What are the types of bank check fraud? – Criminal law
United Arab Emirates: What are the types of bank check fraud?
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Check fraud can be described as “depositing a false or manipulated check”. Check fraud is becoming more common in many jurisdictions, and therefore, it is important to understand the different types of check fraud and how to avoid it. In this article, we will discuss the different types of check fraud as well as the preventive measures that one can take when faced with such problems.
Different types of check fraud:
Fake checks: In this type of fraud, fraudsters create a genuine-looking check, usually by copying the details of an original check, and the unsuspecting victim ends up accepting that check without realizing that it is a false.
Check handling: In this type of fraud, the check is intentionally manipulated to change some of its details, such as the amount, date, or payee details. The manipulation is done with the intention of defrauding.
Magic ink technique: In this type of fraud, the fraudsters provide magic ink for the purpose of writing the check. This leads to the disappearance of the written details due to the composition of the special ink type used and thus offers the possibility for fraudsters to fill in the details of the check themselves, for example by entering the desired amount.
Flight: In this type of fraud, a signed check is stolen from the original payee of the check, and the fraudster deposits the check and receives payment.
Preventive measures that can be taken to avoid check fraud:
Fortunately, there are mainly simple and effective preventative measures that one can take to ensure that they do not fall prey to check fraud. These include:
- Always clearly examine a check before you receive or sign it to ensure that it is not forged, that you can check for overwriting or writing off and the security features that are part of it. each check.
- Never issue checks to unknown entities or individuals and, whenever possible, make sure you have good written communication in place, whether it is an agreement or otherwise, with reference to the cheque number. This discourages the potential opportunities for a fraudster to misuse the check.
- Ensure the physical security of your check to prevent any theft or potential manipulation of it.
- Strengthen your security functions with your bank, such as proper notifications and, if possible, including dual signatories for check approval as an enhanced security feature.
- Get into the habit of systematically checking your monthly account statement and bank alert notifications to make sure that in the event of fraud, you are able to immediately seek legal redress.
- It is also a good practice to rely more on banking transactions than on checks, especially when the other party is not well known to you.
- Always use your own pen to sign a check to avoid potential abuse of the magic ink.
If you ever come across a check fraud case, you need to make sure you take prompt action, which includes notifying the bank immediately and filing a complaint with the police. With check fraud becoming more frequent, even greater caution must be exercised in this regard. The UAE cabinet has also proposed a new amendment to the UAE Checks Act, which will come into effect in 2022. In a welcome gesture, the new amendments allow direct deposit for execution for example if a check fails. is not honored due to lack of availability or insufficient funds.
The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.
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