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How to Prevent from Cheque Fraud?

Written by Anuraag Singh ~ Modified: 03-04-2022 ~ Cyber Tip ~ 3 Minutes Reading

Bank fraud instances are increasing daily in various parts of the nation. Cheque fraud has increased significantly in recent years. This article will discuss what are the types of Cheque frauds. Additionally, we will explain how to prevent from Cheque fraud?

Bank fraud has become increasingly prevalent in recent years. Every day, reports of bank fraud come in from all around the country. The country’s banking sector is always educating and advising its consumers on how to avoid such scams. The Reserve Bank of India has taken fresh measures to do this. In recent years, there has been a dramatic increase in the number of bank check fraud instances. Additionally, the Reserve Bank has implemented a Positive Pay System to prevent check fraud.

All banks are increasingly implementing the Reserve Bank’s system. Today, we’ll discuss various safeguards for avoiding check fraud. Additionally, you may take these steps to guarantee that customer-issued checks are not abused.

What are the types of cheque fraud?

  • Fake cheques: The fraudsters construct an authentic-looking check, generally by replicating the data from an original, and the naïve victim accepts it without understanding it is a fake.
  • Manipulation of checks: In this sort of fraud, the check is purposefully altered to alter certain elements, such as the amount, date, or beneficiary information. Manipulation is carried out with the goal of defrauding.
  • Technique utilising magical ink: The fraudsters offer magic ink for the aim of writing the cheque in this form of scam. As a result of the unusual type of ink’s composition, the written information vanish, allowing fraudsters to fill in the cheque details themselves, such as inserting their preferred amount.
  • Theft: In this sort of fraud, the fraudster steals a signed cheque from the intended beneficiary, deposits it, and obtains the cash.

As numerous sorts of fraud such as credit card fraud and others continue to grow in popularity on a daily basis, it is always prudent to prevent them.

How to prevent from cheque fraud?

Never sign a blank check: Always verify the payee’s name, the amount, and the date. Never affix your signature to a blank check. Always write the details on the check with a pen.

Crossing cheques: To safeguard the bank cheque, issue crossed checks when needed. This will help you to prevent from cheque fraud.

Leave no blanks: Never leave blank space on the check while issuing it. Always put a line through an empty spot. Sign the cheque in a conspicuous location. If any modifications are made to the cheque, sign at that location to confirm the changes. Make an effort not to alter the filled-in information on the cheque.

Things to keep in mind while cancelling: Always take off the MICR band and write ‘CANCEL’ across the whole check before cancelling it.

Maintain a record of the cancelled check’s information: Whenever you write a cheque to someone, keep the specifics of the transaction with you. Apart from that, keep your chequebook in a secure location.

Use your pen: Always sign a cheque with your own pen to eliminate the possibility of magic ink being misuse.

Report to the bank: Notify your bank immediately if your check is lost or stolen.