How to Spot Altered Checks: A Comprehensive Guide
In today’s digital age, the risk of encountering altered checks has become increasingly prevalent. Whether you’re a business owner, an accountant, or an individual handling financial transactions, it’s crucial to be able to spot altered checks to protect yourself from fraud. This article provides a comprehensive guide on how to identify altered checks and the steps you can take to prevent them.
Understanding Altered Checks
An altered check is a fraudulent document that has been tampered with to change the amount, payee, or other critical information. These alterations can be as simple as changing a few digits or as complex as altering the entire check. The motive behind altering a check is typically to defraud the recipient by obtaining more money than intended or to redirect funds to a different account.
Signs of Altered Checks
To spot an altered check, you need to be aware of the common signs and red flags. Here are some key indicators to look out for:
1. Inconsistencies in the Check Number: Check numbers should be sequential and consistent with other checks issued by the same bank. If there are gaps or the numbers seem out of order, it could be a sign of alteration.
2. Changes in the Payee Name: The name of the payee should match the intended recipient. If the name has been altered or crossed out and a new name has been written in, it’s a clear indication of tampering.
3. Altered Amount: The most common alteration is changing the amount of the check. Look for any discrepancies in the amount, such as a different amount written in the top box or a scratch-through with a new amount written over it.
4. Missing or Extra Characters: Pay attention to any missing or extra characters in the account number, routing number, or other critical information on the check.
5. Ink or Paper Differences: Altered checks may have different inks or paper types compared to other checks from the same issuer. This can be a sign that the check has been tampered with.
6. Signature Differences: The signature on the check should match the signature on file. If there are discrepancies or if the signature seems unfamiliar, it could be a fraudulent check.
Steps to Take
If you suspect that a check has been altered, here are some steps you should take:
1. Do Not Cash or Deposit the Check: Do not process the check until you’ve confirmed its legitimacy. Cashing or depositing an altered check can lead to financial loss.
2. Contact the Issuing Bank: Inform the bank that issued the check about the alteration. They can investigate and take appropriate action.
3. Report the Incident: File a report with the appropriate authorities, such as the police or the Federal Trade Commission (FTC), to help prevent future fraud.
4. Review Security Measures: Consider implementing additional security measures, such as using checks with advanced security features or implementing a check verification process.
Conclusion
Spotting altered checks is an essential skill for anyone handling financial transactions. By being vigilant and recognizing the signs of tampering, you can protect yourself from falling victim to check fraud. Remember to take immediate action if you suspect an altered check and to report the incident to the relevant authorities. Stay informed and proactive to ensure the security of your finances.
