Keep A Check On Your Cheques

Even in an age of computers, there are those who would rather pay by a bank draft or a cheque. Online banking has not been able to completely win over the conservative clients and they continue to fall a prey to what is commonly known as cheque fraud. Cheque fraud cases can be of the following types:

• Clone cheques are easily produced today courtesy the latest in software technology and high-end gadgets like sophisticated copiers and printers.
• Cheques may also be stolen and the signatures forged.
• A cheque issued by an account holder may be intercepted and the amount written and the beneficiary’s name altered suitably.
• Sometimes cheques remain of accounts that are no longer functional which should be destroyed, else can be forged.
• Often a fraudster may have access to an individual’s personal details and may even open an account in his name and thereafter steal money from other businesses in the name of that account holder.
• A false cheque may be issued by a partner showing a sum greater than what is required. The fraudster then asks for the change justifying the reason for transferring the excess amount and the bank will inevitably decline such a cheque and the victim ends up losing the sum given in exchange.

Some important cheque fraud prevention advice that one can abide by after writing a cheque:

1. No gaps are to be left in between the words.
2. A line should be drawn after the amount, the name and anywhere else where there is substantial empty space.
3. Complete and accurate information is to be written down.
4. Transfer of cheque is to be prohibited.
5. It is not a good idea to pre-sign cheques.
6. Cheque books should not be left unattended in glove boxes of cars for example.
7. On closing an account, all remaining cheques are to be destroyed with immediate effect.
8. It is better to make use of a ball-point pen when writing cheques instead of those that have erasable inks.
9. Any cheque that the account holder does not wish to be encashed must be cancelled.
10. Cheque books are to be stored separate from credit cards and other papers bearing signature of the holder.
11. Paid cheques returned with statements are to be kept hidden since fraudsters try to reuse them.
12. The account holder must review the cheques issued every month.
13. .A stolen cheque book must be reported immediately.
14. .Cheques are to be ideally placed in dark-colored envelopes in case they have to be posted.