An altered check is one where some detail has been changed after it was originally written, specifically when that change has been made without the check-writer's knowledge. The legal consequences if and when this alteration is discovered depend on the prevailing jurisdiction. An altered check should not be confused with a bounced check or a crossed check.
The most likely form of an altered check is one where the recipient's name has been changed by a person in possession of the check, meaning he or she can collect the payment. In some situations the alteration may be to the amount, though this tends not to happen if the recipient and issuer know one another, as the alteration will soon become clear. It could be the date that was altered, for example if the issuer intended the check to be post-dated to avoid potential scams and the recipient alters the check to allow immediate cashing without delivering the relevant good or services.
An altered check contains information that has been changed from its original.
In the United States, altered checks are covered by section 3-407 of the Uniform Commercial Code. This is a set of standard regulations regarding commercial transactions that has been adopted into the laws of all US states. Under the UCC, alteration covers both changing what has been written on a check, and adding information where the check was incomplete, for example if the amount was left blank.
An altered check is one in which a detail was altered after the check was written, and this can be grounds for a check not being honored by a bank.
The rules mean that if somebody fraudulently alters a check, anyone who would have had an obligation resulting from that check is no longer required to meet that obligation. This means that not only does the issuer not have to pay the money, but neither the issuer nor recipient's bank has to act upon the check. If, however, the issuer's bank pays out the money on an altered check in good faith, it cannot necessarily be forced to recover or return the money.
Regulations regarding the changing of information on a check are included in the Uniform Commercial Code.
Banks are allowed to put time limits for the issuer to spot the alteration and require the transaction to be overturned. The maximum time for such a limit imposed by the bank is 30 days. If the bank does not have a policy, there is also a legal limit of one year for the customer to make a complaint.
An altered check is not the same as a bounced check. This is better known as a non-sufficient funds case and means that the issuer does not have enough money in her account to cover the payment; if the issuer knew this upon writing the check she may be guilty of a criminal offense. The altered check also differs from a crossed check, which can only be deposited at a specific bank, rather than cashed elsewhere.
Who Is Liable for an Altered Check?
In addition to defining what constitutes an altered check, the Uniform Commercial Code also allocates liability and specifies the rights and responsibilities of all parties involved. Ultimately, the person who altered the check for fraudulent purposes is the guilty party, who faces the appropriate penalty under the laws in the jurisdiction where the act took place. However, the UCC also considers all persons and institutions, including:
the person who wrote the check (the "drawer")
the bank on which the check is drawn
the bank into which it is deposited
the clearing service
Broadly speaking, the law says that every person or institution that transfers the check does so with the implicit warranty that it is unaltered since the drawer filled it out. Therefore, responsibility is assigned based on a combination of general liability and a determination of whichever individual or institution was in the best position to catch the alteration and failed to do so. At that point, it is the liable party who goes after the person who originally altered the check.
Does The UCC Apply Specifically to Personal Checks?
Legally, a personal check is a promissory note, or a promise to pay the stated amount on the check. However, the UCC considers this to be only one category of what is known as "negotiable instruments." In addition to personal checks, these can also be any or all of the following:
cashier's check
teller or counter check
traveler's check
money orders
certificate of deposit
Not all of these are promissory notes. Cashier's and teller checks and money orders are categorized as "drafts," or orders; the person or institution that is authorized to pay is under an order (in this case, the person who originally purchased the check) to do so.
Can You Cash an Altered Check?
This does happen on rare occasions, most often with personal checks. However, with today's high-tech watermarks and other ways of authentication and fraud detection, it would be very difficult for a potential fraudster to cash an altered check.
The real problem here is that, as discussed earlier, liability may rest with anyone along the chain of endorsem*nts from drawee (the institution funding the check) to the payor (the institution who pays the bearer).
There was a recent situation in which a remitter (the person writing the check) was held liable by the payee when they failed to receive payment. This did not come to the remitter's attention until he saw his monthly statement. Somehow, the check had been stolen and the name of the payee cleverly replaced with that of the thief.
The thief ultimately faces criminal charges, when and if caught. However, the remitter could be held liable and forced to write a new check to the payee along with any penalties and fees. In this case, the remitter would need to demonstrate to the court that the check had been altered in a way that any competent bank teller or another financial professional should have detected.
Is it a Felony to Alter a Check?
The answer is yes if the amount involved is $1,000 or more. Otherwise, it is prosecuted as a misdemeanor. Penalties will vary from one jurisdiction to another, and depend on factors such as recidivism and the exact amount involved. Convictions for higher amounts result in harsher penalties in addition to restitution.
