Wednesday, June 24, 2009

CHECK FRAUD - Let Us Count The Ways

A Primer On Check Fraud

Noting the rise of check fraud, here's how it's being done:

Forged Signatures - Legitimate checks with illegitimate signature. Banks don’t usually verify signatures until there is a problem and need to assign liability.

Forged Endorsements - Someone has stolen your check and cashed it. Consumers need to verify their bank statements regularly.

Counterfeit Checks - Shred old checks so they cannot be scanned and used again.

Check Floating - Never deposit a check for someone else on the grounds that you then pay him/her only after the check clears. Banks credit deposits before clearance, and you are responsible for any sums withdrawn from your account.

Check Washing - Altering a legitimate check by changing the name it is payable to. Usually involves checks stolen in the mail.



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