Important Security Points When Using Checks

 

We know you frequently use checks in your commercial transactions. Therefore, while developing our "check tracking" feature, we also wanted to share critical warnings about the risks of fraud that can be encountered in check transactions.

 

Things to Consider When Issuing a Check

 

Don't just leave the amount in numbers; always write it out in words as well.

The amount on the check should be filled in both numbers and words. In practice, the "words" section is often left blank. However, malicious individuals can use this blank space to alter the amount. When the amount is written in both numbers and words, even if the number section is altered, the amount written in words will be considered the correct amount, significantly reducing the risk. Close blank spaces with a line.

After writing the amount in numbers and words, you can fill the remaining spaces with a single line to prevent additions later. Always keep a copy of the check you issue.

 

Things to Consider When Receiving a Check

 

Check the authenticity of the signature

If you don't recognize the issuer's signature, it's important to request a signature specimen to verify that the signature is indeed the issuer's. Investigate the company's reliability for post-dated checks

Although a check isn't a deferred payment instrument, it's frequently used in practice with a post-dated date. However, some businesses may change their company representative before the presentation date, and the new representative may object to the old signature. To protect you legally against this possibility, preparing an additional document containing the check information, issuance and payment dates, and signature will serve as evidence in a fraud complaint if necessary. Be present when the check is signed

Ensure that the signing process is done in your presence when you receive the check. This eliminates the possibility of someone else signing it. Similarly, if a photocopy of the check is to be made, being present at this stage will prevent the document from being altered. Find out about the company issuing the check and its representatives.

Investigate the persons authorized to represent the company on the date the check was issued and be present at the time of signing. If the company's articles of association stipulate "borrowing with two signatures," you must obtain the signatures of both authorized persons. The representative makes a commitment on behalf of the company by signing over the company stamp; a second signature over the stamp does not create personal liability. However, an additional signature made independently of the stamp may make the signatory personally liable.