Check forgery involves forging a negotiable document to cash money that does not belong to the forger. This can happen through forged signatures, check washing, or forged checks. Canceling checks and training employees to spot forgeries can prevent this. Liability can fall on the person cashing the check unless the counterfeiter is brought to justice.
Check forgery is the act of forging a negotiable written document in order to cash money that does not belong to the forger. This type of check fraud is typically encountered in one of three ways: forged signatures on real checks, check washing, and forged checks. In most countries, this type of embezzlement is illegal and liability can fall on the person cashing the check unless the counterfeiter is brought to justice.
A common type of check forgery involves forged signatures on real checks. This happens most often when a blank check is stolen. The thief forges the account holder’s name on a check and uses it to purchase goods or cash the check for money. Canceling checks as soon as they are missing or stolen is one way to prevent this type of forgery from happening.
Another method of forging checks is known as check washing. This process involves a legitimate check being stolen in transit from one party to another, usually by theft in the mail, and used for fraud. Fraud occurs when the forger erases all signed information except the signature and changes the name of the payee to the name of the forger. The forger can also significantly increase the amount. This forged check is then taken to the bank to be cashed.
A similar technique for checking laundering involves changing the details written on a check. This offense occurs when a check is legitimately signed on a counterfeiter for a certain amount. In this case, the forger takes care to match the color of the ink used by the check writer to change the payment amount on the check. This is done by adding and changing numbers and doing the same with the amount written on the check.
Forged checks are less common in the world of check counterfeiting, but they can be more difficult to detect. In this case, a forger creates a check, adding realistic account and routing information. This forged check is passed off as a legitimate check for goods or cash.
Laws prosecuting check forgery vary from country to country. In most cases, a bank or business catches the misleading check because employees are trained to spot forgeries. In some situations, the person cashing the check, even if they unknowingly handle a forged check, can be held responsible for the loss. Taking the counterfeiter to court is the most common way to get funds replaced.
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