Methodology of Economic Crimes week 4 Invd.
Week 4: Week Four - Individual Work
Instructional Objectives for this activity:
Explain how handwriting analysis is used to detect fraudulent checks.
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Assume you are an investigator in a fraud unit. You have been assigned a case where one individual has been writing forged checks, mostly from checks stolen and altered. You have six of the forged checks from three different banks. You know the suspect and are now writing an affidavit (a written request to the court to justify your search) for a search warrant for his apartment.
- What will you need from his apartment and why do you need it?
- Describe the types of materials you may need to find to prove he was altering or modifying the checks, as well as any other material you may need for a handwriting analysis.
Your paper should be 300-400 words (1-2 pages) in length and answerall
parts of the question above. Please cite your sources in APA format.
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Review Chapter 2, “Check Fraud” pages 44-65.
In the Book:
Closed account frauds are based on checks being written against closed accounts. This type of fraud generally relies upon the float time involved in inter-financial institution transactions.
The scheme usually involves a fraud ring with business checks drawn on closed accounts at a financial institution. The ring deposits. The checks a new account at a financial institution.
Forged Signatures:
Forged signatures usually involve the of legitimate blank checks, with a false imitation of the payer signatureon the signature line. Many cases of forged signatures are perverted by a person known to the valid payer. “Employees gone bad” are one source of forged signature. In other cases, signature are forges on blank checks stolen from the mail while being shipped from the check printer to the account holder. The theft of blank check stock from the mail tends to increase following natural disasters when account holders have to replace destroyed check stock.
Altered Check:
Altered checks, also known as check washing, are defined as valid check stock with certain fields changed. When the payee name is changed, payment is made to the wrong person. The payee name is changed, payment is fields changed. The courtesy and/or written amount can be increased, resulting in overpayment to the payee. Some checks have had the MICR line altered with bogus information (such as the routing/transit (ABA) number or the account number) to slow down the clearing/ return process. Checks can be altered to include information that assists the criminal in negotiating the check. For example, bank officer approval stamps have been lifted from one check and included on another check of higher value.
Altered check often occurs after a legitimate maker creates a valid check to pay a debt. A criminal then takes the good check and uses chemicals or other means to erase the amount or the name of the payee, so that new information can be entered. The new information can be added by typewriter, in handwriting, or with a laser printer or check imprinter, whichever seems most appropriate to the check.
Summary:
Check fraud is a national problem causing an estimated lost of more than $1 BILLION TO FINANCIAL INSTITUTION. IN THE Year 2000, an estimated 70 billion check were written. Check fraud methods include checks written on closed accounts, counterfeit checks, forged signatures, forged endorsements check kiting, third- party bill paying services, demand drafts, altered checks, identify assumption, and fraud by bank insiders. Questioned document examiner are a useful tool for handwriting comparison and may be useful to determine is a document is authentic.