Periodic Bank Statements in US Cheque Fraud Litigation: The Dangers of Keeping up to Date on One's Account

Abstract

The risk of cheque fraud is serious for companies that maintain bank accounts with a high volume of chequing activity. Sophisticated criminals could create convincing replicas of a company's cheques, or steal blank cheques from the company and forge the necessary signatures. In some cases, employees entrusted with clearing accounts payables embezzle company funds by writing cheques to dummy payees and cashing the cheques with false identifications. By the time the fraud is discovered, the criminals and the money are usually long gone, and the bank and the company are left to argue over who should bear the loss.

Citation

Kim, M.S. (1996), "Periodic Bank Statements in US Cheque Fraud Litigation: The Dangers of Keeping up to Date on One's Account", Journal of Financial Crime, Vol. 3 No. 4, pp. 370-372. https://doi.org/10.1108/eb025739