At one time there used to be a great deal of check fraud going on. With the advent of the Internet, fraud schemes that became even more popular involved things like stealing identities and credit card numbers through electronic means; often referred to as â€phishing.†Unfortunately however, check forgery and other alterations are still a major problem that you need to know about. Losing any money out of your bank account that you did not expect may cause real financial problems for people these days. Even if the money is eventually given back, it takes a long time to file a dispute and see it through to its conclusion. In some instances, one fraudulent check can put a family behind on paying their bills, like their mortgage payment. If you are facing foreclosure, you need to know what kinds of check frauds are prevalent today. The first kind of fraud you may run across is when someone forges your signature on a check and then blatantly proceeds to cash it. If that happens, the bank normally takes the loss, because they weren’t paying attention to the signature on the check. Frankly, most banks don’t take the time to check signatures anymore. In cases like this, a forged signature does not mean you are responsible because the signature is ineffective. What this means is that your bank may only take funds out of your account if the check they have in their hands is properly payable. A check with a forged signature is not considered to be properly payable. It’s up to the bank to check the customer’s signature to spot possible forgeries. Other forgeries that appear to be relatively successful these days are check endorsements. This could happen if your check was stolen or you lost it after you signed it. However, this is another example of a check that is not properly payable. It the bank does debit your account, it should be responsible for giving it back later. Altering checks after they have been written is another favorite fraud tactic, with the leading alteration being the amount being changed. When the alteration is made fraudulently and the customer did not make it and initial the change, you have no obligation. Sadly, some banks will go ahead and debit for the original amount indicated on the check making it still a good deal for thieves to alter checks. If you think something like this has happened to you, work with the bank to get the situation sorted out, but make sure you do this quickly, as there are strict statutes of limitations in place.
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