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Check Forgery

Traditionally, check forgery (also check tampering) referred to the act of a third party falsely signing the name of the individual to whom a check was intended, which was generally followed by posing as the signed to obtain the funds. Advancements in forgery techniques have led to a broader definition in both the legal and the academic literature. Check forgery has been expanded to include any modification made to an original document or signed signature with ill intent to gain funds that were not intended to be received by the issuer. Some definitions may include the creation and/or completion of documents to be included as a form of forgery. This use of the term is not typical; such actions are generally considered to be a form of counterfeiting. The legal definitions and penalties of check forgery may vary by state. Under U.S. federal definition, forgery is an offense under the umbrella of fraud and is classified as a felony. This entry discusses the act of check forgery, the prevalence of the crime, what is known about offenders, preventive measures, and legal consequences.

Patterns of Check Forgery

Forgery is a crime specified by the Uniform Crime Report under Part II offenses, included with counterfeiting. The dollar amount, previously used to differentiate between a felony and misdemeanor, has been removed, so that all check forgery is considered a felony. The Uniform Crime Report is a record of police arrests submitted by police agencies across the country to the Federal Bureau of Investigation (FBI), who uses this information to analyze crime rates and trends for various crimes. Check forgeries, also referred to as check tampering, tends to be more of an issue between corporations and employees rather than an individual concern or a concern of a company being victimized by a party who is not an employee. Check forgery is a bigger problem for smaller companies with fewer employees than it is for large corporations or chains of stores. While the numbers of people who commit check fraud may be declining, the amount of money that each forged check is worth has kept the cost to businesses high.

The specific crime of check forgery consistently remains a significant form of fraudulent behavior. According to the Association of Certified Fraud Examiners' 2012 report, check tampering accounted for 14.9% of all fraud schemes in the United States in 2012, down from 16.9% in 2010. The median dollar amount lost to all forms of frauds in U.S. companies in 2012 was 120,000.

Check Forgery Techniques

A common act that falls under the heading of check forgery is simply writing a check when the funds are not available but with a future date by which time the funds will be deposited. It is worth noting that such cases are not often prosecuted because this action may not have ill will or intent of creating a loss to the bank. The interception of checks in the mail or modifications of the address to which the check will be mailed to write or alter a signature are also means by which check forgery can occur. Tools used to alter a check in a forgery attempt can include razor blades, ink erasers, printers, high-resolution cameras, and a variety of chemicals, to name just a few. As an example, a check may be made out to an employee with the correct name and dollar amount and then endorsed by an appropriate authority; but because the correct employee name and dollar amount were written in erasable ink, they are erased and rewritten to the offender's name for whatever dollar amount the offender believes he can get away with. In some cases, the offender may simply erase the ink, take a picture, digitally edit the numbers, and print a few checks for various dollar amounts. In some cases, a check forger may create the checks and then sell them to others who intend to use them to withdraw funds against a bank. The methods of check forgery are vast and constantly changing with advancements in prevention techniques and technology.

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