Reading Skills 2: Preventing Check Fraud

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CHAPTER29 Checking Accounts

Reading Skills 2: Preventing Check Fraud

DIRECTIONS: The following article describes ways to prevent check fraud. Read the article, then answer the questions that follow.

Both the bank and the account holder share the responsibility of guarding against check fraud. If you find your records and the bank’s records don’t match, or if you suspect any unauthorized activity in your account, call your bank immediately. Keep in mind that if you fail to notify the bank in a timely manner, your rights may be limited. A few ways to safeguard your account are as follows:

Don’t use cellular or cordless telephones to conduct transactions with your bank. Confidential information may be intercepted over the airwaves without your knowledge.
Be cautious about giving out your account number. If you give your account number to a third person to initiate a transaction, you may be liable for any transactions initiated by that person, including and beyond the transaction you intended to authorize.
Never leave unused checks out in the open or in an easily accessible location.
When discarding checks, make sure they are properly destroyed to prevent someone from copying and using them.
Notify your bank of any changes of address. Otherwise, the bank may send statements and notices to your old address. Most checking account statements come with cancelled checks, which could potentially be copied and used.
Promptly and carefully review your statement. Be sure to look carefully at out-of-sequence checks and checks made payable to cash. Report any problems immediately.
If you report missing, stolen, or unauthorized checks, your bank may recommend that you close your current account and open a new one.
If you report a forgery, alteration, or unauthorized transaction that has occurred on your account, you should cooperate with your bank in the investigation and prosecution of your claim and any attempt to recover funds.

Whose responsibility is it to guard against check fraud?
Why shouldn’t you use cellular or cordless phones when making transactions?
Why should you be very cautious about who you authorize to initiate an account transaction on your behalf?
What types of cancelled checks should you pay special attention to when you receive your bank statement?
What might the bank recommend doing if you report stolen or missing checks?