Forms of check fraud:
- FORGED SIGNATURES legitimate blank checks with an imitation of the payor signature;
- FORGED ENDORSEMENTS often invloves the use of a stolen check, which is then endorsed and cashed or deposited by someone other than the payee;
- COUNTERFEIT CHECKS due to the advancement in color copying and desktop publishing capabilities, this is the fastest-growing source of fraudulent checks today;
- ALTERED CHECKS information on a legitimate check, such as payee or check amount, changed to benefit the perpetrator;
- CHECK KITING the process of depositing a check from one bank account into a second bank account without the sufficient funds to cover it.
Preventing check fraud:
We want to help protect you against check fraud. Mind these following points to help make it more difficult for criminals to target you:
- Closely examine account statements in a timely manner because under the Uniform Commercial Code (UCC), Forcht Bank is not solely responsible for check fraud.
- Report a forged check immediately to the Bank.
- Report lost or stolen checks immediately to the Bank; the Bank will assist in notifying third-party databases with respect to the lost or stolen checks.
- Close unused accounts.
- Keep all checks and statements in a secure place.
- Reorder checks only through the financial institution. Buying checks through mail order houses is an invitation for potential fraud.
- Do not disclose account numbers to anyone.
- Do not have driver's license or social security numbers preprinted on checks.
- Verify that a check order is complete when received.
- Destroy checks from closed accounts.