What is an Altered Check?
An altered check is a type of fraudulent activity that involves modifying a legitimate check in any way to deceive the recipient or the financial institution. This can include changing the amount written on the check, altering the payee’s name, or even tampering with the check’s endorsement. Understanding what constitutes an altered check is crucial for individuals and businesses to protect themselves against such fraudulent activities. In this article, we will delve into the details of altered checks, their common types, and the steps to prevent falling victim to this type of fraud.
Types of Altered Checks
1. Amount Alteration: This is the most common type of altered check, where the payee changes the numerical amount written on the check. For instance, a check written for $100 might be altered to read $1,000.
2. Payee Alteration: In this case, the payee’s name on the check is changed to someone else’s name. This can be done by scratching out the original payee’s name and writing a new one.
3. Endorsement Alteration: The endorsement area on the back of the check is where the payee signs their name to authorize the payment. An altered check may involve changing the endorsement to someone else’s name or adding additional endorsements.
4. Date Alteration: The date on the check can be altered to either make the check appear older or more recent than it actually is. This can be used to commit fraud by taking advantage of time delays in the payment process.
5. MICR Line Alteration: The Magnetic Ink Character Recognition (MICR) line on the bottom of the check contains information such as the account number, routing number, and check number. Altered checks may involve changing this line to mislead the financial institution.
6. Signature Alteration: The signature of the person who wrote the check can be forged or altered to make it appear as if the original signer authorized the payment.
Preventing Altered Checks
To protect yourself against altered checks, it is essential to follow these preventive measures:
1. Always keep your checks in a secure place and do not leave them lying around where they can be easily accessed by unauthorized individuals.
2. Inspect your checks regularly for any signs of tampering, such as alterations in the amount, payee, or endorsements.
3. When depositing or cashing a check, make sure to verify the payee’s name and the amount written on the check.
4. Be cautious of checks received through email or online sources, as they can be easily altered.
5. Use security features such as watermarks, holograms, and security threads on your checks to deter tampering.
6. Report any suspicious activity or altered checks to your financial institution immediately.
By being aware of the various types of altered checks and taking the necessary precautions, individuals and businesses can significantly reduce their risk of falling victim to this type of fraudulent activity.
