As credit cards are increasingly more commonplace in shopping transactions, consumer knowledge about how to protect themselves from fraudulent cheques continues to shrink. Cheque transactions are an easy way for scammers to prey on everyday Canadians, who rarely use cheques when making purchases. But in some cases, such as with property rentals or when accepting payments of large sums of money, it is still necessary to receive cheque payments. A few simple steps could be all the difference it takes to keep your finances, and your piece of mind, safe from scam artists.

Don’t wait until it’s too late: you, the depositor, are ultimately responsible for the validity of the cheque you deposit at the bank. If the cheque is later found to be fraudulent, you will be held liable to return the full amount of the cheque to the bank. If you’ve heard the term “it’s better to be safe than sorry,” now’s a great time to put it into action. Request a certified cheque, money transfer, a PayPal online payment, and use the “sniff” test. If something feels wrong, simply find another buyer.

For any transactions that are made using a cheque, money order or bank draft, keep in mind that Canadian banks have required several security features to be included for verification purposes. Cheques normally describe their security features on the back, which usually includes watermarks and elaborate designs that are clearly visible. These security features are especially designed so that they will not show on a photocopy or scan of the original cheque. Money orders generally include similar security characteristics.

Before accepting a cheque, ensure that the person giving it to you has completed it accurately, with the correct date and time. Never accept a post-dated cheque or agree to wait until a certain date before depositing it. Don’t take a cheque that shows obvious signs of alteration, or one that is made out to the buyer and then signed over to you. Don’t accept a counter cheque, which does not have preprinted name, address and account number information.

Be wary of the name listed on the cheque: if it is a business account, consider the likelihood of a business approving the transaction to be made using their account. And never take a cheque that is made out for more money than you were expecting. This common scam begins with the innocent seller accepting a cheque for more than the purchase price. The scammer later contacts the seller, remorsefully explains the error and asks for the difference in money to be returned. Several weeks later, when the bank returns the cheque as fraudulent, the seller has lost the full amount of money and the scam artist is nowhere to be found.

Stay vigilant when dealing with cheques, money orders and bank drafts. If your suspicions have been raised, you may also ask your bank to contact the buyers’ bank to confirm banking details. Another wise move would be to wait until the bank has cleared the cheque before withdrawing and using the cash. Ask to see the seller’s driver’s license before taking the cheque; if anything goes wrong, you will know the buyer’s name for identification purposes.

Word to the wise: scam artists know how to spot a target. Keep these tips in mind and your finances will stay where they belong – in your own hands.

Author Bio: Scott Wilkins is a Canadian business and financial expert. Buy secure and inexpensive business cheques online by visiting Cheque Depot’s website at http://www.chequedepot.com

Category: Finances
Keywords: secure, cheques, cheque fraud, check fraud, protect, finances, business cheques