Check alteration is one of several related financial crimes under the broader category of check fraud. While check alteration is very common, other forms include:
"Paperhanging" simply refers to issuing checks on a closed or non-existent account. People get away with this on occasion, but most verification methods today can at least confirm the existence of an account, if not its balance.
"Kiting," or "Flashing," is more sophisticated and involves the circular transfer of funds among multiple accounts. Here is a simple step-by-step example:
John has $50 in his account at First National.
He writes himself a check against that account for $100.
John then deposits that check into a different account he maintains at State Bank.
Immediately, John withdraws that $100 from State Bank
He returns to First National and re-deposits the $100 before the check clears.
The $100 is then paid into his account at State Bank
In essence, John just made himself $50.
Motives for this form of white-collar crime vary but usually involve businesses that are trying to stay in operation during economic downturns. Unlike altering a check, schemes such as kiting cross the line into a federal crime, and are prosecuted accordingly.
An altered check is a check or another negotiable instrument that has been materially and maliciously altered to effect a fraud. Usually, either the name of the payee, the amount of the check, or the date is changed.
Thieves alter checks by changing the amount or the payee name. Then, they cash the check over the counter, deposit it into a new account and withdraw the funds before anyone detects anything or find other methods of getting the cash.
An altered item is a product or piece of equipment that has undergone some sort of modification or change from its initial state. A modification can be made to enhance the item's performance or functionality, transform it for a different purpose, or repair it.
How long does a bank have to return an altered check? If you notice an altered check, ideally you should report it to the bank within 30 days. That being said, consumers have up to one year to report the loss to their bank in order to get the amount of the check returned to them.
If your entry doesn't take up the full box or line, draw a line to the end of the space to prevent criminals from making alterations, such as adding an extra zero or adding an alternative payee. Filling out the check properly helps to ensure it is endorsed and cashed correctly.
An altered cheque is a document or a negotiable instrument, which was altered to affect a fraud materially and maliciously. Usually, the payee name, the cheque amount, or the date will be changed. An altered cheque is the most common type of cheque fraud.
Forgery is pretty simple – it's when someone forgers your signature on a check, draft, note, or similar document causing you to suffer a financial loss. An Alteration is when someone takes a legitimate check, note, or draft and alters the amount.
You may have to pay back the full amount of the check.
In most cases, once a check is found to be fraudulent, the amount will be charged to your bank account. Worse, the bank may charge you an additional fee for processing a fake check.
The main reason banks refuse to cash checks is due to insufficient funds, but checks can be rejected for other reasons, too, including unreadable or invalid account and routing numbers, improper formatting, a missing or invalid signature, or the elapse of too much time since the printed date.
change implies making either an essential difference often amounting to a loss of original identity or a substitution of one thing for another. alter implies a difference in some particular respect without suggesting loss of identity.
For example, the name of the payee could be altered from Smith to Smithson, thereby allowing Smithson to be paid. Or, the dollar amount to be paid could be changed from $100 to $1000.
An alteration is an act done upon the instrument by which its meaning or language is changed. Changes in the terms of the contract with a mutual consent between two parties is known as alteration of contract.
Altered Item / Fictitious Item or Counterfeit – A check returned stamped Altered, or stamped Fictitious item does not match the account holder's records or the bank's records as far as the amount, date or terms of the check and is being returned in dispute of its validity.
If this is your first time bouncing a check, your bank might be more lenient about forgiving your nonsufficient funds or overdraft fee. If this has been a pattern of behavior, however, then your bank might become more stringent about requiring that you pay your overdraft or nonsufficient funds fee.
See sidebar below.) In the United States, check kites are prosecuted under Title 18, U.S. Code Section 1344, which is defined as obtaining the funds of a federal bank under false pretenses. In effect, a check kite is obtaining an interest-free loan from a bank without the bank's knowledge.
Using a process known as check washing, mail snatchers erase the ink on a check with chemicals found in common household cleaning products and then “reuse” the checks by rewriting them to themselves. Then when you check your bank statement, you see that your check went through and the amount matches.
When someone says an animal is “fixed” or “altered” that means the animal has been spayed or neutered. PAWS spays and neuters every animal adopted from our shelter, even those as young as eight-weeks-old. We also recommend that people have their pets altered as soon as possible.
1. to make or become different in some respect; change. 2. ( transitive) informal, mainly US a euphemistic word for castrate, spay. Collins English Dictionary.
The term forgery is used when a genuine document has been altered by deletion, addition, or substitution. Deletion is accomplished by erasure, scraping, or bleaching. Included in the different types of additions are transfers, actual addition, and overwriting.
Fraudulent Alteration means a material alteration to an instrument for a fraudulent purpose by any other person other than the person who was authorised to prepare or sign the instrument.
