What Does an Altered Check Mean and What Should You Do?

An altered check refers to a legitimate check that has been fraudulently modified after its original creation and signing by the account holder. This type of check fraud involves unauthorized changes to critical details, presenting a significant risk to financial security. Understanding the nature of these modifications is an important step in protecting oneself from potential financial loss.

Understanding Altered Checks

An altered check is distinct from a completely forged or counterfeit check, as it begins as an authentic instrument before being tampered with. The fraudulent modifications can involve changing the payee’s name, the monetary amount, the date, or even elements of the signature, if the signature itself is manipulated on an otherwise valid check. These changes are made with the intent to deceive and unlawfully obtain funds.

Criminals employ various methods to alter checks. Common techniques include chemical washes, which use solvents to erase ink from specific areas, or physical erasures that scrape away printed information. Fraudsters may also add numbers or words to incomplete fields, such as increasing the numerical value or extending the payee’s name, to change the original obligation of the check.

Recognizing Alterations on Checks

Identifying an altered check involves a careful inspection for visual discrepancies that signal tampering. One common sign is mismatched ink colors or different pen types used on the same check, indicating that parts of the information were added or changed. Evidence of erasures, such as smudges, paper thinning, or disturbed paper fibers, can also point to an alteration.

Different handwriting styles within the check, especially between the written and numerical amounts, should raise suspicion. Unusual spacing between numbers or words on the amount line or payee line might suggest additions. Chemical stains or discoloration on the paper can also be tell-tale signs of washing attempts.

Checks also incorporate various security features designed to deter fraud, which can appear compromised if altered. Microprinting, tiny text visible only under magnification, may be blurred or unreadable. Watermarks, typically embedded in the paper and visible when held to light, should appear clear and consistent; any distortion could indicate an issue.

Actions for Altered Checks

If you receive a check that you suspect has been altered, it is important not to deposit or cash it. Attempting to process a known altered check could potentially implicate you in fraudulent activity. Instead, you should immediately contact the check’s issuer to verify its authenticity, if their information is known.

Promptly reporting the suspicious check to your own bank is a crucial next step, providing them with all available details and seeking their guidance. Banks can refuse to honor a check if they believe it has been altered. Under the Uniform Commercial Code (UCC), customers have up to one year from the bank statement date to report an altered check to their bank, though reporting within 30 days is advisable.

For individuals who discover one of their own checks has been altered and fraudulently cashed, contacting their bank immediately to stop payment on the altered check is the first priority. It is also important to file a police report with your local law enforcement agency. Obtaining a copy of this report is beneficial for your bank and any potential insurance claims.

Both recipients and issuers of altered checks should document all communications regarding the incident, including dates, times, and names of individuals spoken to. Keeping copies of the altered check, if safely possible, along with relevant bank statements, aids in the investigation and recovery. Federal agencies such as the Federal Trade Commission (FTC) or the U.S. Postal Inspection Service (USPIS) also accept reports.