Cheque Fraud

Be aware of the different types of fraudulent cheque activities. 
 

• Cloned cheques are created to commit fraud. A cloned cheque is often an exact replica of the original, even down to the cheque number. Although they appear to be legitimate, a closer look at the details (like signatures and drawer details) reveals the fraud beneath.
• Changed cheques are legitimately issued by the registered accountholder, but a fraudster will intercept the cheque and make changes. They will:
  • create a new payee name;
  • change the payee name, eg 'Edgars' to 'WEdgars Smith'; and
  • change the value of the cheque with pen strokes.

While all the original information remains on the cheque, it changed completely and is often disguised beneath a 'Not transferable/Not negotiable' stamp.
 

• Stolen cheques are issued legitimately by the registered accountholder, but stolen and cashed by fraudsters. Fraudsters tend to steal cheques in the post and pay it into a fraudulent account in the payee's name.
• Forged cheques come about when a legitimate cheque or complete chequebook is lost or stolen. Fraudsters who get their hands on it then complete a cheque and signs it on behalf of the drawer. The signature is always forged and it may or may not resemble the legitimate signature specimens.

When you accept a cheque as means of payment:

• Make sure the handwriting is consistent;
• Check for any spelling errors on the printed areas of the cheque;
• Make sure that the stamps are not concealing any changes;
• Make sure that the same pen was used to complete the cheque;
• Check for any visible changes;
• Be aware of negative printing, ie white lettering used on a background to conceal unauthorised changes; and
• Make sure funds are cleared before you release goods;
• Write the payee details in full, leaving no space in front or after the payee's name;
• Write the amount in figures and the word 'only' to avoid extra figures being added
  
• Cancel any unused space by drawing lines through it;
• Make sure you use the correct markings on a cheque. When you cross a cheque, or mark it 'Not transferable', that cheque can only be accepted in an account with the payee's name. However, if marked 'Not negotiable' this can be endorsed on the back by the original payee and  transferred to someone else;
• Never sign a blank cheque and don't issue cash cheques; and
• Do not post cheques – rather transfer funds electronically.