What Are The Different Types Of Check Frauds

The check fraud is the second most common type of banking frauds; the first in the list is the credit card fraud. The check fraud refers to the fraudulent activity which is made by a person to buy products, services or to borrow money against checks for which either the funds are not deposited or even the account from which it is withdrawn is dormant. The major advantage which a person who gives fraudulent check wants to earn is the time period between giving the check and it’s clearing through the bank.

There are two types of check fraud, check kiting and paper hanging. Check kiting refers to giving a fraud check but depositing the amount before the time period to complete the transaction cycle to cover the fraud while the paper hanging is a type of check fraud where no funds are deposited in the bank what so ever. Normally the consumers selling valuable items are the main target of a check fraud.

Check fraud refers to the writing a check if the owner of the check knows that the amount is not in the bank when writing a check and is included in Criminal Activity. Check fraud activity is normally done by a fake buyer. A fake buyer is a person who knows that he cannot pay for the service or product he / she is pretending to buy. Fake buyers normally use fraud checks for pretending their selves as a potential buyer.