Monetary transactions by means of an instrument called ‘cheque' have been in practice since a long time now. With the advent of electronic payment systems, there have been many mode of payments made available to the customer. But payment through cheques still continues to be a major mode of transaction for most people.
Fraudulent cases by hackers and spammers are on a rapid rise these days and cheque frauds lag no behind. Particularly because of the fact that customers still prefer using cheques, one of the major reasons being that it offers a tangible record of the transaction, cheque frauds are also increasing.
Types of cheque frauds:
Fraud in a cheque is mainly done when the cheque is
Altered cheques are those which had been initially issued properly by the account holder but later on some items (like name of payee or amount) were altered.
Counterfeited cheques are those which have been illegitimately written and signed by somebody other than the account holder.
Forged cheques are those in which the signature of the account holder is forged by some other party.
Tips to prevent cheque frauds while dealing with individuals/organizations
In case of self/bearer cheques, the customer is advised to be careful while writing the amount on the cheque. The most common mistake people commit unknowingly is leaving space on the left side while mentioning the amount on the cheque which makes their cheque vulnerable to fraudulent activities.
Cunning fraudsters may make use of this empty space and add an extra digit before the original amount. To prevent this, it is advised that the customer write the amount from the extreme left in the space provided. The same advice must be considered while writing the ‘amount in words.'