How Cheque Scams Work
There's more than one type of cheque scam. It can be as simple as a cheque drawn on an account that no longer exists, or one where the writer knows there are insufficient funds to cover the cheque. You won't find out for a few days, until it's gone through the clearing system and has been returned to your bank. By then you might have dispatched the goods for which you'd been paid.
There are also forged cheques and bankers' drafts, in which the original amount of the cheque has been altered (this is similar to the advanced-fee fraud, or Nigerian scam). You'll be overpaid for an item or service with the forged cheque, and asked to give the writer the overage. You do so, only to discover several days later that you're a victim.
Perhaps the most typical scam is the stolen chequebook. Once stolen, cheques are written on the account, and the holder might not know until receiving a phone call from the bank about the activity, trying to withdraw money only to find none remains, or until he receives his monthly statement.
Got a text, call, email or offer that feels off? Paste it in below and we will tell you how scammy it looks, the warning signs to spot, and exactly what to do next.
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- Don't accept a cheque or bankers' draft as payment unless it's from someone you know well and trust. Be especially careful if the cheque is for a high-ticket item.
- If you're selling a high-value item, insist on Internet or telephone banking instead of a cheque. Another alternative is to use CHAPS. You have to pay (or can arrange to split costs with the other party), but it's very secure, and payment is same-day, rather than the usual clearing period.
- If you choose to accept a cheque, insist on waiting until it's fully cleared and you're sure the money is legitimately in your account.
- Keep your own chequebook in a safe place and report any missing cheques to your bank immediately. Always check your bank statements thoroughly.
Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.
What To Do If You're A Victim Of Cheque Fraud
Contact your bank and the police immediately. If your chequebook has been stolen, your bank will refund you the amount. However, if you've accepted a fraudulent cheque or money order, your bank is likely to reclaim the funds.
How Long Does A Cheque Take To Clear?
Generally, a U.K. cheque takes three days to clear, not counting weekends or bank holidays. On the day it's paid into an account it's sent to the bank's clearing centre. The second day it's sent, electronically and physically to the drawer's bank, and on the third day the money is debited from the drawer's account. However, if the drawer's bank is unable to pay the amount (e.g. insufficient funds) it will be returned by first-class post to the collecting bank, which will not receive it until the fourth of fifth day. So, if you accept a cheque, allow five full working days for it to clear.
The one i have here is completely fake, it has no perforated edge (bit dodgy) it is larger than a standard cheque (exactly 1/3 of a page of A4, with a little skimmed off one edge to make it look perforated) , it comes from the Ukraine but from an (supposed) English bank, it is made out from bradford and bingley, which changed its name to santander last year, it is for exactly 4 times what it would cost for a week, It is signed by someone called Rosemary Thorne (a very Ukranian name if you ask me), plus the cheque is dated 30/09/2011 and was posted on 03/11/2011 over a month later, and for some reason 2 different banks are named on the cheque, 1 is part of santander and one is part of the cooperative bank group.
This is just too suspect. but at least they got a real bank sort code on the cheque! Lol this will get handed into the police with transcripts of the emails I have received although I know they can do nothing as no fraudulent activity has gone on because the cheque has not been cashed.
Its easy to spot a forgery if you have a real cheque there but if not ask around and look for trends e.g. size of the cheque in comparison to A4 (should be 1 inch or so shorther than the width of A4), perforated edge, if there is an address type it onto google streetmap, check the sort code on the net and whatever you do DO NOT CASH IT!
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