Business Math in Action

Double-Check That Check

The problem with money has been the same throughout history: people like to steal it. The ancients stored their gold and silver in temples, which were the biggest, most guarded buildings in town. Eventually the Greeks built banks where citizens could make deposits, withdraw cash, and take out loans. But it wasn’t until the 1500s in Holland that people began to use checks instead of cold, hard cash. Prior to that time, folks weren’t comfortable with the idea that little pieces of paper could represent their money.

Then, as now, counterfeiters printed fake checks and forged the signatures on stolen ones. In spite of these risks, people continued to use checks because it was easier than hauling bags of money around. Today we have high-tech ways to identify checks and catch counterfeiters. Yet check fraud-especially check “washing”- remains a serious problem. With a low-tech bottle of household cleaner, thieves can scrub off the ink and rewrite checks to themselves, raising the amount payable to thousands of dollars.

You can protect yourself against check fraud by taking the following precautions suggested by the National Check Fraud Center:

Do not leave outgoing mail in an unlocked box. Home mailboxes are where many thieves steal checks. Drop your mail in a mailbox, hand it to a mail carrier, or take it directly to the post office.

If you must leave outgoing mail in your box, do it just before the mail carrier comes.

Don’t leave mail in your box on Sundays or holidays.

Install a lock on your mailbox, or buy a box that comes with a lock.

Don’t have new checks delivered to your home through the mail. Ask your bank if you can pick them up in person, or ask them to use a parcel delivery service.

Don’t throw cancelled checks or financial records in the trash. Buy a paper shredder and shred them. If you need to save them, put them in a secure place.

Look over your bank statements as soon as you receive them. If you don’t report check fraud within 30 days of receiving your monthly statement, the bank does not have to reimburse your loss.

Use gel pens to write checks-their ink is the hardest to wash because it contains tiny particles of color that are trapped into the paper. Fountain pens with dark ink are more wash-proof than ballpoint pens.