What is an Altered Check?

An altered check is a negotiable instrument on which key items have been changed in order to defraud someone. The information that may be altered on a check includes the check date, the dollar amount to be paid, and the name of the payee. When a bank receives a check that it suspects has been altered, it is entitled to refuse to honor the check. The alteration of a check is illegal and is classified as check fraud, which can result in criminal charges being imposed on the responsible party.

Liability for an Altered Check

The liability for an altered check can reside with any party involved in its processing, depending on where negligence resides. Thus, the party drawing the check, the bank on which the check is drawn, or the bank that presents the check could all be considered liable, depending on the circumstances. To guard against alteration, the issuer of a check should ensure that there are no significant blank spaces left in its number and amount lines.

Example of an Altered Check

For example, the name of the payee could be altered from Smith to Smithson, thereby allowing Smithson to be paid. Or, the dollar amount to be paid could be changed from $100 to $1000.

Altered Check vs. Counterfeit Check

A counterfeit check is a fake check that has been configured to look like a real check. This approach varies from an altered check, where the information on a real check has been adjusted to favor the person engaging in the adjustment activity.