Is It Legal To Write On Us Money

As an economic-crimes detective, I've had many of my discussions with friends turn to the risks associated with modern payment methods. It's not unusual for someone to proudly proclaim, "That'south why I only use checks and cash!" But they're shocked when I tell them at that place are probably more dangers associated with using checks, especially when they're written to a business or unfamiliar person, than with most digital wallets or other payment apps.

Prototype source: Getty Images.

All the information fit to steal

A bank check is a treasure trove of information for fraudsters. Call up about all the personal data you want to hide from thieves and and so call up about what'due south printed on the front of your personal checks: names, addresses, the banking institution, the banking concern's routing number, and the check holder's account number. Even worse, when writing a check at a retail location, you lot may be required to write your driver license number on the forepart of the bank check; in a few states it'due south the cheque writer'south Social Security number.

With admission to this data, thieves can pay for items online with just the account and routing numbers. Many prepaid cards tin likewise have coin transferred to them from a bank account by using the same data. That's to say nothing of the risks of identity theft or an account takeover one time this information is compromised.

When you lot write a check to a business at the signal of sale, it's more often than not handled by several employees earlier being deposited. It's virtually impossible to know how many people volition meet any item check before information technology's finally deposited.

Each person who sees the check is a potential weak link in its chain of custody. Remember: All i has to practice is have out a smartphone and snap a quick moving picture of the cheque to have admission to all the information it carries. It could be done in less than five seconds, and no one would always know.

At this signal, some readers might be thinking they're safety considering they don't write checks at merchant locations; they just employ checks to pay bills. But placing a bank check in the mailbox and flipping the little red flag up is but every bit dangerous. A thief tin roll by and steal an envelope from an unsecured mailbox in no time.

Finally, the worst matter about using checks is the same trouble one runs into when using debit cards: If at that place's a dispute when fraudulent transactions are performed, it's your money that's missing, not the bank'due south. Yous'll detect yourself in the very stressful position of fighting to go back all the money that was originally in your business relationship. In the meantime, previously written checks might bounce, and scheduled withdrawals could accrue overdraft fees.

In other words, the legal protections that are in place for credit card use are missing when it comes to checking account fraud. Checking account holders accept only two concern days after receiving their statement to study fraudulent transactions, or they could be liable for upwardly to $500. If a victim fails to do and then more than sixty days after receiving a statement, then they might exist personally liable for all the money missing from their account. This could mean serious trouble for most Americans. In an online consumer poll conducted past Statistic Brain in Dec 2015, 79% of respondents claimed they rarely or never balanced their checkbooks.

What you can do

If y'all must employ checks, however, here are a few pointers to aid you avert getting defrauded:

1. Limit your check writing as much as possible. If at all possible, don't write checks at retail locations where several people might have access to each check. Auto-pay your bills online and then that the coin is directly withdrawn from your checking account each month. Limiting the number of checks written each month is of paramount importance.
2. Only write checks to people you personally trust. A cleaning lady who's been helping out for several years can probably be trusted. A $25 altogether check to a dear niece or nephew is fine. But if you're paying a tree trimmer in an unmarked truck whom you've never seen earlier? Try to find another way to pay. Make a quick run to the ATM or come across if the person can accept credit card payments or money transfers via a platform such as PayPal.
3. When paying bills with checks via mail, don't leave the cheque in an unprotected mailbox in front of the business firm. Drop it off in a USPS mailbox or at the post office.
4. Never carry around a checkbook in a purse or pocketbook. The risk of losing it or having information technology stolen is just too slap-up.
5. When writing a check, try to use a pen that can't be erased with common elements such as nail polish remover. For example, the ink in Uni-Brawl's 207 gel pen contains color particles that become trapped in the paper, making information technology extremely difficult to erase.
6. No matter what, account holders should reconcile their statements with their checkbooks every single month. Immediately report whatsoever suspicious activeness or unfamiliar withdrawals to your depository financial institution.

Following these guidelines will profoundly reduce the risk that your account is compromised through written checks.

Source: https://www.fool.com/investing/2017/01/29/how-writing-personal-checks-can-expose-you-to-frau.aspx

Posted by: codyaffecen.blogspot.com

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