If a third party check is presented, what action should you take?

If a third party check is presented, what action should you take?

• A. Refuse the check or obtain officer approval and note the officer's name and extension.
• B. Accept the check as normal.
• C. Send the check to processing without review.
• D. Ask the customer for more information.

Answer: (A)

Handling third-party checks carries a higher fraud risk, so the right approach is to pause the transaction and involve a supervisor or officer to verify the check before proceeding. Refusing the check or obtaining officer approval and recording the officer’s name and extension creates an audit trail and ensures the check’s validity and compliance with bank policies. This protects both the customer and the bank from potential losses. Accepting the check as normal or sending it to processing without review bypasses essential controls, while asking for more information without escalation doesn’t address the need for supervisor verification.

Handling third-party checks carries a higher fraud risk, so the right approach is to pause the transaction and involve a supervisor or officer to verify the check before proceeding. Refusing the check or obtaining officer approval and recording the officer’s name and extension creates an audit trail and ensures the check’s validity and compliance with bank policies. This protects both the customer and the bank from potential losses. Accepting the check as normal or sending it to processing without review bypasses essential controls, while asking for more information without escalation doesn’t address the need for supervisor verification.