How to Alter a Check and Its Legal Consequences

Checks serve as fundamental instruments in financial transactions, allowing individuals and businesses to transfer funds without physical currency. A check is a written, dated, and signed document instructing a bank to pay a specified sum of money from the drawer’s account to the payee. While checks offer a tangible record of payment for accounting and tax purposes, their susceptibility to alteration introduces significant risks. Altering a check is a serious act with substantial legal and financial repercussions.

What Constitutes Check Alteration

Check alteration involves any unauthorized change made to a check’s original terms after it has been issued. This can include modifying the payee’s name, the amount, the date, or even the signature. Such changes are made with the intent to defraud the recipient or the bank.

A perpetrator might add extra zeros to a numerical amount or change a payee’s name by adding letters or making slight adjustments. More sophisticated methods include “check washing,” where chemicals are used to erase the original ink, allowing new information to be written in. These actions transform a legitimate financial instrument into a fraudulent document, leading to financial losses and legal issues.

Legal Ramifications of Altering Checks

Altering a check carries severe legal consequences, falling under criminal charges such as forgery, fraud, and sometimes counterfeiting or larceny. These offenses are prosecuted at both state and federal levels, particularly if they involve multiple victims, interstate activities, or identity theft. The penalties for check fraud vary depending on the amount of money involved and the specific jurisdiction.

Misdemeanor charges involve smaller amounts, often under $1,000, and can result in up to a year in jail and fines. Felony charges, which involve larger sums, can lead to imprisonment for several years, ranging from 2 to 15 years, and substantial fines that can reach tens of thousands of dollars. Individuals convicted of check fraud may be required to pay restitution to the victims.

Correcting Errors on a Check

Correcting an error on a check is permissible only under specific circumstances, and it is advisable to avoid making any changes if possible. The safest method for correcting a mistake, such as writing the wrong amount or payee, is to void the incorrect check entirely and issue a new one. This practice eliminates ambiguity and reduces the risk of the check being rejected or flagged for fraud.

For minor, unintentional errors, such as a wrong digit in the date or a misspelled name, some banks may accept a correction made by drawing a single line through the error, writing the correct information, and initialing the change. However, this method is discouraged by financial institutions, as it can raise suspicions of alteration. Using a blue or black indelible ink pen for any corrections is recommended to ensure permanence and visibility. If the numerical amount and the written-out amount on a check differ, the written-out amount is legally considered the correct one.

Detecting and Preventing Check Alterations

Detecting altered checks involves vigilance. Common indicators include mismatched handwriting or ink types, smudges, discoloration, or signs of erasure on the check. The magnetic ink character recognition (MICR) line at the bottom of the check should also be inspected for inconsistencies, as altered MICR ink may appear shiny or feel raised. Any discrepancy between the numerical and written amounts should also raise a red flag.

Preventing check alterations requires implementing best practices when issuing checks. Always use indelible ink, such as a black gel pen, which is more resistant to chemical washing. Fill in all fields completely, starting at the far left, and draw a line through any remaining blank spaces to prevent additions. Store blank checks securely to prevent theft and promptly reconcile bank statements to identify suspicious activity. Opting for checks with security features like chemical voids or watermarks adds a layer of protection.

Responding to an Altered Check

If you discover that a check you issued has been altered, immediate action is necessary to mitigate losses. Contact your bank or credit union without delay to place a stop payment on the altered check. File a police report to document the fraudulent activity. Inform the intended recipient of the check about the alteration and coordinate with them on issuing a replacement.

If you receive a check that appears to be altered, refrain from attempting to cash or deposit it. Contact the issuer directly to verify its authenticity. If confirmed fraudulent, report the incident to your bank and law enforcement authorities. Consumers have a timeframe, up to one year, to report an altered check to their bank for reimbursement, though reporting within 30 days is recommended. Banks are liable for altered checks unless customer negligence contributed substantially to the alteration.