Cheques

How to Prevent Cheque Fraud

• Never accept a cheque, or banker’s draft from someone, unless you know and trust them. Be especially wary when accepting a high–value cheque; for instance if you are selling a car.
• Be aware that, until a cheque has been "cleared for fate" at the end of the 6th day after you have paid the cheque in to your account, there is a risk that the money could be reclaimed IF the cheque turns out to be stolen, fraudulently altered or counterfeit.
• It is safer to ask for payment for high–value items to be made by other means  (an internet or phone banking payment or a CHAPS payment). There is a charge for a CHAPS payment but it is a guaranteed same–day value payment. If the "buyer" is unwilling to pay the relatively small cost involved – or to split it with you – then you really do need to be on your guard.
• Be aware that a banker’s draft or building society cheque is not necessarily safe from fraud. They can be stolen or altered like any other cheque, and if altered, stolen or counterfeit they will not be honoured. If you receive a banker’s draft in payment for goods, you should wait until you have certainty of fate at the end of the 6th working day after you’ve paid the cheque in to your account before releasing the goods.
•  Keep your chequebook in a safe place, report any missing cheques to your bank immediately and always check your bank statement thoroughly.
• If you are making a cheque payable to a bank or credit card company to pay off your credit card bill, you must ensure that you provide sufficient details about the payee. Enter the full details for the account holder in the payee line, for example XYZ bank, re J Jones, account number xxx.
• Banks will examine each case of cheque fraud on an individual basis but, generally speaking, if you are an innocent victim of cheque fraud who has had a cheque or chequebook stolen and used fraudulently you will be refunded. However, if you are the victim of a scam because you have accepted a cheque or banker’s draft that turns out to be fraudulent, and you have parted with
  either goods or services or, in the case of receiving a cheque or banker’s
  draft for an inflated amount, you have paid cash back to the buyer, you are unlikely to be refunded.
  

For more information visit www.chequeandcredit.co.uk