Types of Check Frauds

Check kiting or cheque kiting is a form of check fraud, involving taking advantage of the float to make use of non-existent funds in a checking or other bank account. In this way, instead of being used as a negotiable instrument, checks are misused as a form of unauthorized credit.

Check fraud occurs when someone steals your actual checks or reproduces them and is then able to cash those checks, pulling money right out of your bank account. How Does Check Fraud Work? There are many ways to steal checks.

Forgery (also known as "uttering a false instrument") is a serious offense, punishable as a felony in all fifty states and by the federal government. Forgery involves the making, altering, use, or possession of a false writing in order to commit a fraud.

Combating cheque fraud In most jurisdictions, passing a cheque for an amount of money the writer knows is not in the account at the time of negotiation (or available for overdraft protection) is usually considered a violation of criminal law.