Altered Check

Altered Check

A check on which the name, amount, or other information has been changed in order to defraud someone. For example, one may change the name of the payee from John Smith to John Smythe, which will result in John Smythe receiving payment. The liability for funds lost on an altered check depends on which party involved displays negligence.
References in periodicals archive ?
A third felony charge, possession of an altered check with intent to defraud, is to be dropped under the plea agreement.
d/b/a Metrol, (28) is an unpublished Arizona appellate court decision where the insured contended that the Employee Dishonesty coverage limits of $50,000 of Employees Mutual's policy applied to each of the 284 separate occasions of forged or altered checks occurring over a five year period totaling $584,000.
For cancelled checks it could be handwritten check endorsements, multiple endorsements, unsigned checks, or altered checks, Hall said.
It soon found that other stolen and altered checks, as well as counterfeit checks, were being negotiated against the company's account.
The court concluded, however, that Travelers would not he entitled to reimbursement of amounts mistakenly paid for the six altered checks.