How do you handle accounting for bank fraud?

I was leaning that way.  How would you categorize such an expense account?  Other Expenses -> Other Miscellaneous Expense 

I have always put it under Expenses/Bank Charges. It's an in-and-out by the bank and not really a business expense, and it nets to zero.

Okay, thanks for the help.  I will consider that.   This one wasn’t so in and out.  We had to fight it then apeal because the seller was disputing but it was clearly not us that made the charge.  

Anyway it took a ok a few months.  But I can see still using the bank charges type

How about if it is a fraud concerning our debit card?  We had 2 charges on debit from our checking. The bank refunded them, in ONE deposit. How do I enter it in deposits?  Thanks 

Hey Everyone, I created an Other Current Assets account to record fraudulent payment from our company's checking account used to pay an unknown person's credit card via chase epay. This happened in 2019, and funds have not been reimbursed to our company yet so I wanted to keep it on the books until funds are returned to us.

In my case the fraud was using my debit card. The bank did not want to refund the money. How do I post the stolen money in QB. I guess I should create an account for that fraud expense, but I don't have a credit from the bank. 

Good evening, @Osimon72.

I'd be glad to provide information with recording this in QuickBooks.

To ensure that your books are accurate, I'd first reach out to your accountant to make sure the specifics are correct.

You can also refer back to the information provided by my colleague @Regina_Lend_A_Hand_Accounting with creating an account as well.

If you have any more questions or concerns, please don't hesitate to comment below. Have a good rest of your day!

We were the victim of bank wire fraud. A good size amount of money was sent out of our business account.  Now after 2.5 months, our bank finally returned it to our account.

My question is how do we handle the amount taken out and handle the amount that came back in so it doesn't show as expense out and income in as we have it now. 

We are not very sed to chart of accounts, but could use some category

Thanks.

Creating an Expense account makes sense.

Would you "Write a Check" for the fraud amount or would you enter a bill and then enter a credit?
What vendor would you associate it with, The Bank?

Thanks for joining this thread, pcarew.

Fraud transaction is part of your expense. That being said, you can create an expense transaction. Simply go to the + New button and select Expense.

In addition, we can save the expense transaction even without a vendor. All we have to make sure is that we've selected the correct expense account for fraud and the affected bank.

You'll want to check this link for your reference on how to prevent credit card fraud.

Click on Reply and leave a comment if you have more questions. Have a great day!

Thank you for replying, but where is the "+New" button?

I'm on QB Pro 2015 Desktop version.

Hello, pcarew. 

Thank you for reaching back to the Community. The +New button is only available for QuickBooks Online version.  

Though, you can create a bill and credit it to a designated vendor. However, we need to ensure that we've chosen the accurate expense account for fraud and the affected bank. 

To make sure that your books are accurate, I'd suggest reaching out to your accountant to ensure that everything is correct.

Check this article for future reference: Prevent credit card fraud. 

If you have any more questions or concerns, please don't hesitate to click the Reply button. Have a great day, and stay safe!

Thanks for turning to the Community about payroll checks, @A35351.

You can void the created checks that were sent to the fraudulent account. This will change your paycheck records and update the paycheck dollar amount to zero.

Here's how:

1. Go to Workers from the left menu. 
2. Go to the Employees tab. 
3. From the list, select the employee involved. 
4. Go to the Paychecks List tab and set the date range. 
5. Mark the box for I understand that this action cannot be undone box.
6. Select the paycheck number and click Delete. If it’s not the latest one, the option will show Void at the bottom.   

I’m also adding articles that cover this process: Void or Delete Paychecks.

Also, if you get some errors while voiding the transaction, I'd suggest contacting our Payroll Support Team. They have tools that void the check and provide other steps to get this resolved. You can click this link on how to reach them: QuickBooks Online Support.

In case you want to process payroll again for your employee's, you can check out this article: Create paychecks in QuickBooks Online Payroll

As always, please don't hesitate to report any suspicious calls or emails from parties claiming to be from Intuit. You can refer to this article for details: Reporting fraudulent calls or emails.

Additionally, QBO offers several payroll reports that you can pull up to access your business and employee information. To get started, see our Payroll reports page.

I'll be around the Community if you have other questions. Please don't hesitate to let me know in the comment section. Take good care, @35351.

Is Quickbooks always this horrible with handling fraudulent charges? Was there a security breach which gave out your customers info? I am appalled by this company

I wish I could make your experience better, JAY109.

