Consumer And Corporate Check Counterfeiting Is Increasing

A diverse array of criminal activities falls under the umbrella term check fraud, all of them connected to illegal modification or use of checks. Among these, the most frequently seen are forgeries, kiting (as seen in the movie Catch Me If You Can), and alterations of names and addresses.

Both individuals as well as businesses have to watch out for this kind of fraud. Businesses have to be careful both as illegal checks are issued against them by fake employees, and illegal checks are handed to them as payment. Individuals suffer mostly from stolen blank checks which allow criminals access to bank account and routing numbers.

Businesses can actively work to reduce check fraud by putting in safe-guards and checks. For instance, they should reduce the number of people who sign off on checks to minimize exploitation of loop holes. They should also ask the bank to limit dollar amounts for ceilings on written checks.

Individuals have another responsibility to take steps that prevent the theft of blank checks as well as canceled checks. Unused ones must have the word void written over the front. Used ones should be shredded with a secure shredding tool. Leaving behind remnants makes it easier for thieves to forge a check.

Use of a checkbook register and other record keeping devices will keep you alert of suspicious activity that occurs in the checking account. Although it is possible to wait a month in between bank statements, or to log onto your banking web page, a personal tool is useful to detect errors in the bank records.

In addition, people substitute their checkbook registers with checkbook software. This is software that has entry forms, and databases for keeping track of month income and expenses. The advantage is that the electronic records are portable and easy to display.

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