Check Fraud

Businesses can take an active role in reducing criminal activity in and around their property by participating in a variety of crime prevention initiatives.

• Forms of Check Fraud
  
• Check Acceptance Precautions
  
• Check Acceptance Procedures
  
• Refusing a Check

Forms of Check Fraud:

• Forged signatures: legitimate blank checks with imitation of the payer's signature.
  
• Forged Endorsements: often involves the use of a stolen check, which is then endorsed and cashed or deposited by someone other than the payee.
  
• Counterfeit Checks: fastest growing form of check fraud
  
• Altered Checks: information on legitimate check, such as payee or check amount changed to benefit perpetrator.
  
• Check Kiting: the process of depositing a check in one account into a second bank account without the sufficient funds to cover it.

Check Acceptance Precautions:

• Do not be afraid to ask about the check you are asked to accept, it is your money in one form or another) that is involved.
  
• When accepting a check from a stranger be sure and establish positive identification by means of a DRIVER'S LICENSE and a second identification such as a credit card.
  
• Do not rely on lodge cards, social security cards, auto licenses, etc. These can be forged.
  
• Do not accept checks showing any alterations.
  
• Do not accept checks written in pencil.
  
• Always check the signature on the check with the signature on the identification card-make sure they match.
  
• Always make sure the person signs the check in your presence.
  
• As a general rule do not accept checks from out of state.
  
• Refuse all checks signed with a rubber stamp.
  
• Do not accept checks from juveniles.
  
  
  

Check Acceptance Procedures:

• Obtain two forms of identification, a driver's license or identification card with photo and a credit card.
  
• Write the number of the identification used on the check.
  
• Have whoever accepts the check place their name or initials on the check. In order to prosecute on a bad check the person who accepted the check has to be identified.
  
• Have the person sign the check in your presence.
  
• Make sure the check is not post dated.
  
• Do not accept a two party check. They cannot be prosecuted.
  
• Only the person who is named on the check can sign the check.

 

Refusing a Check:

• Merchants are not obligated to take checks.
  
• Never accept a check from a person that appears intoxicated.
  
• Never accept a check if the person acts suspiciously.
  
• Never discriminate when refusing a check.
  
• Never accept a check that is dated in advance.