How to Avoid Cheque Fraud

The internet and the exponential growth of technology has made scams easier to pull off, and while you might think that most of those scams are now committed online, cheque fraud is still a problem in the UK and worldwide.

Cheque fraud is a real problem in the retail sector, driving many business owners to seek the help of fraud lawyers in London and other large cities.

So how can you avoid cheque fraud and scams – whether your business is located in the UK, Europe or has grown into a global enterprise?

Follow the expert advice below:

1 Set in place a strong cheque acceptance policy
If you run a business in Europe, America and Asia and you accept cheques as a payment means, consider the advice of specialists and putting in place a strong cheque policy.

In Asia, cheques are not very popular, but if you decide to open a business in Hong Kong, for example, instructing your employees about asking for identification and imposing limits on the amounts to be paid by cheque is a good starting point.

2 Verify the payer’s identity
One of the most secure ways to avoid cheque scams is to carefully verify the payer’s identity. You should always make sure the name and address on the cheque are the same as that shown on the customer’s ID.

For instance, when starting a company in Switzerland, one of the most important financial centers in the world, most business owners consider accepting cheque payments. Even if companies here rely on strong financial regulations, the measures taken to avoid cheque fraud are not sufficient.

3 Verify the cheque
In the last few years, Estonia has become one of the most technologically-advanced countries in the world, but this comes with a price, as scammers find it easier to use their online tricks here.

If you are establishing a company in Estonia and opt to accept cheques as payment, make sure you always verify that cheque – feel it, verify the numbers on it and, most importantly of all, never accept second-party cheques.

Apart from these sound tips, accounting is your closest friend when it comes to payments, including those received through cheques – you should verify the payments balance at the end of each day in order to reduce the risk of cheque fraud.

Avoiding cheque scams is not that hard if you follow a few simple rules and always keep an eye on the cheques you receive – remember, always verify the cheque and the payer.


Like what you see?

Sign up to The Resident newsletter for even more news, views and things to do in London, delivered direct to your inbox once a week