Do you still have personal checks? Does anyone? I don’t even have checks anymore, and maybe you shouldn’t either. Checks are a dangerous thing for you and your bank account.
If you loose your checkbook it’s too easy to impersonate you and drain your bank account. The bank will assume that it was you and then assume you are trying to defraud the bank. Getting your money back will be quite a lot of work. But it gets worst.
If someone uses the checks and then you get the bank to stop payment on the checks, now the store that took the bad check is the victim of a crime. All they have to do is sign an affidavit that the check was bad and a warrant can be issued for your arrest. It happens more often they anyone would want to admit.
You get arrested because you are a good person and the police just look up your address from your driver’s license. Eventually it all gets sorted out, but you can end up in jail and need to pay a lawyer to get out.
How do you protect yourself? The best and easiest way, don’t carry or have checks. I shredded the set I was given with the last account I opened. If you need checks because it’s the way you do business, don’t carry them. Keep them locked up at home. If you do carry them and they get lost, you need a police report. The cop probably won’t want to take a report just because you lost your checks. But if you have a one it will make the other half much easier.
Law Enforcement is starting to figure this out, but it will take time for the system to figure out how to change itself to keep innocent people out of jail. Protect yourself, and your checks.
Stay Safe,
Ben
I didn't ever touch on the routing and bank account info on the bottom. That's a great point! Now that ACH software (the programs that allow someone to use your account number and routing number to get money from your account) are so cheap and easy to get. Anyone that copies those numbers on the bottom of your check can clean out your account over the internet. Good luck getting your money back, banks are overworked and most of the time it's cheaper for them to just put give you the money then actually track down the thieves. So the thieves have no reason to stop. Thanks for the comment.
Ben, very good post. I'm glad you're discussing this. I've been trying to convince people of this for a long time. There's so much talk about hackers getting into people's bank accounts online. While that does happen, many people underestimate the lack of security when writing a personal check. Your name, address, routing number and account number are there for everyone who handles your check, to see and perhaps use! Also, too many merchants don't do a good enough job of checking your ID when accepting a check. Once again, great post.