The industry is fighting fraud through the Cheque Printer Accreditation Scheme which lays down security standards for printing cheques to protect against counterfeiting and fraudulent alteration of cheques. In addition, the Dedicated Cheque and Plastic Crime Unit, funded by the banking industry targets organised criminal gangs heavily involved in counterfeiting.

The banking industry continues to identify most fraudulent and stolen cheques as they pass through the clearing system before there is a victim, but there are several ways businesses can help to guard against fraud:

· Remember that, even after the value of the cheque has been credited to your account there is still a risk that the money could be reclaimed if the cheque turns out to be stolen or counterfeit.

· Consider other types of payment for high-value goods and services, or wait at least 7 days prior to shipment of goods to minimize risk, if the customer is unwilling, then seriously consider if you should be doing business with them.

· Be aware that banker’s drafts and building society cheques are not necessarily safe forms of payment, as the money may not be paid if they are found to be stolen.

· Always ensure you know the creditworthiness of your customers to minimise the risk of a bounced cheque as accepting a cheque for payment does not necessarily mean payment will be made - for high value payments consider using other payment types r).

· Pay cheques into your account straight away to reduce the risk of loss or theft.

Issueing Cheques

· Do not use post dated cheques as they may cause problems if paid in before the date shown by being returned unpaid or being cleared before you are expecting it.

· Always keep cheque guarantee cards and cheque books separate.

· Help prevent fraud by adding extra information on the payee line after the name such as invoice or contract numbers.

· Draw a line through unused space on the cheque to avoid unauthorised people adding extra details.

· Record details of cheques issued on chequebook counterfoils and carefully check against bank statements so discrepancies can be picked up and reported to your bank or building society.

· Try to allocate responsibility for issuing cheques and undertaking reconciliation with bank statements to at least two different people.