Check Fraud is one of the largest challenges facing financial institutions and businesses. Technology has made it increasingly easy for criminals, either independently or in organized gangs, to create realistic counterfeit and fictitious checks as well as false identification that can be used to defraud others.
Fraud schemes involving checks may take many forms. Checks may be:
- Altered, either as to the payee or the amount
- Forged, either as to signature or endorsement
- Drawn on closed accounts
- Used in a variety of schemes
Check fraud criminals may be independent operators, or organized gangs. The methods they use to further check fraud include:
- Stealing financial institution statements and checks
- Working with dishonest employees or merchants who accept payments by check.
- Rifling through trash for information about financial institution relationships.