01 Aug 2024
Checks, trusty yet potentially vulnerable slips of paper to send money, remain a relevant payment method in many situations. However, the inherent nature of a physical document makes them susceptible to a crime known as ‘forgery.’
Forgery occurs when someone alters or replicates a check to steal money from your account. While not as joint as other forms of financial fraud, check forgery can result in significant economic losses.
This comprehensive guide outlines essential tips to protect yourself from check forgery, empowering you to write checks confidently.
While less frequent than other financial scams, check forgery can result in significant financial losses. Here's a deeper dive into the different ways checks can be forged:
This is the most well-known type of check forgery. A perpetrator acquires a stolen check or a blank check from your checkbook. They then attempt to replicate your signature, mimicking how you sign checks.
A successful signature forgery allows the fraudster to cash the check or deposit it into their account, draining funds from yours.
This type of forgery doesn't involve replicating your signature but rather altering the amount on a legitimate check. There are two main ways this can occur:
In this scheme, the fraudster uses a chemical solution to wash away the original amount written on the check, leaving a faint outline.
They can then rewrite a higher amount on the check, significantly inflating the intended payment. Forged checks washed with chemicals might appear slightly faded or blurry but only sometimes noticeably tampered with.
This method involves a more subtle alteration. The perpetrator might carefully add a digit to the numerical amount on the check, or they might subtly change a written amount (e.g., turning "50" into "500").
These alterations can be difficult to detect, especially if the check writer needs to be more meticulous in the first place.
This type of forgery targets the "payee" line on the check, which specifies the intended recipient of the funds. The fraudster might steal a legitimate check or use a blank check.
They then alter the payee line, replacing your intended recipient's name with their own. By forging the payee line, the perpetrator aims to divert the check's funds into their account.
You can ensure the safety of your check by following the below tips:
Store your checkbook and unused checks in a safe and secure location, preferably a locked drawer or a home safe. Don't leave checks unattended or in places that are accessible to everyone.
Maintain a clear and organized checkbook register. Record every issued check, including the check number, date, payee, and amount. This detailed recordkeeping allows for easy reconciliation and helps identify discrepancies that might indicate forgery.
Frequently review your bank statements for any suspicious activity. Pay close attention to debits that don't match your check register entries. Early detection of forged checks can minimize potential losses.
Avoid signing blank checks or prewriting checks with the amount left empty. These practices allow fraudsters to manipulate the check for their gain.
Consider using checks with built-in security features, such as watermarks, microprinting, or chemical protection against alterations. These features can deter forgery attempts and make it more challenging for fraudsters to modify the check.
Checks, despite their simplicity of money transfer, require a certain level of caution to minimize the risk of forgery or errors. Here are some essential precautions to take while writing checks:
Opt for a gel pen with black or blue ink when writing checks. Gel ink dries quickly and is more resistant to smudging or erasing than other pen types.
This resistance makes it more challenging for fraudsters to alter the information on the check after it's been written. Avoid using pencils or erasable ink, as these can be easily manipulated.
Fill out all check details clearly and thoroughly. Leave no blank spaces that a forger might exploit. Here's a breakdown of each field and how to handle it carefully:
Write the recipient's full legal name clearly and accurately. Don't use nicknames or abbreviations. For businesses, ensure you have the correct legal business name.
A mismatch between the payee's name on the check and the intended recipient's name can cause delays or prevent the check from being cashed.
Spell out the exact amount of the check-in in clear and concise language. For example, for a check of $125.75, write "One Hundred Twenty-Five and 75/100 Dollars." Writing out the amount provides a secondary verification of the intended payment and acts as a red flag if someone attempts to alter the numerical amount.
Write the exact amount of the check in numerals, using proper decimal placement for cents. For instance, for $125.75, write "125.75." Ensure the numerical amount precisely matches the written amount. Any discrepancies can raise suspicion during processing.
Please fill in the current date accurately. Postdated checks (dated for a future date) are generally not recommended, as not all merchants or banks might accept them.
If you make a mistake while writing a check, don't erase or attempt to correct it. Erased or altered checks can be seen as suspicious and might be rejected. Instead, void the check clearly by writing "VOID" in large, bold letters across the front. This makes it evident that the check is no longer valid. Then, start with a fresh check and fill out the information correctly.
Before signing the check, double-check all the information you've filled in. Ensure the payee name, amount (written and numerical), and date are accurate and match your intentions.
Your signature on the check signifies authorization for the payment. By carefully reviewing the details before signing, you minimize the risk of authorizing a fraudulent or erroneous payment.
While more common than once, check protectors are an additional security measure. A check protector is a device that imprints a security pattern or design onto the blank areas of the check, making it more challenging to alter the information after it's been written. While not foolproof, check protectors can deter casual forgery attempts.
Utilize online money transfer as a potential solution. While checks can be helpful, online money transfers are gaining significant traction due to their enhanced security features and convenience.
As an alternative to checks, reputable online money transfer services like the recently updated ACE app offer a secure way to send money directly to a recipient's bank account.
The ACE app update boasts advanced security features and user-friendly functionality, making online money transfers potentially less susceptible to forgery attempts compared to traditional checks.
Adopting these essential tips and remaining vigilant can significantly reduce the risk of check forgery. Safe storage, meticulous recordkeeping, and cautious check-writing practices are crucial.
By remaining informed and considering modern solutions, you can ensure your hard-earned money remains safe and secure.
In the ever-evolving financial landscape, sending money online through services like the improved ACE app can provide an even more secure and convenient alternative.
There are three main types: signature forgery (copying your signature), amount forgery (altering the check amount), and payee forgery (changing the recipient's name).
Store checks securely, keep a checkbook register, review bank statements regularly, avoid signing blank checks, and use checks with security features.
Contact your bank immediately, report the forgery to the police, and keep copies of relevant documents (forged check, bank statement).
Yes, gel ink is harder to erase or alter compared to other pen types, making it a more secure choice.
Online money transfers through reputable services can offer enhanced security features and potentially less risk of forgery than traditional checks. For a secure option, consider the recently updated ACE app.
