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.

Examples of Altered Checks

Here are several examples of how checks can be fraudulently altered:

Altered payee name. The name of the payee could be altered from Smith to Smithson, thereby allowing Smithson to be paid.
Altered dollar amount. The dollar amount to be paid could be changed from $100 to $1000, simply by adding a zero.
Altered date. The date on a check could be altered to appear valid past its original intended timeframe.
Altered memo line. The memo line is modified to indicate an unrelated purpose, to confuse the recipient or bank.
Added endorsement. A forged endorsement is added on the back of a check, allowing someone else to cash the check fraudulently.
Split check alteration. A check is cut or split, and parts of it are combined with parts from another check to create a fraudulent composite.

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.