wherein the one or more subscribers is an individual customer.

12. The method of claim 1, wherein the one or more subscribers is a business.

13. The method of claim 1, wherein the checking account comprises a personal or a business checking account.

14. The method of claim 1, wherein the Check Fraud Protection Service provider receives a right of recovery by the subscriber against a financial institution upon which the check is drawn.

15. A method for providing recovery for victims of check fraud, comprising the steps of:

by a system having an electronic database, establishing a Check Fraud Protection service provider to receive subscriptions for a check fraud protection service;

said Check Fraud Protection service provider receiving a subscription for said check fraud protection service, said subscription identifying and recording in a record in the database, a checking account and a sequence of numbered checks to be covered by said check fraud protection service;

said Check Fraud Protection service provider electronically receiving from the subscriber a notification of an occurrence of check fraud against a check within the a range of numbers of the checks in such sequence of numbered checks;

said Check Fraud Protection service provider providing to the subscriber at least a portion of the amount of money paid from the subscriber'"'"'s checking account arising from the check fraud; and

upon the Check Fraud Protection service electronically receiving notification of the occurrence of check fraud, directing, by the Check Fraud Protection service, a check printer to print a new series of checks for a new checking account that receives the subscriber'"'"'s funds after the compromised checking account is closed.

16. A system for providing recovery for victims of check fraud, comprising:

an electronic database; and

one or more processors configured to;

receive subscriptions from one or more subscribers for a check fraud protection service;

each of said subscription identifying and recording in a record of the database, a checking account and a sequence of numbered checks to be covered by said check fraud protection service;

receive from the subscriber a notification of an occurrence of check fraud against a check within a range of numbers of the checks in such sequence of numbered checks;

provide to the subscriber at least a portion of the amount of money paid from the subscriber'"'"'s checking account arising from the check fraud; and

upon receiving notification of the occurrence of check fraud, directing, a check printer to print a new series of checks for a new checking account that receives the subscriber'"'"'s funds after the compromised checking account is closed.

17. The system of claim 16, wherein the check fraud is selected from the group consisting of:

a legitimate blank check that is forged with an authorized signature;

a counterfeit check;

a legitimate check that is endorsed and presented by other than a designated payee based upon a fraudulent endorsement; and

a legitimate check that is altered to benefit an altering party.

18. The system of claim 16, wherein the system is further configured to print indicia upon each check to signify a check fraud protection program.

19. The system of claim 16, wherein the system is further configured to receive documented proof of the check fraud.

20. The system of claim 19, wherein the documented proof of the check fraud comprises a police report.

21. The system of claim 16, wherein the system is further configured to receive an assignment of a right of recovery by the subscriber.

22. The system of claim 16, the system further configured to receive, from the subscriber, an assignment of a right of recovery against a financial institution upon which the check is drawn.

23. The system of claim 22, the system further configured to obtain a written limited power of attorney from the subscriber to pursue recovery from the financial institution.