Cheque security
In 2007 the banking industry lost £33.5 million due to cheque fraud.
In November 2007, the introduction of certainty of fate changed the way that cheques are processed. This means you can now be sure that after a maximum of six working days (after paying in a cheque or banker's draft) the money is cleared and you are protected against any loss if the cheque should turn out to be fraudulent.
Despite this change, it is still possible to fall victim to cheque fraud, which could result in serious financial loss and spell potential disaster for your business.
However, by following some simple guidelines, you can help to reduce cheque fraud and safeguard your company and your money.
Here's what you can do:
- keep your cheque book in a safe place and don't tell anyone except authorised signatories where it is kept
- when posting cheques take extra precautions and ensure window envelopes do not reveal the contents
- always witness cheques being signed, even by authorised signatories
- be wary of accepting cheques or bankers' drafts if you don't know or trust the person offering them to you – particularly if they are of high value. For more information visit oft.gov.uk.
- when filling in a cheque always use permanent black or blue ink to help prevent it being altered
- write out the full amounts in words.
Consider other payment options:
In order to reduce the likelihood of you falling victim to cheque fraud, we suggest where possible, when making or receiving large payments to consider using alternative payment methods. We offer a range of safer and easier services including electronic funds transfers such as BACS or CHAPS payments.
