Commercial Check Fraud
Someone passing a bad check to your business is just as costly as
someone stealing from the register. Because payment by check is so
common, your vulnerability to check fraud is significant. While no
single strategy will ever stop every worthless check from being passed at
your store, you can implement policies and procedures that can
significantly reduce your exposure.
Policies
& Procedures:
- Your company should have a written policy for accepting checks
and employees should be familiar with it.
- Have written policies on opening and closing procedures then
abide by them.
- Limit maximum dollar amount of checks accepted.
- Checks exceeding purchase amount should require management
approval if allowed at all.
- Record required information on checks for presumption of
identity in prosecution (see
Florida Law)
- Employees accepting or managers approving checks should initial
the check to help recall the transaction should the check prove
worthless
- Accepting out-of-town & two party checks should be
specifically addressed. The risks associated with these types of
checks are higher.
What to Look for:
Sometimes the actions of the person trying to pass the bad check or
the check itself will be an indicator you can look for.
- People passing bad checks may act nervous or in a hurry.
- They may attempt to distract the cashier from the transaction.
- They may not have sufficient identification or be reluctant for
you to look at.
- You should scrutinize checks that are not personalized (no name,
address, etc.)
- Low numbered checks indicate a fairly new account. (Professional
bad check writers often open fictitious accounts)
- Ensure the check's date is the current date (not post-dated or
stale-dated)
Types of Worthless Checks:
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