Guide 2 Identity Theft
Books
Shredders
Basic Information
What is Identity Theft
How It Happens
Types of Identity Theft
Warning Signs
Commercial Identity Theft
Access Codes
Watch Out For
Credit Card Risks
Public Records
Debit & ATM Cards
Passports
Spoofs & Phishing
Stolen Checks
Unsolicited Card Offers
Security Tips
Credit Reporting Agencies
If Your Identity Is Stolen
Secure Passwords
Links
Guide 2 Identity Theft > Stolen Checks
What to Do If Your Checks Go Missing
Checks have become less common in recent times, for a variety of reasons, including:-
- Most people find credit and debit cards more convenient
- Credit card
companies often offer incentives to use them, in the form of cash-backs,
points systems, and other bonus schemes that checks do not offer
- Electronic funds transfers, often automated, are usually an
easier way to pay bills
- Checks are manually processed, which may incur bank
handling charges
- In some places, checks in some places incur fees and
taxes (e.g. stamp duty) which may not apply to more modern
payment methods
- Checks are less secure than other forms of payment
and therefore may be less readily accepted
- Checks can take some time to clear
An identity thief in possession of your check book, and some form of proof of identity in your name, which he has also stolen from you, is all set to go on a shopping spree at your expense. With practice, the thief will probably be able to forge a sufficiently passable signature to get by at a busy shop, especially if it just has to match the faded one on your stolen credit card. Provided the thief acts in a credible manner, and chooses businesses that still accept checks, your bank account will quickly be cleaned out.
Even if your credit card has been cancelled, it can still be useful to a check-thief to use as proof of identity. This is because the card is never actually used. Retailers who accept cards as proof of identity often just note down the card number as a way to follow-up if there is a problem, and compare the signature. Of course, a card bearing your photograph would be much more difficult for thieves to use in this way.
It is not uncommon for a thief to leave you with your check book but to just tear out a few checks from further down the book. This can happen if the thief only gets possession of your check book briefly. You are unlikely to notice. If the thief takes other things at the same time and you detect the theft, you will probably put your effort into canceling missing credit cards, or dealing with whatever else has been stolen, but you may ignore doing anything about your checks because your check book is still there. The thief may then wait a month or so before using these stolen checks, until after the heat has died down. You may not even immediately notice several spaced out transactions for modest amounts coming out of your bank account.
If you believe you have lost your check book, or any individual blank checks, you should report this immediately to your bank, and put a stop on these checks. It is worth it, even if there is be a bank fee to do so. Of course, you can avoid the problem in the first place by ensuring that your checks are kept secure at all times.
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