Preventing Against Cheque Frauds.!

Preventing Against Cheque Frauds

As more and more people switch to online banking and wallet payments. Cheques still form the major payment mode for businesses as it provides the buyer with a flexibility to pay on a future date and the seller to secure (hypothetically) a payment from the buyer without having to follow up on a rigorous basis.

Why business still use cheques

  • Cheques are deemed as the most familiar method for payments
  • Cheques make it easier to manage cash flows
  • No Deductions ever for any cheques deposited to the account
  • Money processed through cheques gives better control to the organization

It is not uncommon for cheque frauds to happen. It can be using magic pens to remove your written amount or can alter the written text and figures to totally change what you actually paid for. In today’s scenario, it is important to protect yourself against any cheque frauds and I am sharing 9 tips on how you prevent yourself against any cheque fraud

9 Tips to prevent yourself again cheque frauds

1. Prefix and Suffix your entries on the cheque

Always put (***) or (##) Symbol at the beginning and end of each field on your Cheques. This ensures that no one adds anything to alter the meaning of it.

Cheque
Image Credit: www.quick-cheque.com

2. Put the date in DD-MMM-YYY format only

Many a times we write the cheque date as 10/02/20. This most likely will imply that the cheque is meant for 10th of February 2020. However, it can be changed to 10/02/2021 to extend the validity of the cheque by 1 year or presented on 2nd of Oct 2020. To avoid such confusions, you should always write the date on your cheques as DD-MMM-YYY (10-FEB-2020).

3. Never overwrite or correct information on the cheque

It is human nature to correct things when you make a mistake. This can turn out to be dangerous on a cheque. If you made a mistake on a cheque, and then corrected and resigned it, you indirectly indicate that the you issue cheques which can have corrections and no action is required in case your cheque has overwriting which is counter signed. You should always cancel and issue a new cheque so you present the correct and profession picture to your suppliers and banks

4. Always issue account payee cheques

Accounts payee cheques imply that the cheque cannot be cashed over the counter and the money will be deposited to the Beneficiary’s account only. For making a cheque Accounts Payee, you should either put two diagonal lines on the top left or Write the Words ACCOUNTS PAYEE ONLY on top of the cheque. This intimates the bank that the cheque cannot be cashed over the counter is meant for account to account transfer only.

5. Mention Not to Exceed on your cheques

If you are issuing a cheque for AED 5,000/- then mentioning NOT TO EXCEED AED 5,000/- is a good practice. This way the bank knows that the cheque is not supposed to exceed the said amount and it makes it even harder from a fraudster to tamper with your cheque.

6. Mention a Valid up to date on your cheque

An undated cheque can lead to a lot off issue as it gives the power to the holder to bank it at any point in time. It is a good practice to mention the validity of the cheque on it, if you are issuing an undated cheque to anyone. This way your engagement gets limited to the said period.

7. Get a receipt for the cheque

I can’t emphasize on how important it is to get a receipt at the time of issuing a cheque. You should, without fail, get the person collecting the cheque to sign a copy of the cheque and get an official receipt from them. This way you ensure that the other party banking the cheque has agreed on the date, amount and other aspects of the transaction

8. Track your Cheques

Keep a sharp eye towards your bank account via SMS and reconcile your bank regularly depending on your cheque volume. Int

9. Use a cheque printing software

There are many software’s which are available for Free download or a small amount which will help you in printing cheques instead of hand writing them. One such cheque printing software which covers all of the above features is Quick Cheque. It is a cheque printing software for UAE Banks and it comes preconfigured with all UAE Bank Cheque Formats. You can download it for FREE from the website

Be safe and educate others to be safe.