Check Fraud

Click here for a Consumer Checklist to Avoid Check Fraud

Check fraud... is a multi- billion dollar criminal enterprise... and, growing. From consumers to companies ... we're all vulnerable. It's an easy crime to commit...and time-consuming to prosecute. But, police today are warning us to take action to protect our accounts. News Specialist Jed Boal has story. Jed...

Three-forths of all financial transactions in the U-S are taken care of by check.. On the average, four to five people will touch this check before it is entered electronically... That's a lot of people...touching a lot of paper...and we pay the price. That's a big bogus check with my name on it... If I used a fake name...I just might get away with it. Criminals have caught on and they're cashing in...

DAVE LAKHANI/CEO CREATE-A-CHECK: IF YOUR ACCOUNT IS IN GOOD STANDING, IT'S GOING TO BE PRETTY SIMPLE FOR THEM TO PASS THAT CHECK.

Dave Lakhani runs a Salt Lake company that aims to help businesses beat check fraud. He says we're making it far too easy for the forgers.

Dave Lakhani/CEO Create-A-Check: EVERYONE'S VULNERABLE REALLY. PEOPLE WHO WRITE CHECKS ARE VULNERABLE TO HAVING THEIR INFORMATION STOLEN AND FRAUDULENT CHECK CREATED ON THEM. BUSINESSES ARE VULNERABLE TO ACCEPTING THOSE CHECKS.

As an individual you're vulnerable any time you take out your checkbook. Print that account number on new checks and cash many...quickly. Businesses run a greater risk of getting burned..

CHECK FRAUD? I'VE SEEN IT...laughs.

Bernie Warburton runs a specialty welding company. He's been scorched for more than 50-thousand dollars...several different ways. Checks stolen from his mail box...one employees used pre-printed company checks... another simply copied the company account information off a paycheck...

Bernie Warburton/Precision Casting Repair: THEN THEY HAVE ACCESS TO YOUR ACCOUNT NUMBER, YOUR SIGNATURE AND ALL THE PERTINENT INFORMATION TO ELECTRONICALLY DUPLICATE CHECKS AND PASS THEM ALL OVER TOWN.

He keeps a close eye all checks today... and doesn't take any chances. Nationwide individuals, businesses and banks are stripped of 12 billion dollars each year...that's triple the toal five years ago. Police in South Salt Lake have seen check fraud rise with the drug trade.

Det. Robbin Wilkins/South Salt Lake P.D.: A LOT OF TIMES WHAT I SEE IS THAT IT'S DRUG RELATED...THEY NEED MONEY. THEY ACCESS YOUR INFORMATION AND THEY RUN WITH IT.

To protect yourself...guard your account information closely...and shred documents with important information...or at least tear them up.

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