Third party cheque fraud
In December 2005, we agreed with the British Bankers' Association (BBA) and Building Societies Association (BSA) to make changes to industry practice to reduce third party cheque fraud.
These changes will help reduce the risk that cheques made payable to a bank or building society can be intercepted by a fraudster and paid into their own account.
Following a recent incident of this kind of fraud, we entered discussions with the industry on how best to change cheque handling practices. As a result, banks and building societies have agreed that from October 2006 they will, in some circumstances, decline cheques for personal accounts made out solely to an institution. From this date the name of the person who holds the account will also be required in the payee line. Cheques made out to personal or business customers will be unaffected.
We have worked closely with the industry on this initiative, which is an added measure to beat the fraudsters. And we will now be working to ensure customers know what they need to do.
Related links
FSA press release:
New practice will better protect consumers from cheque fraud - 7 December 2005
Related external links
BSA Press release:
Check your cheques urge banks and building societies