QDOS, Inc. v. Signature Fin., LLC

*993A bank or merchant has a common law duty, when conducting a transaction with its customer that also involves a third party, (1) not to ignore "red flags" or "suspicious"

*871circumstances that may indicate the third party is being defrauded, and in that instance (2) not to proceed with the transaction without doing some investigation. (E.g., *994Sun 'n Sand, Inc. v. United California Bank (1978) 21 Cal.3d 671, 693, 148 Cal.Rptr. 329, 582 P.2d 920 ( Sun 'n Sand ), superseded on other grounds by Cal. U. Com. Code, § 3404 ; Burns v. Neiman Marcus Group, Inc. (2009) 173 Cal.App.4th 479, 489, 93…