Although we tend to rely heavily on banking apps in this day and age, cheques still hold an important place in today’s world. Here are 8 effective ways to avoid cheque fraud.
With the advent of online banking, everything related to finance is only a few clicks away. However, despite the rapid rise in banking technology, there’s no denying the power of a cheque. Although we tend to rely heavily on banking apps in this day and age, cheques still hold an important place in today’s world.
You’re probably already familiar with the ways cheques can be misused. Imagine if your signed, blank cheque falls into wrong hands? Even the thought of something like that happening is enough to make you go weak at the knees.
Additional Reading: Know Your Cheque
To keep your fears at bay, here are 8 simple but effective ways to avoid cheque fraud.
Keep it safe
Make sure you store your cheque book in a secure place. Don’t leave it lying around on your office desk or at home. Whether it contains blank unsigned cheques, cancelled cheques or is completely unused, it is important to store it in a place where only you can access it.
Additional Reading: What Is A Cancelled Cheuqe?
Check the cheques
Awaiting a new cheque book? As soon as you receive it, make sure you check it thoroughly. Flip through all the leaves to ensure that not even one is missing.
Never ever sign a blank cheque and leave it lying around. It’s always advisable to sign it just before you hand it over to the concerned party.
Destruction is the key
If you have a cancelled cheque that you don’t need any more, or a signed cheque that you no longer have to deposit, destroy it and throw it away immediately.
Scribble over the cheque number and other numbers on the cheque. It’s even better if you have a shredder. Shred that piece of paper and worry no longer! If you close an account, get rid of all the unused cheques. Don’t forget to destroy them before discarding them.
Whenever you are writing a cheque to someone, be extremely careful. Always cross a cheque in the left corner, unless you need to make a cash transaction using the cheque.
Draw two lines and write ‘Account Payee’ across the top left corner. This means that the cheque can only be used to transfer money to another account.
When you write the name of the recipient, make sure you draw a line till the end of the blank space after the name. Don’t forget the prefix and suffix before and after the amount. Precede the amount with ‘Rs.’ and end it with ‘/-‘.
Additional Reading: Beware Of Bounced Cheques
Keep a record
Never ever forget to keep a record of all your cheques. Most cheque books have a page where you can write down all the details of drawn cheques. Whether it’s the date of issuance, the cheque number or the amount, make sure you pen it all down.
Inform your bank
If you accidentally misplace a cheque, inform your bank immediately. After all, better safe than sorry. For any drawn cheques that you may lose, inform your bank so that they can initiate a ‘Stop Cheque’ procedure.
Check your bank statement frequently
While it’s important to remember all the above-mentioned points, checking your bank statement regularly is an absolute must. Why you ask? Because your bank statement knows it all!
If there’s an unknown transaction, you can view it in your statement. You can track any fraudulent activities if you scrutinise your bank statement.
Additional Reading: What Is A Bank Statement?
Here’s a quick video that will give you a lowdown on all the important things that you need to know about a cancelled cheque:
Use of Cancelled Cheques
Now that you know how to avoid cheque fraud, check out some of our financial products that are sure to light up your world!