What Is Falsification of Documents? Falsification of documents or records involves the alteration or modification of a document that is done for an illegal purpose. It can also include passing such documents on to other parties.
If you deposit a fake check, your bank can decide to freeze or even completely close your account. Review your bank deposit account agreement to see in what scenarios your bank can close your account. It can damage your credit.
Fake checks can look so real that it's very hard for consumers, or even bank employees, to detect. Fake bank checks are typically used in scams where the scammer tries to get you to cash or deposit the check.
According to federal laws, intentionally depositing a fake check to get the money that is not yours is an act of fraud. Just like any other act of fraud, you can go to jail or face fines.
An alteration is a change in or to something. Making some simple alterations to your diet will make you feel fitter. Synonyms: change, adjustment, shift, amendment More Synonyms of alteration.
Alter or alteration means any change or modification in construction. Alter or alteration means any change or modification in construction or occupancy of a building or use of land.
Alters (headmates) can switch for all types of reasons depending on the trigger. Switching between headmates is usually involuntary, and can cause a great amount of distress with the alter. Every DID system is unique. Some people with DID have more control over their switching than other people with DID.
It's important to note that you can't void a check once you've given it to the payee. The only way to stop the check from being cashed or deposited is to request a stop payment from your bank, which may involve a fee.
Some common synonyms of alter are change, modify, and vary. While all these words mean "to make or become different," alter implies a difference in some particular respect without suggesting loss of identity.
An insurance company lays down certain rules and regulations that policy buyers are expected to follow when purchasing an insurance policy. However, once the policy has been purchased, one may find certain discrepancies that one may want to change. These discrepancies are called alterations.
If someone comes into the bank and uses a check to make a fraudulent withdrawal from an account that is not theirs, the bank is typically liable for the fraud. Similarly, if a bank cashes a check that was created fraudulently, the bank is also responsible for covering those funds.
Insufficient funds: A check can bounce when the sender issues what is known as a non-sufficient funds (NSF) check, which is one that an individual doesn't have enough money in their account to cover. Stop payments: A request not to pay a check that has been issued can also result in a returned check.
Generally, a bank may attempt to deposit the check two or three times when there are insufficient funds in your account. However, there are no laws that determine how many times a check may be resubmitted, and there is no guarantee that the check will be resubmitted at all.
If you wrote a check that bounced, your bank may charge you a nonsufficient funds fee or overdraft fee. In addition, the company you were trying to pay may charge you a late fee if the bounced check means your payment is now overdue. Failure to pay outstanding fees can result in your account being sent to collections.
But you may be unpleasantly surprised to learn that in that situation, you could end up being charged a fee by your bank for trying to cash or deposit that cash. This is known as a returned check fee, and SoFi says that it could easily cost you $30 or $35 for a single incident.
“Alteration” is an unauthorized change in a check that modifies the obligation of a party. This generally includes a change in the amount of the check or the name of the payee. A “counterfeit” or “forged” check is a fraudulently created check or one that includes a forged drawer signature.
In general, under UCC 4-401, the paying bank may charge the drawer's account only for checks that are properly payable. Neither altered checks nor forged checks are properly payable.
The main reason banks refuse to cash checks is due to insufficient funds, but checks can be rejected for other reasons, too, including unreadable or invalid account and routing numbers, improper formatting, a missing or invalid signature, or the elapse of too much time since the printed date.
Forgery, as is generally understood by the term, applies only to a false making or signing of an instrument with intent to defraud ; while Alteration refers to the change made in the terms of the document after it has been constructed.
You may be responsible for repaying the entire amount of the check. While bank policies and state laws vary, you may have to pay the bank the entire amount of the fraudulent check that you cashed or deposited into your account. You may have to pay overdraft fees.
A fake check isn't always spotted by a bank. You may be able to cash a check, even if it is fake. A bank may not know a check is fake until the bank tries to clear the check. This process can take weeks.
The rule adopts a presumption of alteration for disputes between financial institutions over whether a substitute check or electronic check contains an alteration or is derived from an original check that was issued with an unauthorized signature of the drawer.
(a) “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
What does it take to materially alter the terms of the other party's offer? The general rule is that any change that would surprise or impose hardship on the other party by shifting risk in a significant way would be considered "material."
Some banks make check verification difficult or impossible. They may require you to visit a branch in person. Or, they may only verify the account exists, not whether it has any funds, in order to protect their customers' privacy.
Personal, business, and payroll checks are good for 6 months (180 days). Some businesses have “void after 90 days” pre-printed on their checks. Most banks will honor those checks for up to 180 days and the pre-printed language is meant to encourage people to deposit or cash a check sooner than later.
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