What is an Altered Fictitious Check?
An altered fictitious check is a type of fraudulent activity that involves tampering with a legitimate check to make it appear as if it is worth more than it actually is. This can be done by changing the amount written on the check, altering the payee’s name, or adding additional signatures. While the term “fictitious” suggests that the check is entirely fake, in reality, the check starts out as genuine before being altered. Understanding the nature and consequences of this type of fraud is crucial for individuals and businesses to protect themselves from falling victim to such scams.
The process of creating an altered fictitious check usually involves the following steps:
1. Obtaining a Genuine Check: The fraudster starts by obtaining a legitimate check from a bank or a financial institution. This can be done by stealing the checkbook, accessing someone’s account information, or even purchasing a check from a check cashing service.
2. Altering the Check: Once the check is in possession, the fraudster proceeds to alter it. This can be as simple as crossing out the original amount and writing a higher amount in its place, or as complex as adding additional signatures or changing the payee’s name. The goal is to make the altered check appear more valuable than the original.
3. Endorsing the Check: After altering the check, the fraudster may endorse it, which is the process of signing the back of the check to transfer ownership. This step is crucial to make the check appear legitimate.
4. Cashing or Depositing the Altered Check: The final step is to cash or deposit the altered check. If the alteration is not detected, the fraudster can receive a larger sum of money than what was originally intended.
The consequences of altering a fictitious check can be severe, both legally and financially. Individuals and businesses that fall victim to this type of fraud may experience financial losses, while the fraudsters can face criminal charges for their actions. To combat this, financial institutions and law enforcement agencies are continuously improving their detection methods and working together to prevent and investigate such crimes.
To protect yourself from becoming a victim of altered fictitious checks, consider the following precautions:
– Regularly Monitor Bank Accounts: Keep a close eye on your bank statements and account activity to detect any unauthorized transactions or discrepancies.
– Use Secure Check Printing: When printing checks, ensure that they are difficult to duplicate or alter. This can include using security features such as watermarks, microprinting, or holograms.
– Educate Employees: Train your employees to recognize signs of altered checks and report any suspicious activity immediately.
– Implement Strong Security Measures: Use secure methods to store checkbooks and other sensitive financial documents, and consider using a lockbox to receive incoming mail containing checks.
By understanding the nature of altered fictitious checks and taking appropriate precautions, individuals and businesses can help prevent falling victim to this type of fraud.
