The situation in which an individual impersonates the holder of a savings account and, by presenting a forged withdrawal slip to the savings bank, receives from the bank a check payable to the bank's customer, is covered by the:
A) impostor rule.
B) negotiation rule.
C) assignment rule.
D) bank rule.

Question

Quizplus · Accepted Answer

The situation described is known as an impostor fraud, in which someone impersonates the account holder to withdraw money. The impostor rule addresses this type of fraud and holds the bank responsible for the loss, as long as the actual account holder did not contribute to the fraud.

The Situation in Which an Individual Impersonates the Holder of a Savings