Tips for Writing Cheques
of the frauds could easily be avoided if the cheques are written
carefully. These tips will help you avoid being defrauded through cheque
notorious frauds have been perpetrated by adding extra letters to an
acronym so that the cheque becomes payable to someone else.
example the payee S.A.R. was changed to S.A. Robinson to allow the
perpetrator to get away with over a million dollars.
cheques are said to be often little better than cash cheques.
may sound very obvious, but we are aware of a number of frauds that have
been perpetrated by a person erasing the payee name and substituting
one fraud the cheque writer was unaware that the pen’s ink was erasable.
His pen had been inadvertently swapped with his daughter’s.
used the wrong pen during exams, which resulted in her panicking and doing
poorly. Her father found it harder to face her than his boss.
have advised that it is better to use a normal pen that leaves an
indentation in the paper, rather than a felt tipped pen.
not leave a large space before writing the first word in the amounts.
have been perpetrated by adding an acronym or name in the space before the
have also been altered by adding a word or two before the original amount
is invariably easy to add a figure before the first figure in the amounts
box, so that the written and numerical amounts agree.
golden rule is that any alterations to a cheque should not be signed. It
is better to keep or destroy the cheque and issue a new one.
an alteration is signed it is very easy for somebody to change the
alteration, and the signature will usually be taken as authorising the
lines after writing or the word “only” after the name of the payee or
the written amount.
have been frauds perpetrated by adding a dash and another name after the
payee. Bank tellers have allowed cheques like this to be deposited into
the account of the second name on the basis that there were two names.
an adequate crossing on cheques so that they at least have to paid into a
bank account or preferably into the bank account of the payee only.
should be kept in a secure place.
For more tips, advice and practical pointers see Fraudproof Your Business Manual.