Rest assured that we're doing our best to keep your data private and secure. 

Let me make it up to you by ensuring these fraudulent charges get investigated.

I'd recommend reaching out to our QuickBooks Support Team. They have secure access to your account and can review the logs made in reference to these charges. They can also determine its main cause to ensure it won't happen again.

Here's how to contact our support:

1. Go to the Help (?) icon at the top.
2. On the Assistant tab, click Talk to a human.
3. Enter your concern in the Type something field, then click the send icon.
4. Click on I still need a human.
5. Choose the Get help from a human button.
6. Select Chat with us or Have us call you.

You can check out our support hours to know their availability.

Additionally, I've added these articles that'll help you protect your business account and data from fraud:

• Data Security and Fraud Prevention
• Identify Suspicious Activity, Phishing Scams, and Potential Fraud

We appreciate your understanding on this matter. Please know that we're determined to get this resolved.

This does not answer my question just gives me generic answers. I have clearly stated a question, was there a security breach with QuickBooks? My card was fraudulently used multiple times. Then when I tried to dispute or reverse transactions I was told there was no guarantee and that it would go in my favor and I had to wait a minimum of two weeks. Every other bank I have works much faster and funds the account while investigated. Sadly, QuickBooks has done ether of those.

Hello there, JAY109.

To keep all of your financial data private and protected, we use advanced, industry-recognized security safeguards. Along with safeguarding the data you provide with us, we also actively look for fraud and scams that can target our clients. Our security notices are regularly updated with information about any fake Intuit emails or customer support scams, as well as advice on how to deal with them.

In regard to your concern about the security breach, you can reach out to your financial institution (FI) for further assistance. They have access to all of your account's transactions as well as who used your credit card.

If the dispute takes longer than two weeks to resolve, I recommend contacting our QuickBooks Payments Team. One of our specialists will go over the status of the transaction in detail.

Here's an article that provides detailed information on how to manage disputes and process a retrieval request: Handle chargebacks and retrieval requests for QuickBooks Payments.

I also included a link to our online resources for future reference. This page covers topics such as installing and syncing apps, tracking employee time, and setting up online payments.

Thank you for giving me the opportunity to help. If you have other payment-related concerns or issues, click the Reply button and enter your comments in the field box. I'm always willing to help in any way I can. Have a good one and stay safe.

Again. I have asked a very simple question. Has your company encountered a security breach providing your customers private data? That is the only way my card info would have been used. 

Secondly with any bank I have ever had they release the funds back into my account that were fraudulent the same day. Why do you have such a long wait time? You allow someone to steal my info from your company, use my card and then I have to wait weeks for the money to potentially even be refunded. 

This is not typical of any major bank so I would assume your bank is not equal to other major banks?

Hi there, JAY109.

I understand the urgency of getting the funds back after a fraudulent incident at your bank.

There isn't a report about security breach in our system. We know scammers and hackers have been using the same tricks to try and commit small business fraud for years, it’s important to recognize critical warning signs of identity theft and financial fraud to protect your business and all of its data from falling into the wrong hands.

And, I want to make sure your case is reported to our Risk Management Team. If you've already contacted our QuickBooks Live Team and reported this, they'll send you an email for updates.

If not, please contact our QuickBooks Online Team so they can forward this case to our Risk Management Team. They can provide the steps needed to prevent this fraud from happening again.

Also, you may check out our online security tips to help you keep your information safe. Or visit this article to know how QuickBooks protect your data: Learn how to recognize official Intuit correspondence and websites.

I appreciate your patience while we look into this issue. Take care always!

Yes or no. Has your company had a data breach?

Thanks for getting back to this thread, @JAY109.

Rest assured that there isn't any data breach incident. We're committed to keeping our customers' information secure. Also, we rely on advanced, industry-recognized security safeguards to keep all of your financial data private and protected. 

If you encounter any fraudulent activities at your bank, we're willing to check this issue and ensure your data's security. To report this case, you can notify our Risk Management Team or contact our support team directly, as suggested by my colleague above. 

Additionally, let me share these links that involve ideas on how to spot fraudulent activities and how we keep your data safe:

• Our Security practices
• Identify suspicious activity, phishing scams, and potential fraud

Feel free to report back here if you have further questions about the security of your data in QuickBooks. I'm always around to help. Keep safe!