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Cheque fraud
Has your business been targeted by fraudsters?
Contact us right away to report a scam. We can then guide you on what to do next.
Tips to beat cheque fraud
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If a fraudster gets a genuine cheque from your business, they can use it to try to steal money.
Unused cheques only need a forged signature to become a threat.
If you write a cheque, fraudsters can change the name of the payee.
It’s also a scam if a payee changes the amount on a cheque to more than you owe.
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Take these steps to help your business avoid cheque fraud.
- Keep cheques secure – When not in use, keep all of your cheque books in a secure place.
- Always know where they are and decide who can use them.
- If you order a new cheque book and it doesn’t arrive, contact us right away.
- Fill them in completely - Before you sign a cheque, fill in all the details. Cross through any spaces after the payee name and amount.
- Write payee names in full - Always write the name of a payee as it appears, like Lloyds Banking Group rather than LBG or Lloyds. Never shorten it.
- Check your statements - Make sure you can match all payments by cheque to entries on your bank statements.
- Get the right printer - If you use a laser printer to create your cheques, make sure it can do the job properly.
Contact us right away if you notice any issues.
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This scam has a fairly simple method and can happen to any kind of business.
Fraudsters pretend to be a new customer
They get in touch to order goods or services and offer to pay directly to your bank account.
They pay more than they owe
Instead of sending a payment to your account, they pay in a cheque for more than the value of the invoice.
Then they want a refund
The fraudster says it was a mistake and asks for an urgent refund. They want the difference between the cheque they paid in and the invoice – this is the overpayment.
You can’t cash the cheque
The cheque is counterfeit or stolen, but you won’t know that until the bank returns it unpaid.
By then it’s too late. You’ve sent a refund to the fraudster and lost the money. And sometimes you’ve even sent goods or provided a service, so you lose even more.
How to protect your business
There are three things your business can do to avoid this scam:
- Be suspicious of overpayments - especially from new clients.
- Talk to your bank - to find out exactly how the overpayment was made.
- Make sure a cheque has cleared - ask your bank if it’s definitely been paid into your account.