| When it comes to identity theft, credit card numbers | | | | consumer's signature card to be able to spot potential |
| and bank account information stolen through electronic | | | | forgeries. |
| means is becoming more popular than the traditional | | | | Thieves that forge indorsements of checks are also a |
| check fraud schemes. It seems that there is a new | | | | problem in the banking industry. This may happen in |
| press release every day indicating a corporation has | | | | cases where the check is lost or stolen after the |
| had customers' financial information stolen. Check | | | | customer has signed it. As with a forged signature, |
| forgeries and alterations, however, are still a problem in | | | | however, a check with a forged indorsement is not |
| the banking world and an issue that consumers should | | | | properly payable. If the bank debits the checking |
| be aware of. | | | | account, it should later be recredited for the amount of |
| Especially in difficult economic times, the loss or theft | | | | the check. |
| and cashing of a single check can cause enormous | | | | A final type of check fraud is when a check is altered |
| financial difficulties for a family. Even if the money is | | | | after it has been written. The most frequent alternation, |
| eventually recredited back to the banking customers, | | | | not surprisingly, is when the amount is changed. For |
| the time period in which it takes to file a dispute can | | | | example, $5.00 becomes $500, and "five dollars" is |
| ensure that the consumers fall behind on other bills or | | | | changed to "five hundred dollars" written on the check. |
| monthly obligations. This is why homeowners facing | | | | In cases where the alternation is made fraudulently, the |
| foreclosure should be aware of the different types of | | | | consumers may have no obligation at all. However, in |
| check fraud, in case they become a victim. | | | | other cases, the banking customer may be debited for |
| The first type is when a thief forgers a consumer's | | | | the original intended amount of the check. Of course, |
| signature on a check and then cashes is. In these | | | | this makes it worthwhile for wrongdoers to alter |
| cases, it is the bank that will be forced to take the loss. | | | | checks, in the hopes of getting away with the larger |
| The general theory is that, because the bank making | | | | amount. |
| the payment has the customer's signature on file on a | | | | Forged signatures, forged indorsements, and alterations |
| signature card, pointing out a forgery should not be | | | | of checks are the three prominent types of check |
| difficult. Of course, in practice banks never scrutinize | | | | fraud that consumers should be aware of. If there is |
| signatures. | | | | any suspicion that any of these actions have occurred, |
| A forged signature is considered ineffective and can | | | | the first action should be to begin disputing the account |
| not bind the banking customer. Banks are allowed to | | | | debits with the bank. Many of these issues can be |
| withdraw funds from a consumer's account only if the | | | | resolved by working with the bank, but there are also |
| check is properly payable, and a check with a forged | | | | strict statutes of limitations in which to begin the |
| signature does not count as properly payable. And the | | | | process. |
| bank is in the position of being able to examine the | | | | |