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Counterfeit Checks What Rules Should Cover These? Janet A. FlaccusProfessorLets start with the facts of a Seventh Circuit case, Wachovia Bank, N.A. v. Foster Ranchers, Inc.1 Last year I wrote to say
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Counterfeit checks refer to fraudulent checks that are made to resemble genuine checks. The rules surrounding counterfeit checks vary depending on the jurisdiction, but generally involve criminal penalties for those involved in creating or using counterfeit checks.
There is no specific requirement to file counterfeit checks as they are illegal. However, individuals or businesses who receive or discover counterfeit checks are encouraged to report them to the appropriate authorities or to their bank.
Counterfeit checks should not be filled out or used as they are fraudulent. Instead, individuals who receive counterfeit checks should report them to law enforcement or their financial institution.
The purpose of counterfeit checks is to deceive individuals or businesses into accepting them as genuine payment. The rules surrounding counterfeit checks are in place to deter and punish those involved in counterfeiting and using fraudulent checks.
All necessary information regarding counterfeit checks, such as the check amount, the entity or individual it is made payable to, any suspicious or fraudulent markings or discrepancies, and any information about the suspected source of the counterfeit checks should be reported to law enforcement or the appropriate financial institution.
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