How To Avoid Cheque Fraud?

IamCheated.com Research Team | July 11, 2018  7:30:pm

Some people consider the traditional way of banking as the safest, when compared to online banking. But unfortunately, frauds take place in traditional banking as well. Now fraudsters use a number of tricks to misuse cheques. Fraudsters create fraudulent cheques or change the name or amount of a legitimate cheque. This is called cheque fraud. In this blog, we will discuss how to avoid cheque fraud.    

1.  Keep your cheque in a safe place

Some people just keep their cheque book lying around But this is not a good habit. You should always keep your cheque book in a safe and secure place. Develop the habit of placing cheques, bank statements and cancelled cheques in a safe area.

2. Check your cheque book

You must check your cheque book thoroughly as soon as you receive it and make sure that no cheque leaves missing. In case any cheque leaves missing, inform your bank immediately.

3. Destroy unwanted cheques

In case you have a cancelled cheque or a signed cheque which you don't need any more, destroy it immediately by scribbling on the cheque number and MICR code.

4. Write the cheque carefully

Be very careful while writing a cheque to someone. You should put a double cross on the left-top corner of the cheque and write “A/C Payee” or “Account Payee“. This makes sure that money will be directly credited to the bank account and not handed over to any person, as cash over the bank counter.

Make sure to add a running line after the name and amount in the cheque. This ensures that nobody can add anything after the amount or name and misuse the cheque. Avoid abbreviations on the cheque and write the full name of the person on the cheque.

See Also: How fraudsters cheated a Delhi woman of Rs 3.80 Lakh by using cancelled cheques?

5.  Never sign a blank cheque

Never sign a blank cheque and leave it lying around. If someone gets the blank cheque, they can encash all your money. So it is advisable to sign the cheque, just before handing it over.

6.  Keep a record of all your cheques

Do not forget to keep a record of all the details of your drawn cheque. You should write down all the details such as cheque number, date of issue and the amount. Many cheque books will have a page where you can pen the details of a drawn cheque.

7. Check your bank statement regularly

You should develop the habit of checking your bank statements regularly. This will help you identify if there are any fraudulent transactions.

8. Inform your bank

In case you lose or misplace your cheque, inform your bank immediately to avoid fraud.

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