Check Fraud

Check fraud review begins with instrument, account, and timing evidence rather than an informal label. Check Kiting concerns deceptive patterns that recycle uncollected deposits between accounts. A Raised Check is a genuine item altered after issue, traditionally to increase its amount.

“Refer to drawer” is a return message rather than proof of fraud. Review that language through the broader Returned Check concept and obtain the underlying return reason.

Review Priorities

• Compare the processed check image with the drawer’s records and authorization.
• Trace account balances, deposit timing, endorsements, reversals, and related accounts.
• Separate alteration, forgery, insufficient funds, stop payment, and a recurring kiting pattern.
• Report suspected fraud promptly through the institution’s stated process and preserve the evidence.

Suspected fraud is not established by one return code alone. Loss allocation, reporting duties, and remedies depend on the facts, account terms, payment method, and applicable law.

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