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Stolen and forged checks can be a sign of identity theft, especially if the thief has accessed your personal information, including your social security number. If your checkbook is stolen and your checks are forged, you may be held liable for the forged checks, as financial institutions typically do not offer liability protection for forgery when it comes to checks. Therefore, it is important to protect your checks to reduce the chances of forgery and identity theft. What is Checking Account Fraud? Checking account fraud is one of the most difficult kinds of financial identity theft to correct. If you are a victim of checking account fraud, getting the situation resolved isn’t easy, but it can be done if you stay highly organized. First, it is important to identity the specific type of checking account fraud you have experienced:
- Check washing: Checks are chemically washed so that new information can be entered onto them.
- Check theft: The thief uses stolen checks or attempts to cash someone else’s check.
- Checking account takeover:Information of a thief is added to your account so they have access to it.
- Check counterfeiting: A thief will create checks that mirror those belonging to your account.
What to Do if Your Checkbook is Stolen In the event that your checkbook is stolen, it is important to promptly notify your bank so that payment can be stopped on all stolen checks. You should then open a new account, but keep the old account open so that outstanding checks can clear. If your driver’s license number is included on your checks, research whether the Department of Motor Vehicles in your state will allow you to change your number. If you are notified that fraud has occurred in regards to your stolen checkbook, request that creditors send you a confirmation letter. Contact your local law enforcement to report the fraudulent activity, and insist on filing a report and getting an assigned case number. This may be helpful later on as you combat the effects of identity theft. Preventing Check Fraud and Forgery If you use checks, it is important to follow some tips that will help to protect you from personal check forgery and fraud. - Utilize identity theft monitoring, and check your credit report frequently to look for inaccuracies or signs of ID theft.
- Keep your social security card in a safe location, and never carry it in your purse or wallet. Do not include your social security number on your checks.
- Review your credit card statements, monthly bank account statements, and other bills to search for unauthorized charges.
- Only carry the personal identification you will need with you, and store the rest in a secure location or shred documents that you will not need.
- If you are asked to verify your credit or bank account number and password, do not give out any information. A legitimate company will not request this information in this manner.
- If you are asked for personal information that does not seem appropriate for a transaction, ask the company how that information will be used. Always question a company’s information sharing and protection policies.
- Limit the information that is provided on your checks. If possible, don’t put your driver’s license number on your checks, and consider only having your first initial instead of your whole first name.
- Maintain a list of your bank accounts and credit cards, including credit limits, expiration dates, and account numbers.
- Eliminate your usage of checks by turning to online banking, which in many ways is a safer option than traditional checking. This option is also less time consuming and will save you money on postage and ordering checks.
- Only write checks to trustworthy companies and businesses, and either hand deliver them or mail them in a secure manner.
While traditional checking is becoming less popular, checking account fraud is still a major concern. If your checks are stolen or accessed by an unauthorized individual, you could be the victim of identity theft. By taking proper steps to keep your information secure and only using checks hen unavoidable, you can minimize your chance of being an identity theft victim.Amy Johnson is an active blogger who is fond of writing articles on Credit Protection and educating people to take immediate measure if your card is lost or stolen before someone take advantage of it. Follow her on Twitter to know more on how stolen check can be the cause of identity theft.
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