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Types of Cheque Frauds and Ways to Avoid them

IamCheated.com Research Team | May 15, 2019  6:29:pm

Types of cheque frauds and ways to avoid them

Fraudsters come up with various tricks to cheat people and wipe out money from their bank account. The most common trick used by fraudsters is card skimming and card cloning. In India, a lot of people have lost their hard earned money to this type of fraud. Apart from card skimming and cloning, fraudsters are even using cheques to carry out fraud and wipe out money from the bank accounts of innocent people.

Since last year, many cases of cheque frauds have come to light where it was very difficult for even experienced bankers to identify the forgery of the cheque. In this blog, we will discuss various kinds of cheque frauds and tips to avoid them.

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

Types of cheque frauds

1. Counterfeit Cheque

In the case of counterfeit cheque, fraudsters create a fake cheque on non-bank paper. Counterfeit cheque looks exactly like an original cheque, but it will be fake. These cheques are created with the intention of stealing money from a genuine bank account.

2. Forgery

Forgery of a cheque is an old form of cheque fraud which is still being used by many fraudsters. Under this, fraudsters use original cheque and forge the signature of the account holder to cheat the bank. If the signature is similar to that of the account holder, fraudsters will be able to withdraw money from the account.

3. Altered cheques

Under this fraud, fraudsters alter the original cheque issued by the account holder. Here account holder's signature will be genuine, but they will alter other details like name, amount and date.

How to avoid check fraud?

1. Write the cheque carefully

You should be very careful while writing a cheque. You must write a cheque in such a way that it cannot be altered by anyone. You should not leave any spaces between words and numbers as fraudsters can add an alphabet or a number in the spaces or gaps.

Also, you must add a running line after the name and amount in the cheque. This makes sure that nobody can add anything after the amount or name.

2. Keep your cheque in a safe place

You should always keep your cheque in a safe place so that it cannot be misused by anyone.

3. Check your cheque book

Make sure to check your cheque book as soon as you receive it and in case any cheque leaves are missing inform the bank immediately.

4. Do not sign the blank cheque

Do not sign a blank cheque and leave it lying around. If someone finds the blank cheque signed by you, they can withdraw all your money from the bank account. So, you must sign the cheque only before handing it over to someone.

5. Destroy the unwanted cheque

If you have a signed or cancelled a cheque which you don't need, destroy it immediately. You can destroy the cheque by scribbling on the cheque number and MICR code.

6. Report to the bank

If your cheque is lost or stolen, report it to the bank immediately. 

See Also: What is Cancelled Cheque?

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