Public Fraud Advisory: Fraudulent Cheques Being Used To Purchase Goods And Services

The Trinidad and Tobago Police Service (TTPS) Fraud Squad is advising business owners, retailers, service providers, and members of the public to remain vigilant against criminals who use fraudulent cheques to obtain goods and services.

According to the TTPS, in this scheme, fraudsters present counterfeit, altered, forged, or stolen cheques as payment for goods or services. They often create a sense of urgency, requesting that goods be released or delivered immediately.

Businesses that release goods before confirming that the cheque has been successfully cleared, may suffer significant financial losses when the cheque is subsequently returned unpaid.

How The Fraud Works

Fraudsters may:

• Request quotations for large orders via the telephone or WhatsApp;
• Present a fraudulent cheque to purchase high-value goods or services;
• Present a screenshot of the fraudulent cheque or deposit slip;
• Claim that the payment has already been processed or will clear shortly;
• Pressure staff to release goods immediately due to an alleged emergency or urgent deadline;
• Arrange for a third party or courier to collect the goods before the cheque is dishonoured;
• Provide false identification or inaccurate contact information to avoid detection;
• Place an order and request delivery on a Friday afternoon or a day before a public holiday, thereby not giving sufficient time for proper verification to be conducted.

Warning Signs

Businesses should be alert if:

• The purchaser places a large order over WhatsApp or via telephone;
• The customer insists on taking possession of goods before the cheque has cleared;
• The cheque appears altered, damaged, or contains inconsistencies;
• The purchaser is reluctant to provide valid identification;
• The purchaser may provide identification via WhatsApp, which is usually fraudulent;
• The name on the cheque differs from the purchaser’s identification or business details;
• The transaction involves unusually large purchases or expensive items without a clear business reason;
• The customer becomes impatient or applies pressure to complete the transaction quickly.

How To Protect Your Business?

The TTPS Fraud Squad recommends that businesses:

• Never release goods or provide services until the cheque has been fully cleared and the funds have been confirmed by your financial institution;
• Carefully inspect cheques for alterations, erasures, spelling errors, inconsistent fonts, or missing security features, if it was physically handed over to the business upon receiving goods;
• Maintain detailed records of all cheque transactions, including invoices, customer information, identification details, and vehicle registration numbers where applicable;
• Install and maintain CCTV systems to capture customer transactions;
• Train employees to identify suspicious transactions and report concerns to management immediately;
• Encourage customers to use secure electronic payment methods such as ACH for high-value purchases whenever possible.

If You Become A Victim

If you believe you have been targeted by cheque fraud:

• Preserve the cheque and all related documentation;
• Save CCTV footage, receipts, invoices, emails, text messages, and any other communications;
• Record descriptions of the suspect(s), vehicles used, and any witnesses;
• Report the incident to the nearest Police Station or the TTPS Fraud Squad as soon as possible.

Remember

• A cheque being deposited does not mean that the funds have been cleared. Always wait for confirmation from your financial institution before releasing goods or completing services;
• When viewing your bank statement online, ensure the funds are available and not current balance.

The TTPS notes that “remaining vigilant and following proper verification procedures, businesses can significantly reduce the risk of becoming victims of cheque fraud.”

Please be guided accordingly.

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