2005 May 24 | Wheatworks Blog: Financial Matters

Home

Archive for 24th May 2005

Hide your checkbook!

5/24/2005, 7:28 pm

Many believe that writing a check is that safest way to make a payment. It’s not.

Using only the string of numbers printed on the bottom of your checks and your deposit slips, a thief can easily create a “demand draft”, present it to be cashed and withdraw funds from your checking account.

A Demand Draft looks like a regular check but indicates “signature not required” on the authorized signature line. And banks will usually cash a Demand Draft just like a valid, signed check.

How can you protect yourself?

1. Protect your checking account numbers with as much diligence as you protect your credit card numbers. For example, don’t leave checks or deposit slips visible on your vehicle’s front seat.

2. Pay close attention to your monthly checking account statements. If you see something you didn’t authorize, contact your bank immediately!

3. Shred unused deposit slips and cancelled checks you don’t wish to store. Do not throw them into the trash.

4. Be careful who you pay with a check. Remember, every person who handles your checks or deposit slips has access to your account.

5. Don’t let people you don’t know and trust make wire transfers into your account. Why? Because you must give them your account information.

6. Be proactive. Talk with your local banker and share your concerns about the use of Demand Drafts. Ask questions like, “Will your bank protect my account and reimburse me for funds removed by unauthorized Demand Drafts?”

Remember, it’s your money. Protect it!

Share This Post ...