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Tip of the Day - 5 Popular Forms of Check Fraud

Filed under: Tip of the Day

Frank AbagnaleI remember when I first saw the movie Catch Me If You Can, the story about the world’s most prolific check forger Frank Abagnale, and thought that he was just a crook ahead of his time, taking advantage of a system that just wasn’t technologically capable of keeping up with him. Surely, I thought, things were different in the new millennium, right?

Then I read this month’s Counselor magazine article on check fraud.

Not only was I wrong, but it turns out that millions of Americans are victims of check fraud each year. Millions! But thanks to a new generation of pens — like Sanford’s uni-ball 107 — it’s becoming a lot easier to combat this nightmarish crime. If you have a few minutes, take the time to read this great article called “Fraud Fighters” - definitely worth the time to read. And in the meantime, here are 5 forms of check fraud:

  1. Check-Washing. Here, a legitimate check is altered, changing the name of the payee and often increasing the amount. Ink on checks is easily erased with common chemicals like acetone. However, some pens – which are available in the promotional market – can prevent this kind of fraud. 
  2. Forged Signatures. This is the easiest form of check fraud because banks don’t often verify signatures until a problem arises that requires them to assign liability.
  3. Forged Endorsements. This occurs when someone steals a check written to someone else.
  4. Counterfeit Checks. These can be created with a desktop scanner and printer, creating a way for a thief to pay himself.
  5. Check Kiting. This process usually involves two bank accounts. Money is transferred back and forth so the accounts can appear to contain a balance, which can then be withdrawn.

Source: Robert Siciliano, Identity Theft Expert


1 Comment

  1. Payroll Check Scam – Six Facing Felonies Says:

    [...] Tip of the Day – 5 Popular Forms of Check Fraud : ASICentral Team … [...]

    Thursday September 29, 2011

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