ArticlesReader.com Menu
Newest Articles
Most Viewed Articles
ArticlesReader.com RSS
Submit Article
Login
Signup
Search the articles

Articles Main Categories
Advice
Animals
Automobiles
Business
Career
Communications
Computer Programming
Computers
Entertainment
Environment
Family
Fashion
Finance
Food
Health & Medical
Home & Garden
Humor
Internet Business
Internet Marketing
Legal
Leisure & Recreation
Marketing
Other
Politics
Reference & Education
Religion
Self Improvement
Sports
Technology & Science
Travel
Writing
Subscribe
Receive alert message from us when new articles submitted to our site for free.

Enter your name

Enter your email

Syndicate

















Related Products
Home::Legal

CHECK FRAUD

Author : Les C. Cseh
YOU COULD BE ON THE HOOK!

Did you know that the UCC (Uniform Commercial Code) regulations
place responsibility for forgery losses partially on bank
customers, rather than solely on the banks? But in addition to
this exposure, there can be significant expenses and lost time
investigating the crime, not to mention damage to your
credibility and reputation.

Your only defence is to show that you have taken due diligence.
One way to demonstrate this is by implementing careful practices
regarding your checks. Another is to use checks with well
implemented security features.

HOW BAD IS THE PROBLEM?

The problem is so serious that the banks don't like to reveal the
extent of the problem. Estimates range from hundreds of millions
to 10 billion dollars annually.

In 1991, the FBI tracked over 26,000 cases, but this is just the
tip of the iceberg, because the FBI mostly focuses on cases where
the amount exceeds $100,000. Just one example comes from The
Green Sheet (a publication to the Financial Services Industry),
reporting an incident where a family had allegedly stolen more
than $1 million from area merchants since 1993 by writing checks
on closed and non-existent accounts at 11 financial institutions
in Indiana and Chicago under 25 different names.

In just 4 years, Northern Trust Bank has detected more than 3
million dollars worth of counterfeit checks.

WHAT KIND OF THINGS DO CRIMINALS LOOK FOR?

It is an endless list, but here are some of the types of things
that someone looking to counterfeit or tamper might look for:

* High volume bank accounts where a fraudulent check can easily
slip through.
* Checks that are easy to reproduce using a color copier.
* Checks that are easy to tamper with.
* Easy access to checkbook or check stock.

WHAT CAN I DO TO PROTECT MYSELF?

By protection, I mean reducing the chance of someone
counterfeiting or altering your checks, as well as reducing your
liability when it occurs.

Be aware that is is impossible to prevent fraud. But you can
significantly minimize the risk using a two-prong approach. It is
critical that good procedures related to your check processing
are put in place, and that you use a check that is difficult to
counterfeit or alter (see sidebar).

* Reconcile your bank statement promptly. Now that bank
statements are available online, you can do this as frequently as
you feel is necessary for your situation.
* Restrict access to your checkbook/check stock. Ensure that only
trusted staff that need access have it.
* Audit your checks. However, this can be difficult because often
checks are removed from the bottom or middle of the book or
stack.
* Use a custom design. While this isn't an affordable option for
many businesses, look into it. The next best thing is to ensure
that your check supplier uses comprehensive security features.
Remember though that a custom design is not a substitue for
security features.
* Advise your bank branches' officials of the security features
in your checks .. in person or in writing (and keep a copy of the
letter on file!).
* If you issue a large number of checks, particularly with a low
amount (eg. rebate checks), open a separate account and alert the
bank staff of an upper limit for that account.

THE BOTTOM LINE

Don't take unnecessary chances. The more security you have
through procedures and choice of check form, the less likely that
someone will tamper with your checks.


About the Author

Les C. Cseh is the owner of ASAP Checks, Forms & Supplies, a
check printer operating out of Alexandria Bay, NY and Perth Road,
Ontario. He can be reached
at info@asapchecks.com and at 888-85-CHECK. In addition to a
variety of secure checks, the ASAP web site
(http://www.asapchecks.com?jayde offers a non-commercial section
related to check processing issues called the MICR Repository.

Spam emails More free articles

Related articles


  1. Litigation Funding Is Here To Stay
  2. Why Probate?
  3. Deeds of Variation - Are They Justified?
  4. School Bus Mishaps
  5. Cases Involving Defective Products
  6. You and the Tort Law: A Guide
  7. What To Do If Your Disability Case is Denied
  8. Quadriplegia: Victims Seeking Legal Help
  9. Injuries Sustained from Accidents on Boats
  10. Set Aside Foreclosure and Decree and Motion for New Trial
  11. Contesting a Will or a Trust. Can it Be Done?
  12. Chapter 13 Bankruptcy Basics
  13. The Revokable Trust: Is it Really Revocable?
  14. Innovators: How To Turn Your Dreams Into Reality
  15. How to Patent Your Invention
  16. Virginia Workers Compensation for the Injured Worker
  17. The Secret To Protecting Your Business Assets
  18. Resolve Disputes With Your Partners Before They Happen
  19. The Business of Identity Theft
  20. How to Respond After Identity Theft Occurs
  21. Five Steps To Full Compensation For Your Personal Injury Claim
  22. Why Even A Simple Contract Can Save Your Bacon
  23. Information Linking Vioxx to Workers Compensation
  24. Workers Compensation - Know Your Rights
  25. Why Your Business Needs a Dispute Resolution Procedure
More related feeds
Check Fraud Ring Uncovered
Tallahassee Police arrest 3 in an elaborate scheme.

Internet Fraud: Know Your Enemy, It’s Closer Than You Think
According to the FBI, “Internet auction fraud was by far the most reported offense, comprising 44.9% of referred complaints. Non-delivered merchandise and/or payment accounted for 19.0% of complaints. Check fraud made up 4.9% of ...

check/fraud
If a bad check was cashed on 11-19-1997 and the person liable for doing so goes back to Fl. can he/she be arrested for not paying?... (Replies: 1)

Crime IS a Laughing Matter - Do's and Dont's of Check Fraud
Look, I ’m gonna write this article today about check fraud as a public service to all you Internet nerds who think slipping the bank a mickey is gonna lead you on the fast track to riches...

Parascript takes check fraud software to Middle East -- 04:32:18 ...
... 2008 -- Parascript, LLC, the image analysis and pattern recognition technology provider, today announced that its automated signature verification software has been implemented in the United Arab Emirates to prevent check fraud. ...

ATM Fraud Cardiff Rail Station - Check your statements.
If so CHECK YOUR STATEMENTS and Keep a close eye on them. "Customers who used a cash machine at Cardiff's main railway station are being warned to destroy their cards after a card skimming device was found." BBC News Item (click here).

Check Fraud Nets 4 Arrests
Four people from Miami were arrested on felony charges Monday after deputies say they tried to cash fraudulent checks at an East Naples Publix supermarket. Kerlyne Philippe, 21; Jefte Jaques, 24; Antonio Simmons, 23; and Franckly Desir, ...

ATM Fraud Cardiff Rail Station - Check your statements.
Forum: Budgeting & Current Accounts Posted By: James Post Time: 19-07-2008 at 1:17 PM.

Be Alert for Check-Fraud Scams
In one case, an individual was conned out of $6000 in a check-fraud scam. Another individual received a suspicious check and brought it into the Legal Assistance Office; the check turned out to be fraudulent and the person avoided being ...

PREVENT-CHECK-FRAUD.COM
Auction Type: Auction, Auction End Time: 7/12/2008 10:36:00 AM(MST), Asking Price/Current Bid: $10.00, Number of Bids: 0, Description: , Traffic: 4.

 

 

© 2007 articlesreader.com - All Rights Reserved