What are the types of fraud done by bank cheque?

Cheque fraud can be described as ‘depositing of a fake or manipulated cheque’. Cheque frauds are increasingly common in many jurisdictions, and therefore, it is important to understand the various types of cheque frauds and how to avoid them. In this article, we will be discussing the various types of cheque frauds and also the preventive measures that one can take when facing such issues.


Different types of Cheque fraud:


Fake Cheques: 


Cheque manipulation


Magic ink technique: 


Theft:


Preventive measures that can be undertaken to avoid cheque frauds:

Thankfully there are mainly simple and effective preventive measures that one can take in order to ensure that they do not fall prey to cheque frauds. These include:


- Always examine a cheque clearly before receiving or signing one in order to ensure that the cheque is not tampered with, one can check for any overwriting or striking off’s and also for the security features which are part of every cheque.


- Never issue cheques to unknown entities or persons, and as far as possible ensure to have proper written communication in place whether an agreement or otherwise with reference to the cheque number. This discourages the potential opportunities for a fraudster to misuse the cheque.


- Ensuring the physical safety of your cheque to avoid any potential theft or manipulation of the same.


- Upscaling your security features with your bank, such as proper notifications and, where possible, including dual signatories for a cheque approval as an enhanced security feature.


- Make it a habit to routinely check your monthly account statement and bank alert notifications in order to ensure that in case of fraud, you are able to take legal recourse immediately.


- It is also a good practice to rely on banking transactions more than on cheque, especially when the other party is not well known to oneself.


- Use your own pen always for signing a cheque in order to avoid the potential misuse of magic ink.


If ever faced with a cheque fraud matter, one should ensure to take prompt steps, which includes immediately notifying the bank and also proceeding to file a police complaint. As cheque frauds are increasingly common, one must exercise even greater caution in this regard. The UAE cabinet has also proposed a new change to the cheque law in the UAE, which will be effected in 2022. In a welcome move the new changes allow for directly filing for execution in instance if a cheque is not honored due to unavailable or insufficient funds.


https://www.professionallawyer.me/legal-articles/criminal-law/what-are-the-types-of-fraud-done-by-bank-cheque

After qualifying as a lawyer by profession, and after years of successful practice within the field of criminal and public law, Dr. Elhais moved to Dubai in 2006, where he has continued to build his business as a legal advisor. Dr. Elhais has made it his goal to make Al Rowaad Advocates one of the best law firms in the UAE. Working exclusively with Al Rowaad Advocates & Legal Consultancy, Dr. Elhais is an effective leader of the company, It's spokesperson, and driving force. He has a strong ethical stance with regards to the place of the law firm, from clarity on the legal processes through to the fee system. Website: https://www.professionallawyer.me/
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