REGIONAL CHECK FRAUD UNIT

The Regional Check Fraud Unit works closely with the business community to stop violators and to prevent check violations by educating retailers and service businesses with tips on how to monitor identification of check writers. The Unit pursues cases for prosecution and, whenever possible, restitution.

The Unit handles thousands of felony and misdemeanor cases each year with the help of investigative teams from the El Paso County Sheriff's Office and the Colorado Springs Police Department.

Before turning a complaint over to the Check Fraud Unit, the victim should take some steps on his/her own:

• present the check to the named bank for payment, even in those instances when it is known the check won't be honored
• make an attempt to collect from the check writer
• all check complaints must include:
  1. proper identification of the check writer: a Colorado driver's license or Colorado ID card. A military ID card or a Social Security number is not sufficient.
  2. the name and address of the person who accepted the check (this person is a required witness)

After your check complaint has been accepted by the Check Fraud Unit the following may occur:

• the Check Fraud Unit will attempt to contact the check writer and provide him/her an opportunity to make restitution.
• if the check writer fails to make restitution, criminal charges may be filed.

The following list details situations and circumstances under which, ordinarily, the Regional Check Fraud Unit cannot accept the case:

• Checks under $25.00 (multiple checks from the same check writer totaling more than $25.00 will be accepted)
• Checks more than 90 days old
• Checks without proper identification
• Checks written on out-of-state banks or with out-of-state identification
• Checks where partial payment has already been accepted
• Checks written for charge account payments
• Checks written with an agreement that they will be held for a period of time
• Post-dated checks
• Two-party checks
• Pre-signed checks
• U.S. Government checks (these complaints should be referred to the Secret Service, 632-3325)

Individuals bringing complaints will be required to sign a summons and complaint and must make an appointment by calling (719) 520-6165.

Forgeries and Counterfeit checks should be reported directly to the law enforcement agency in your jurisdiction:

• Colorado Springs Police Department at 444-7000
• The El Paso County Sheriff's Office at 520-7171
• Fountain Police Department at 382-8555
• Woodland Park Police Department at 687-9262
• Teller County Sheriff's Office at 687-9652
• Cripple Creek Police Department at 689-9480
• Manitou Springs Police Department 685-5407.

TIPS TO PREVENT BAD CHECK LOSSES

Business owners and managers who have been stung by bad checks face the dilemma of how to avoid such losses in the future without alienating valued customers. The Check Fraud Division of the District Attorney's Office has provided some guidelines for businesses to share with employees who accept checks.

• Establish a policy at your business regarding check cashing and assign the responsibility of approving checks to specific employees. When an employee leaves your employment, get a forwarding address where he/she may be reached if needed later for l.D. purposes.
• Make sure the check legibly reflects the maker's address and telephone number; the same dollar amount written in both letters and numerals, and place of employment. A post office box number should be accompanied by the address where the maker resides.
• The check should be signed in the presence of an employee. If it is a business check, make sure the maker's name is legible.
• Require picture identification: A Colorado driver's license or official Colorado ID card. Make sure to: copy the maker's date of birth, compare the photo and description to the person making the check, and compare signatures. If the person presenting the check refuses to offer identification - or if the identification is insufficient - DO NOT CASH THE CHECK.
• The employee accepting the check should record on the check all the individual's ID information and the employee should initial the check when he or she accepts it. It is especially important that the employee note on the check that the picture on the ID matches the maker.
• DO NOT ACCEPT: undated, post-dated, pre-dated or second-party checks. Never accept a check with the agreement to hold it for a few days.
• NEVER ACCEPT: partial payment for goods and services - demand payment in full.
• If you are in doubt about the validity of a check, call the bank or check reference sources. The bank will tell you if the check will clear; however, the bank will not know how many other checks are still outstanding.
• Don't cash checks for just anyone. Cash them only if the person meets your requirements. Policies carried out consistently and politely will rarely offend legitimate customers.

Your best defense against bad checks is to consistently follow proven procedures when accepting checks. Your employees are key elements and you should train them to be alert for "red light signals" as well as following consistent identification procedures.

RED LIGHT SIGNALS

• Indiscriminate purchases of large, expensive luxury items, particularly on weekends or evenings.
• Purchase of items easily sold or pawned for cash.
• Transactions involving cash back in addition to the value of the merchandise.
• Beware of the especially talkative customer who delays his selection, then buys expensive items.
• Beware the customer who makes purchases of physically large items like television sets or furniture and insists on taking it with him instead of waiting for delivery.
• Watch out for the customer who rushes the clerk to make a large purchase just as the store closes.
• Payroll checks should be cashed at a bank; however, if you choose to cash a payroll check at your business, the clerk should pay extra attention to identification procedures. The clerk should closely scrutinize large payroll checks and government checks - these are among the checks most favored by forgers.