BGN Entrepreneur

Check fraud is among the oldest and most common forms of financial crime. A typical check fraud is defined as using forged, falsified or altered checks to pay for goods or services.
In order to benefit people who accept checks, the banking sector has changed the check processing by the end of November 2007. This change means one can be sure that after six working days on paying in the checks, which means the money from the check in one’s account is protected for any loss, and cannot be reclaimed, even if the check was returned or found out to be originally fraudulent.
Generally speaking, banks will review checks fraud case individually. So, if you are a victim of stolen check, or fraudulent use of your check, you can be refunded. However, if you have sent out goods or pay cash back to the buyer on accepting check or bank money order which proved to be forged, you can not be refunded.

Here are some former tips to avoid check fraud.
1. Do not accept a check or bank draft from people you are not familiar with and trust. High-value checks should always be paid special attention to.
2. Remember that a banker’s draft is not necessarily secured from fraud. If you receive a bank draft for payment of goods, one should wait until the day after the payment by the end of 6 days before releasing the goods.
3. Always keep your checkbook in a safe place and report any missing check to the bank immediately and regularly check your bank statement thoroughly.
4. Make sure that sufficient details of the payee are provided when paying bills with checks.

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