How to Spot, Avoid, and Report Fake Cheque Scams: Essential Tips and Warning Signs

21 August, 2024

Synopsis

• Fake cheque scams involve the distribution of counterfeit cheques to deceive individuals for financial gains.

• Knowing what to look for in a cheque can help you avoid potential cheque scams.

• Consider payment methods such as UPI, Credit Card or Debit Card to receive payments.
  
  

Scams involving fake cheques pose a significant threat to individuals and businesses alike. The ability to recognise these scams early on is crucial to avoid falling victim to financial fraud. These scams involve fraudsters sending counterfeit cheques with the intent to deceive victims into depositing them and sending back money before the cheque bounces. In this blog, we will delve into the ways to spot, report and avoid fake cheque scams.

What are Fake Cheque Scams and How Do They Work?

Fake cheque scams are a type of counterfeit cheque fraud. In this scam, fraudsters will alter specific details to make the fake cheques look convincing.

You may receive a fake cheque from a fraudster which may initially appear legitimate. However, you may discover that the cheque is fake only after you have deposited it in the bank. This may cause you significant financial losses, potential legal issues and emotional distress.

How to Know if a Cheque is Legitimate?

When you receive a cheque, you ought to know the ways to identify fake cheque red flags to avoid potential fake cheque scams. Banks must follow guidelines outlined by the NPCI for printing cheques. They are as follows:

• CTS-India Watermark: Per National Payments Corporation of India (NPCI), all cheque forms should carry a watermark with the words ‘CTS-INDIA’. When you hold a cheque leaf against a light source, this watermark should be visible. CTS stands for Cheque Truncation System.

• Void Pantograph: Legitimate cheques are embedded with the word ‘VOID’ hidden at the lower left corner of the cheque. If a scammer tries to photocopy the cheque, a rectangular void will appear on the copy.

• Ultra-Violet Bank Logo: The bank logo must be printed on the upper left corner of the cheque leaf. One way to establish the genuineness of the cheque is by checking if the logo is visible under ultraviolet light.

• Micro Lettering: All cheques should have their bank names printed in micro-lettering which can be visible with a magnifying glass. If you look closely at the line above which you write the payee’s name and the amount, you can see your bank’s name in extremely tiny font size.

• Rupee Symbol: Banks are required to print the rupee symbol in the amount field.

• Printer Name: All cheques are required to have the printer name along with CTS-2010 to establish CTS 2010 compliance.

• Account Number Field: The account number of the account holder must be pre-printed in the account field. Alternatively, banks can use rubber stamps for imprinting the account number. You are not allowed to hand-write the account number.
  
  

How To Report Fake Cheque Scams

Here is how to report such scams:

• Contact Your Bank: Immediately inform your bank about the suspicious cheque.

• Contact the Local Police: If you believe you have been targeted by a fake cheque scam, report the incident to your local police station.

• File a Complaint with the Cyber Crime Cell: Many fake cheque money transfer scams originate online or involve digital communication. In such cases, file a complaint with the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or the Consumer Complaints Portal (www.consumerhelpline.gov.in).
  

Stay Informed and Vigilant to Combat Scams
By staying informed about the tactics used by fraudsters and remaining vigilant for red flags, you can significantly reduce the risk of falling victim to these scams. Additionally, it is essential to verify the legitimacy of any cheque received, especially if it is from an unfamiliar source. Take proactive measures to combat fake cheque scams and safeguard your financial well-being.

*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.