Check fraud is a large challenge many businesses and individuals are facing today. Writing checks is convenient and it can be helpful to create a paper trail. There are many perks to writing checks, however, if a check falls into the wrong hands it can be tampered with. Learning about the types of check fraud and how to help prevent it can help you protect your money.
What is Check Fraud?
Check Fraud is the use of paper or digital checks to illegally obtain money. Some examples are forging a signature on a stolen check, altering a check’s payee or amount, or using a check drawn on a closed account.
3 Categories of Check Fraud
Altered
Fraudsters can alter real checks, that have already been filled out and signed, for their benefit. They can do so by using a substance like rubbing alcohol that can erase the ink used and then change either the payee and/or amount on the check.
Sometimes it can be as easy as utilizing the blank space on a check. If the check is made out to a person with a shorter name, fraudsters can add a second name or they can edit the amount by adding an extra number.
Forged
Forged checks are when fraudsters steal a legitimate check, but fake the account owner’s signature to make it look like the check has been authorized. A check can also be considered forged if the check value amount and/or payee section has been completed by the fraudster.
Counterfeit
Fraudsters are known to create fake checks that appear genuine. A large number of counterfeit checks are made using a desktop software and high-quality printers. The checks are typically made with stolen account information then the fraudster can write to themselves and deposit them or use them to pay someone else.
Tips to Prevent Check Fraud
Turn On Account Alerts
Setting up alerts on your account can give you some peace of mind when it comes to check fraud. Account Alerts can notify you of suspicious or unusual activity on your account. Most alerts can be customized so you can also use them to stay informed about your spending, which can also help identify potential fraud.
Utilize Online Bill Pay
Online Bill Pay allows you to make payments online without having to write a physical check. This way you can avoid sending your check and personal information through the postal systems where fraudsters have a better chance of accessing it. Online bill pay also typically encrypts your information making it harder for fraudsters to access and protecting you from other potential scams.
Write High Security Checks
When writing keep in mind the space being left in sections of the check and what type of writing utensil you use. Make sure to use black ink, when possible, use a gel ink pen. Gel ink is harder for fraudsters to remove. To avoid blank spaces, you can draw a line after the amount or name you’ve written, this will make the check harder to alter.
With check crimes on the rise, it is important to stay vigilant and keep up with latest information. Being in the know can help you avoid becoming a victim of check fraud.
As a reminder, Penn East will never ask a member to share their personal and confidential information by reaching out with an email, phone, text, or social media message. If you ever feel that you have been a victim of a scam or fraud, please call our Member Support Call Center immediately at (570) 342-2720
To learn more, visit our News Hub and check out our posts on Safeguarding Your Finances and Protect Yourself From Fraud.
About Penn East Federal Credit Union
“Have a positive impact on our members, our community, and each other.” That is the common thread that goes across all of Penn East Federal Credit Union’s endeavors. With over eighty-five years in business and 24,000 members, the community-oriented credit union is a vital part of Northeastern Pennsylvania. Penn East FCU serves Luzerne, Lackawanna, Wayne and Wyoming counties with five branches and a 24/7 digital banking service through their website www.penneastfcu.org and their Penn East Mobile Banking App. Penn East FCU provides trusted financial solutions, integrity, and reliability to its members and community.
