Cheque fraud almost always occurs because a cheque has been written incorrectly.
In November 2006, Fair Go reported that a man sent a cheque for nearly $34,000 to a packaging company. The cheque was stolen and deposited into the thief's account. The words "or bearer" had not been crossed out on the cheque. Westpac, the bank involved, eventually paid out even though it wasn't legally obliged to do so.
Then there's the case of a $20,000 cheque being stolen and deposited into another account. Two parallel lines were drawn on the cheque, but the words "Not Transferable" were missing. The bank decided not to refund its customer as it wasn't legally liable.
The message is clear: if you don't fill out a cheque correctly and it's stolen, only you and the criminal (if they're caught) are liable.
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