Cheque fraud is the alteration, forgery or counterfeiting of cheques.
How it happens
Alteration to cheques can involve the abrasion of the surface of the cheque to remove and replace information. In most cases, the payee’s name is the target of alteration.
Forged cheques are stolen cheques that are used with forged signatures.
Counterfeit cheques are fake cheques. They usually have no imperfections such as smeared ink, but holding the cheque under a UV light may reveal a ‘mottled’ effect. Counterfeit prints on dulled paper are an indication of lack of security features when compared to a legitimate cheque.
How to protect yourself
Follow the advice below to help protect yourself and your business against cheque fraud:
- Reconcile cheques carefully, compare counterfoils to your statements.
- Always use full signatures.
- Make sure signatories are updated regularly, ensure previous employees are removed.
- If you have special printed cheques, make sure they have image security features.
- Never store your cheques where they can be accessed by others; store them in a secure and safe place where they can’t be stolen.
- Don’t leave large open spaces on cheques, this can give opportunity for amendments to be made.
How to report it
If you believe you have been a victim of this type of fraud, please report it to us or your bank.
You should also report it to Action Fraud on 0300 123 2040 or via the Action Fraud website. If you are in Scotland, please report to Police Scotland directly by calling 101.