Question

If a fraudster does not have legitimate access to check stock, what are three ways blank checks can be fraudulently obtained? What measures could an organization take to prevent the three ways you mention?

Answer 1

Check fraud may be defined as use of checks for the purpose of committing fraud.

Following are the ways by which blank checks can be fraudulently obtained:-

1). Theft:- Stealing checks to use for fraudulent purposes.

2). Washing:- Using various types of chemicals to remove the information from a check.

3). Counterfeiting:- Printing checks illegally by fraudulently using the information of victim.

Following are the measures that an organization could take to prevent the three ways above mentioned:-

1. Vet anyone who enters your premises:- If you allow any person inside your organisation and especially at the place where your important documents are kept,run them through a background check to determine how trustworthy they may be. And keep all the important documents locked up.
2. Watch for “Check washing”:- Write your check using “fraud prevention pens” which contain ink that is not possible or relatively more difficult to change because fraudsters use chemicals and solvents to erase or alter check information.
3. Protect your checks:- Protect your all the information that a thief would need to print a fake check because checks are relatively easy to reproduce.