Every year, businesses lose billions of dollars due to check fraud. The National

Question

Every year, businesses lose billions of dollars due to check fraud. The National Check Fraud Center has published a document online that summarizes, among other things, the various types of check fraud and steps that business owners and managers can take to reduce check-fraud losses. Access the URL given above, read through the document, and then answer the following questions: Visit URL:http://www.ckfraud.org/ckfraud.html (Links to an external site.)Links to an external site. Answer the following questions accordingly.

1.What is check fraud? How has computer technology made check fraud easier?

2.What are the four major types of check fraud listed here? For a business, how does forgery typically take place? What is “paperhanging”? What is “check kiting”?

3.The document lists sixteen “signs for bad checks.” What are some of these signs?

4.Scroll down the document to the section titled “Check Fraud Tips for Businesses.” What form of business checks “appear to be a favorite” with respect to check fraud?

5.When ordering checks and deposit slips, what are some tips that business managers can follow to curb potential check fraud? What other tips for businesses are listed here?

Explanation / Answer

1.What is check fraud? How has computer technology made check fraud easier ?

Copying to create or duplicate an actual financial document is check fraud. Iy can be due to counterfeiting through desktop publishing, as well as chemical alteration consists of removing some specific information or all of the information. By such a manipulation it can benefit to the criminal. Victims can be any financial institutions, individuals or businesses who accept checks and issue checks.Many a times such crimes begin with the theft of a financial document.

With fast technologies, now It can be done as easily as someone stealing a blank check from ones home or from vehicle during a burglary. Also via searching for a canceled or old check in the garbage it can be done as latest softwares and scanners made it easy.

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