There are certain simple rules which, if observed in drawing checks, will greatly lessen the danger of fraud, particularly in the raising of checks. The writing in the body of the check should agree exactly with the figures used to indicate the amount for which the check is drawn. The paying teller must be able to tell that the signature on the check is not a forgery and that the amount for which it was drawn has not been raised. Signatures of customers doing an active and regular business are easily remembered. Reference to signature files is generally necessary only in the cases of infrequent depositors and checks of corporations where only specified officials are authorized to sign. If the paying teller pays a forged check then the bank is liable. If he pays a raised check the bank is liable for all over the original amount the check was drawn for. It is sometimes very difficult to determine whether a check has been altered. Sometimes checks are so very carelessly drawn that it is a simple matter to change them. In some jurisdictions depositors are liable where they draw checks carelessly and make fraud easy, but such carelessness or fraud must be clearly proved, as the courts are generally inclined to favor depositors rather than banks. The use of safety paper (a paper with a thin coating on it that makes any erasure noticeable) is becoming more common. Checks written in pencil are not prohibited, but there is much danger in using pencil, as the writing may be easily altered. Bankers should take care to have their checks printed in such a way that the possibility of fraud will be lessened. They should also inform the customer as to the best way of writing checks. Good ink and plenty of it should be used. It will pay the bank to furnish safety paper, even though it does cost a little more. The figures should be written close up to the dollar sign ($) and should be made strong and prominent, and the "No/100" should be made in such a way that there will be no room left for other ciphers. All spaces should be filled with a clear, wavy line. Care should be taken in issuing checks to strangers. Checks for small sums are sometimes obtained for the purpose of raising the amount. Protective devices, a number of which are now sold, should be used if possible. The stub should be filled out first; otherwise it might be forgotten and the maker or drawer of the check would have no record of it. The stub and check should be drawn exactly alike. Signatures should always be written in the same way and the same style of letters should be used. It will help if the same style of pen is used in all cases. The name should always take up about the same space, and should not be sprawling one time and small the next. The same form should be used for the given name or initials - not John Smith one time, John T. Smith the next, and then J. T. Smith.

Counter Check, Furnished By The Bank, To Be Used Only In The Bank Itself For Counter Use Only Not Negotiable

(These Words Printed in Red Ink)

Statetown................192.....

Received In Person From

State National Bank of Statetown

To Be Charged To My Account .................................................. Dollars, $.........................

......................................................................................

An Incorrectly Drawn Check

Statewood, Ind., Dec. 17, 1921. No. 3675

The Statewood Bank 17-81

Pay to the order of T. L. Wright $10

Ten Dollars.

John T. Smith.

...............................

Check Correctly Drawn

No. 3675 Statewood, Indiana, Dec. 17, 1921.

The Statewood Bank 17-81

Pay to T. L. Wright---------------------or order

Ten 00/100 ______________________Dollars $10. 00/100 John T. Smith.