Check Forgery

Check Forgery
The Lectric Law Library's definition is as follows:
"The act of criminally making or altering a written instrument for the purpose of fraud or deceit; for example, signing another person's name to a check. To write payee's endorsement or signature on a check without the payee's permission or authority. The 'payee' of a check is the true owner or person to whom the check was payable."
A check book that is stolen, lost, or misplaced should be reported immediately to your bank. There is a possibility that your lost or stolen check book may be used faster than you think. There is also a possibility that you may be liable for the forged checks, though this is unlikely in most states. This isn't like fraudulent credit card charges; there's no liability protection for check forgery. In practice if you can show you took reasonable precautions you may not lose any money -- but there are no guarantees. If you find yourself in this position you should check out the check forgery laws in your state.
Check forgery, can make your life miserable. Again, you have to cancel your checking account. A check could have been written without your knowledge and if checks have bounced, then your account has been marked as 'bad' by the check service companies. There's no way to undo this. You need a new account. And if you have to get a new account to protect yourself don't forget to fix your direct deposit and any automatic withdrawals you may have set up with your checking account.
The penalties for check forgery depend on the amount and which state and county the crime happened. A person writing a forged check could be charged with a felony, especially if the amount is over $500. But the victim of check forgery seems to pay penalties as well, for each bad check that has been written on your account and has been forged you will have to submit an affidavit of forgery. In addition to this you will have to report the crime to the police, and sometimes you will have a hard time proving check forgery. These steps take time and could cause you additional monies as you may have to take time off work to report the crime to the police and to make sure all the affidavits of forgery are filed.
Check forgery carries a penalty of 2-7 years depending on the amount of the check that was forged. The forger will in most cases have to do jail time as well as make restitution in the amount of the check that was forged. So check forgery laws and check forgery penalties vary from state to state and country to country. And of course these penalties also take into consideration the first time offender and/or if this is a repeat offense, in which case the penalties are higher.
Recently check forgery has increased by family members. Be mindful of where you keep your extra checks.

Carol Heath Lead Writer for good info
Check Forgery