Shine a Spotlight on Cheque Fraud


Cheque Fraud

Cheque fraud is a major problem in the UK. The value of losses caused by fraudulent activity reaches millions of pounds each year. The majority of attempted cheque fraud is stopped before cheques are paid. The industry continues to concentrate efforts on identifying it through fraud prevention systems.

Types of cheque fraud 

There are three main types:

Counterfeit – copy cheques printed by various methods on non-bank paper to look exactly like genuine cheques and drawn by a fraudster on genuine accounts.

Forgery – a genuine cheque that has been stolen from an innocent customer and used by a fraudster with a forged signature.

Fraudulently altered – a genuine cheque that has been made out by the genuine customer, but a fraudster has altered the cheque in some way before it is paid in, e.g. by altering the beneficiary’s name or the amount.

Cheque Fraud Statistics

Figures released on 27 March 2015 show that losses fell from £27.5 million in 2013 to £17.8 million in 2014.

Cheque Fraud Table

* Due to rounding, the sum of separate items may differ from the totals shown.

Total cheque fraud fell by 35% in 2013/2014 and represents the lowest ever loss since records began. The overwhelming majority of attempted fraud is stopped before the cheque is paid and the industry continues to concentrate their efforts on identifying cheque fraud – particularly through the use of fraud prevention systems.

Angela Thomas, CEO of C&CCC commented:

“The publication of new fraud figures that show a year on year decrease of 35% in losses.  Whilst this is a positive development, there is no room for complacency in this area and we will continue our ongoing fraud prevention work to ensure cheques remain a viable, secure and efficient choice of payment for all users.”

Preventing fraud

The Cheque Printer Accreditation Scheme (CPAS) help combat fraud by requiring that all bank customer chequebooks are printed to the highest security standards. All cheque printing companies must be accredited to this Scheme. Security features on cheques are particularly effective in combating both counterfeit and fraudulently altered cheques. CPAS is managed by the C&CCC.

(Source: C&CCC, 2015)

Kalamazoo Direct’s Secure Cheques

One way of protecting your organisation against cheque fraud is to use secure cheques. Our cheques far exceed Cheque & Credit Clearing Company (C&CCC) standards in order to help minimise the risk of fraudulent alteration and duplication.

Thousands of satisfied customers are testimony to the quality of our secure cheques; this is backed up by over 50 years experience as a leading cheque provider.

Our expert guidance will ensure that your customised cheques fully comply with C&CCC requirements and protect your organisation from the risks of fraud. We are a C&CCC accredited security printer and hologram applier, giving you complete peace of mind.

To find out more, click here.

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