Check Fraud - How does it affect you?

Check fraud is something that affects business owners as well as homeowners. The National Check Fraud Center has reported that check fraud and counterfeiting are one of the fastest growing problems plaguing the U.S. financial system. It is a problem that continues to grow.

The industry estimated that 75 percent of transactions between businesses are still made by check. "More than 500 million checks are forged annually in the U.S., with losses totaling more than $10 billion." (Source: Ernst & Young)

Homeowners can become victims when holding a yard sale or selling a vehicle. Many of these criminals will target homeowners because at the time of the transaction the homeowner may not be able to verify whether or not there are sufficient funds to cover the check. By the time they do, the criminal is nowhere to be found. Homeowners, if you are planning on having a yard sale, best practice is to take cash only and not a check. If you are selling a car, a big dollar transaction, again only accept cash or meet the buyer at their bank branches. This way you are guaranteed that payment will be good.

Always Remember to C-H-E-C-K
Establish a proactive check acceptance policy by following these guidelines:

C - Card the Check Writer
Request current Driver's License, expiration and date of birth when check is passed in person.

H - Handle the Check
Make sure the check has not been altered, taped, washed or typed over.

E - Examine the Pre-printed Information
Don't take a check that isn't pre-printed. Look for low check numbers, bad routing codes, and local addresses.

C - Confirm the Handwritten Information!
Does the signature on the check look similar to the signature on the identification presented?

K - Keep Your Procedures Consistent
Post them in clear view.  Make sure you follow the same steps each time you are presented with a check in payment for services or products.