The Bank Slate


Five Star Bank in NY disclosed deposit-related fraud

Financial Institutions in Warsaw, N.Y., disclosed a case of fraudulent activity.

The $6.2 billion-asset parent of Five Star Bank said in a regulatory filing that it discovered an issue with deposit transactions that took place over “several business days” earlier this month. The transactions involved an in-market business customer.

The company estimated that its potential exposure could be up to $18.9 million, though it could be lower if it recovers the funds. The bank plans to pursue all available sources of recovery to mitigate any loss.

Financial Institutions said it is working with law enforcement authorities, adding that it believes the incident is an isolated occurrence involving a single, deposit-only business relationship.

Leave a Reply

Your email address will not be published. Required fields are marked *