Criminal Defense

The Various Types of Check Fraud

May 04, 2022 by Madison Ferguson in Criminal Defense  
Thumbnail for: The Various Types of Check Fraud

Types of Check Frauds

Fraud has increased around the globe contributing to the revenue losses in many organizations. Among the most vulnerable areas for loss in the business is the misappropriation of funds and billing schemes.

Financial institutions are the most threatened businesses that are likely to face check fraud. For the methods of check frauds used, there are various methods, with some landing the loss to the consumer unknowingly.

Paper hanging

Account-holders may sometimes intentionally write bad checks in their account; this is paper hanging. These accounts may be new and only opened to meet the wrong credit business. Thus it is important for business owners to take into account and be careful when accepting new startups account.

The business should also observe the number of checks in the graft; those with fewer checks may not be genuine. Another form of paper hanging involves the writing of check-in accounts that are already closed with the knowledge that no amount of money exists in the account. Frauds in this category extend to overpaying, where fraudsters write a check for a higher amount than previously owed.

Check Kiting

This is an illusion created by a fraudster concerning two accounts. The accounts may belong to the same person or another person. A person may write a check from one account to another showing the same balance. This is an illusion since one of the accounts does not have any money. These people are likely to withdraw the cash and escape. Also, they may do some kite checks within the two accounts as they are trying to take advantage of float.

Check Floating

Fraudsters are now learning how to utilize float time. The business starts as early as writing bad checks and opening two accounts from where these mischievous activities happen. They also use a variety of schemes to achieve the check floating. It increases the chances of an over withdrawal from one account to another and opens room for errors if the process is repeated severally. It is up to the organization to come up with a tool that can detect check floating.

Check Forgery

Forging is a common act among banks. It involves writing your name on a check that is initially not yours and forging a signature on it. After the check is deposited into personal accounts. Check forgery extends to forgery of endorsement and picking someone’s full identity to cash the check through his bank.

Takeover of Accounts

Here a scam artist takes over the account of another person through an online account or visiting a bank branch with the pretense of being the owner of the account. During this time, fake checks may be drafted, and the kiting scheme is used to explore more opportunities for sourcing out money.

Check Theft

Similar to forgery, a person may steal a paper check and forge the owner’s signature. It may also include stealing account numbers, printing the checks, and using these checks to withdraw money from the account. It may also lead to counterfeit when check prints have been stolen.

Identification check theft

Here, a person may steal personal details belonging to someone else and open an account using these details. Eventually, they may begin to write bad checks using the account. Mostly these people evade being caught, and the victims suffer the loss of money and identity.

Scams on fake paycheck

These are people who scam the victim by promising a job, one that is rare and somehow secretive. A paycheck is sent to the victim, asking them to send details of his account. Additionally, the paycheck comes with some instructions on how to try a transfer service that the victim will be working on. As they send the check back, the check bounces, and the victim loses their money.


These are chemical alterations done on a check which washes away all the information on a check. The empty check is then printed in favor of the fraudsters, and new entries are made on the amount.

Deceiving lottery checks

Here the victims are deceived into having won a lottery; they receive a check for the winning in addition to the instructions for sending the transfer fees. However, the checks being used are usually fake, and thus the victim loses money.

Are You Being Accused of a Crime?

The sooner you call a lawyer, the better. You need an experienced lawyer to fight for your freedom and your rights.

Need a Criminal Defense Attorney? CALL NOW: 310-274-6529

Seppi Esfandi is an Expert Criminal Defense Attorney who has over 21 years of practice defending a variety of criminal cases.

Contact Us:         
Esfandi Law Group QR Code
Esfandi Law Group
Lara S.
December 3, 2019
Seppi had my case reduced to just an infraction, and thanks to him I was able to keep my job. Jorge was extremely helpful too, the reason I went with this law firm. Overall pleased.

How to Win Your Case

We cannot stress enough that you read, understand and follow these 10 basic rules if you are criminally charged or under investigation:

  1. Don’t ever talk to the police
  2. Do not discuss your case with anyone
  3. Everything you tell your lawyer is confidential
  4. Tell police you need to contact your attorney
  5. Never consent to any search by the police
  6. If the police knock on your door, don't answer!
  7. Realize the consequences of a criminal conviction
  8. Your lawyer (not you) will contact any witnesses
  9. Information on your cell phone is evidence
  10. Early Intervention is the key

Get a Free Consultation

    Free Consultation Form