Cheque Fraud

Fraudulent cheque writing has become a profitable way of life for many criminals. Poor cheque cashing policies and carelessness increase the risk of loss.

Before accepting a cheque:

  • Do not let anyone rush you
  • Insist upon cheques being endorsed in your presence and compare the signature with those presented on their I.D.
  • Make sure the cheque is properly dated and completed
  • Do not accept cheques showing any signs of alteration
  • Do-not accept post-dated cheques and never agree to hold a cheque until a future date
  • Do not accept second party cheques
  • Do not accept cheques for an amount greater than the purchase
  • Do not accept company cheques automatically, even though they look "official", call the business for verification when in doubt
  • Be careful of cheques not drawn on local banks by local payees
  • Be careful cashing cheques after banking hours
  • Be careful cashing counter cheques (cheques with no preprinted information such as name, address, or account number)

To reduce losses from bad cheques:

  • Unless you are satisfied that the cheque is good, do not accept it, you are under no obligation to accept any cheque
  • Establish a firm cheque-cashing policy and advertise it
  • Keep blank cheques, bank statements and other records in a safe place

If a cheque is forged or stolen:

  • Try to delay the passer but do not apprehend, call the police immediately
  • If the criminal flees, take note of their physical characteristics, make of vehicle and licence number
  • Preserve any evidence and be willing to prosecute
  • Try to hold onto the cheque for the police

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