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The number of people paying with checks has decreased significantly over the years. Nevertheless, checks are still used by some consumers to pay for products and services. With this in mind, you’ll want to allowing your customers to use checks at your business. However, you have to be very careful when accepting checks.
There are fraud-related risks associated with checks, and some people try to pass off bad checks and steal money. As a business owner, you need to learn more about the ways business women can spot and stop altered checks. Here are some steps to help you get started:
Check for Signs of Erasing
First and foremost, you should take the time to look for signs that any part of the check has been erased. Can you see any white-out on the check? Does it look like the check’s value has been erased and rewritten? If so, there is a good chance that someone changed the check and increased its value.
This is very dangerous and you don’t want to cash that check. Doing so will hurt your business and the victim. If it looks like the check has been erased, you’ll want to avoid cashing it. Otherwise, you’re going to lose money.
Check the Bank Information
Remember that checks will contain information about the issuing bank. For instance, the check will contain the bank’s logo and address. You’ll want to look at this information and make sure that it’s accurate.
If you notice that something is off about the logo, there is a risk that you’re dealing with an altered check. Furthermore, you should make sure that the address is correct. If the address is wrong, you can guarantee that the check has been altered. It might be a fake or counterfeit check.
Check for a Number
Once you’ve learned how to sign over a check, you’ll want to avoid someone making you cash an altered check. Remember that all checks will have a check number. The number should be located in the top right-hand corner.
You may notice that there isn’t a number. What does this mean? If the check doesn’t have a number, you’re likely dealing with an altered check. You should refuse to cash that check since it could lead to additional problems in the future. Don’t cash the check since because doing so will hurt your business.
Finally, you should know that you can verify checks online. This is one of the quickest and most effective ways to solve this problem.
With certain websites, you’ll be able to verify the funds on a check in a few minutes. While some of these websites are free to use, you’ll have to pay for others. Either way, it’ll prove to be worth it in the long run.
What to Do
If you’ve found an altered check, you should report it to the authorities immediately. Furthermore, you may want to reach out to the bank and the victim. Letting them know what happened may help police track down the culprit and put an end to their scam.