Wells Fargo's stock price fell sharply by 5.01% during intraday trading on Tuesday, as the bank faces increased scrutiny over its handling of check fraud cases.

The decline comes amid reports that Wells Fargo is under investigation for check fraud cases involving elderly and vulnerable customers. According to reports, some affected customers were initially denied reimbursement because their claims were submitted after the bank's internal reporting deadlines of 30 to 60 days. The situation gained public attention after at least one high-profile case was later reimbursed, raising questions about the consistency and fairness of the bank's fraud policies.

This scrutiny highlights potential risks for the bank, including possible legal or regulatory action if fraud-handling practices are judged too rigid for vulnerable customers. The news also brings reputational risk, which could impact customer trust and potentially lead to higher compliance costs if policies are tightened. For investors, this type of customer protection story can be as important as traditional financial metrics when assessing operational risk and brand trust.