Banking fraud in kenya

Prevent Fraud and Forgeries in Kenya when completing your cheque leaf

Cheques are used often by many people who do not know how to prevent fraud and forgeries in Kenya. The fraudsters have a field day where the drawer draws a cheque incorrectly. It is imperative that the writer of the cheque know how to write out the instructions.

Banking fraud in kenyaAll cheques are pre-printed crossed with the words “A/C Payee” or Account Payee Not Negotiable”. The Drawer may cancel the crossing by appending full signature against the cancellation. This makes the cheque payable over the counter without having to bank it. Unless it is your bank account that you are withdrawing from, most banks do not allow this kind of transactions. These transactions are known as third party transactions.

Precaution to observe to prevent fraud and forgeries in kenya

  • The body of the cheque should be filled in by yourself or by someone authorised by you. This includes the payee name, the date, the amounts in words and figures and the cheque must be signed.
  • When drawing cheques, the amount must be written in words, with minimum space between each word commencing close to the phrase “Kenya Shillings”
  • The amount in figures should be written in the allocated space. The amount in figures should be terminated by a pair of horizontal lines. The figures should not be separated by commas and the Kenya shillings and cents should be separated by a double dash=
  • If there are any alternations that you make when writing out the cheque, you must authenticate or append your full signature above or below the alteration.
  • Use indelible Pen or ball pen or permanent ink to ensure that the information is not erased.
  • The pen should also not smudge the cheque leaf as the bank will not accept unclear instructions.
  • If the check is printed, do not use a typewriter fitted with carbon ribbons or incorporating a correction facility, which allows the “lifting off” of incorrect characters on the paper surface by use of a special correction tape.
  • When not in use your cheque book and cancelled cheques should be kept in a safe place where it will be safe with no unauthorised access. If the cheque book is lost or stolen the bank should be notified immediately
  • Do not pre-sign cheques leaf without completing the rest of the details especially the pay details. If the cheque leaf or cheque book is stolen, the thief would just complete the rest of the details and cash the cheque.

Financial institutions are not be liable when the customers have been careless or do not follow instructions to prevent fraud and forgeries in Kenya.

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