KeyCorp told regulators Tuesday that it discovered fraudulent activity that could cost the Cleveland-based lender up to $90 million.
According to a filing, around July 9 the parent company of KeyBank N.A. found fraudulent activity "associated with transactions conducted in the third quarter of 2019 by a business customer of KeyBank, a subsidiary of the company."
The customer in question, according to CNBC, is Interlogic Outsourcing, a payrolls processing company based in Elkhart, Indiana, according to a lawsuit.
KeyCorp said it continues to investigate the financial impact to the company. The current $90 million estimate, net of tax, could be lower and depends on whether or not the company is able to recover the funds, the filing said.
The bank added that it believes this was an “isolated” incident based on its “review of the circumstances of the fraudulent activity” and that it will “pursue all available sources” to mitigate a potential loss.
