Cheque fraud prevalent - Sabric

2012-07-23 15:49

Johannesburg - Bank customers should be wary of scams involving cheque fraud, the SA Banking Risk Information Centre (Sabric) said in a statement on Monday.

Despite the noticeable decline in cheque usage, various scams were being devised by perpetrators to defraud cheque users especially where business transactions took place, Sabric said.

A business would be approached with an urgent order and promised payment, supported by a cash deposit or proof of an electronic payment.

The payment would then be made with a fraudulent cheque, leaving the business out of pocket.

Sabric CEO Kalyani Pillay said it was crucial that payments be made in cash, or if by cheque the recipient should wait for the cheque to clear before releasing any goods.

The centre said: "In some cases, banks are noticing incidents where pages of business cheques are removed from cheque books and then presented by fraudsters for large cash withdrawals."

It was not unusual for staff at those businesses to collude with perpetrators, with directors' signatures forged.

"Sabric advises bank customers to keep their cheque books in a safe place at all times, and to immediately report lost and stolen cheques."

The centre advises keeping returned cheques in a secure place, completing payee details in full and writing the amount in figures as closely as possible, as well as including the account number in the payee line when making account payments.

Other advice includes using crossings appropriately, always marking crossed cheques "not transferable", regularly reconciling bank statements, and using alternative payment methods.


  • nadine.joubert.35 - 2012-07-23 16:13

    Why are people still using cheque's

      deabreu - 2012-07-23 18:50

      You would be surprised how suppliers demand cheques as proof of accounts. Sad but true that a cheque is used as proof that an account exists!

      Kevin - 2012-07-23 20:10

      You got me, my bank never even offered me a cheque book when I moved to them in 2009. When I am buying goods from small industrial companies, who are all online today, I simply excute an online payment.

      deon.louw.7505 - 2012-07-24 12:16

      The fraudsters still uses cheques. Some people tried to scam us too, but we did not fall for it. The deposit a cheque in you account and overpays the quote and ask for a refund, just wait 10 work days before you do anything. We were right the cheque bounced after 3 days.

  • simon.fernandez.39 - 2012-07-23 21:50

    Last year I had some cheques removed from my cheque book. Standard Bank called me to verify a cheque being presented. I told them I had not issued any. They ask what they should do, I said hold the person there, I will come to the bank immediately. When I got there they told me they could not hold the fraudster and that the person left. I reported a case of fraud but nothing happened since. Banks dont seem to be bothered about the interests of its customers.

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