What is Cheque Fraud?
With the unlawful use of cheques, fraudsters can illegally acquire or borrow funds that don’t belong to them. This involves stealing cheques, creating fraudulent cheques or even changing details on a cheque to access your account.
What can you do to prevent it?
- Clearly write the complete payee name and amount in words and figures, ensuring that extra space/gap is crossed out.
- Use your own pen to write and sign cheques.
- Don't pre-sign any blank cheques.
- Account Payable Cheques should be crossed and bearer should be cancelled (struck off) to ensure that fraudsters can’t encash your cheque.
- Register for SMS alerts with an active mobile number to ensure that you have a tab on all your account transactions.
- Keep your Cheque book in a safe place to avoid theft.
- Whenever you receive your Cheque book, please count the number of cheque leaves in it. If there is a discrepancy, bring it to the notice of the Bank immediately.
- Never sign in multiple places unless authenticating a change.
- When you cancel a cheque, mutilate the MICR band and write "CANCEL" across the face of the cheque.
- Shred any unused/cancelled cheques (if not required) when you close your bank account.