How To Avoid Check Fraud

Check fraud is a serious threat to many businesses. Accepting a fraudulent check is a sure way of losing money, and it is now easier than ever for criminals to create fake checks, due to the rapid advances in computer and printing technology. It is estimated that the retail industry is now losing 12 billion dollars a year because of check fraud.

In order to avoid falling victim to check fraud, it is important to be able to recognize a fake or fraudulent check. This will protect against crimes involving fake checks. Genuine checks may sometimes be used to commit check fraud, so it is important to ask for identification from the customer as well as making sure that they are handing over a real check. Insufficient check fraud, or a bounced check, may be unintentional. As long as the customer’s contact details have been recorded, it may be possible to obtain payment from them.

An acceptable form of ID should include the customer’s name, address and phone number. These details should match those which are imprinted on their check. The expiry date on the ID should also be checked. Details from the ID, such as the issuing state or driver’s license number, should be written on the back of the check. Credit card numbers should not be recorded, as this is illegal in some states.

The check should be examined to make sure that all the necessary details have been filled in correctly, including the date, the written and numerical figures and the signature. A genuine check should include all of the required information, printed in the same ink. There should be no signs of tampering, such as different types of ink or font, or stains and discoloration. The MICR numbers should match the check number and bank details printed elsewhere on the check, and should be printed in ink that is dull not shiny. The paper should be of good quality and should feel like a normal check, and it should be perforated in the appropriate place.

The check number can be a guide to the authenticity of a check. Many fraudulent checks have low numbers, although this is not always the case and a low number does not always indicate fraud. In some cases, all of the checks in a fake checkbook will have the same check number.

As well as being vigilant about receiving fraudulent checks, it is also important to avoid writing checks that could easily be tampered with. Every part of the check should be filled out clearly, without leaving room for additional figures or letters to be added in. The check should be addressed to a named recipient.