10 ways to prevent check fraud

Avoiding check fraud requires a lot of caution on your part, here are some valuable tips on how to avoid check frauds.

1 Cheques or bankers’ draft should not be accepted for online payment unless it’s from someone you know well(not on phone or by mail) and trust. Be doubly careful if it is payment for an expense product or service.

2 It is important that you keep your chequebook in a safe place. It is very important that you don’t leave your checkbook lying around, especially where it can easily be accessed by others.(used , unused or perhaps blank). You should ensure you shred cancelled checks properly so as to prevent anyone from retrieving account information.

Furthermore check your bank statements regularly and report any missing cheques to your bank immediately.

3 If you are selling expensive items online insist on telephone or internet banking in place of cheques. Another alternative is to use CHAPS. You have to pay (or can arrange to split costs with the other party), but it's very secure, and payment is same-day, rather than the usual clearing period.

4 If you customers insist on paying with cheques then you must insist they wait until the cheque is fully cleared and you are sure that the money is genuinely in your account

5 Real bank officials dont ask for personal or account information for any reason whatsoever.

6 Cross out any blank spaces in fields such as payee name, amount in words and figures, etc to avoid additions or alterations.

7 Avoid exposing or printing personal information on check books.

8 Be wary of people offer to an item from you at a higher price that you quoted. You can contact your local office of fair trading, ASIC or the ACCC for assistance.

9 Scammers will come up with very realistic excuses for the overpayment, it is better you send the check back and ask for another. If you have already deposited the money in your account, make sure that your bank clears the money fully before you make any returns.

10 Don’t be greedy- how often do you see people paying more for anything, we all want to get items at a cheaper price without the quality been compromised. So wake up and be wise.