How to Protect Against Bad Checks

Stop Bad Checks Before the Transaction

• 1). Do not accept post-dated checks. Post-dated checks cannot be prosecuted, though you may be able to settle in small claims court.
  
  
• 2). Do not hold a check for any amount of time. Being asked to hold a check implies that the funds are not currently in the account.
  
  
• 3). Make sure that there is personal information on the check. You should be able to contact the check writer after you've received the check.
  
  
• 4). Ask for identification. Check the signature and information on the check against the signature and information on the identification offered.
  
  
• 5). Call the financial institution to verify the funds are the in the account (1).
  
  

Reclaiming Losses after a Bad Check

• 1). Enroll in a government protection program, if one is available. Many local and state government offices are working with small business owners to stop check fraud.
  
  
• 2). Enroll in a check guarantee program. Many banks and independent financial institutions offer check protection programs that will reimburse businesses for unpaid checks and filter out bad check writers. Some will even reimburse businesses for fees on returned checks.
  
  
• 3). Report check fraud to the office of the attorney general or the district attorney. From there you can pursue a civil suit or, if applicable, you can pursue criminal prosecution.