Check fraud occurs more than we like to admit it. At times, it’s completely unintentional. Say a college student attempts to pay rent by writing a check —forgetting that he “accidentally” spent two hundred dollars the night before. Or maybe you misplaced your current checkbook and tried to use an old account to pay a bill without thinking much of it.

To prosecute, the check fraud must have been done intentionally. There are several different scenarios where someone may attempt to trick you, and if you’re left with a bad check, you need to fully understand the law to prosecute successfully.

If someone managed to pull the wool over your eyes, and you find yourself with a bounced check, you have the right to press charges. That individual could be facing a severe criminal offense on their record, and you could be guaranteed inflated compensation. Not only will they be liable to pay the amount they promised —but now they have to double it. Couple that with what they’ll pay in attorney fees, court fees, and fines and they’re facing a much bigger headache than just paying their bills.

Types of Check Fraud

Check fraud is processed under Arizona’s laws for Fraud and Forgery. Forgery alone is a Class 4 felony and comes with up to four and a half years of jail time. It pertains to the first kind of check fraud, which is when someone uses a fake signature or fake ID to sign a check. While fake ID offenses are typically tied to minors, it is a crime in itself to own one, and this charge will likely aggravate your sentence.

The next type of fraud is Paperhanging which is when someone knowingly writes bad checks from an inactive bank account. Because the major signifier in these cases is whether or not the person knowingly committed check fraud this situation will almost undoubtedly lead to prosecution.

Printing counterfeit checks is another type of fraud, but again closely linked to forgery. If the counterfeit check was used to make a payment of over five thousand dollars, the defendant will be looking at serious consequences.

Finally, the most complicated form of check fraud is check kiting. Check kiting is when an individual writes a bad check from a bank account that does not have the required funds, and deposits them into another bank account. They must act quickly to then withdraw the funds from the second account before the first check has fully processed, but it happens more often than you think.

When to Prosecute

As mentioned if you’re looking to prosecute, the individual in question must have intentionally committed the crime. Even if they won’t initially admit it, there are two cases in which we can assume they knowingly committed fraud. The first is if they did not have an open account at the bank they signed from when they issued the check.

The second pertains to if the individual issues the check, and within thirty days the bank fails to issue the required funds. In this situation, the party demanding the funds must notify the individual, who will then have twelve days to come up with the full payment. If a greater balance has accumulated since the check bounced the individual will be responsible for this amount as well.

What Are The Charges for Check Fraud

If the check amount is less than five thousand dollars the individual will face a Class 1 Misdemeanor. This sentence can mean up to 6 months in jail with probation or community restitution. In addition, the individual could be responsible for up to $2,500 in fines with surcharges of up to 84%.

If the check amount is for more than five thousand dollars the punishment greatly increases. The defendant will have 60 days to come up with the money, and if they cannot, will face a Class 6 felony. This can mean 1 year in jail time, or up to 2 years in prison. If this is not their first charge of criminal check fraud they will face greater punishments. By their third offense, they could be facing almost 6 years in prison.

If the individual managed to secure property or goods with a bad check, they’ll be responsible for returning it, and could face a more serious criminal charge. If the property was less than $1,000 they’ll face a Class 1 misdemeanor, but anything above that will be considered a felony. If they secure $25,000 or more in goods or services they’ll automatically face a Class 2 felony.

Life After Check Fraud

According to Arizona law, individuals charged with check fraud may still fall under the Statute of Limitations. Anyone charged with a Class 1 misdemeanor will face a one-year law of constraints, and anyone with a Class 6 felony will face a seven-year law of limitations. From here, the party demanding payment could still take the individual to civil court to secure their funds, but the criminal charges against them will be dropped.

Knowing what to do when you receive a bad check can be difficult, especially if you’re a small business, organization, or landlord. With the increase in check fraud cases around the state, organizers have created several Bad Check Programs to help individuals secure their funds. You’ll qualify for these programs if the check you’re demanding was issued 31-90 days ago, and for an amount under $5,000.

In addition, it’s important to stay on top of your accounts, because you must issue the fraudulent check holder 10 days notice to try to pay the funds in full, from the day you tried to process the check. If they cannot pay this amount in 12 days, they will be responsible for either double the amount or an additional $50 —whichever is greater.

How To Protect Yourself From Check Fraud

There are several ways to avoid accepting a fraudulent check and skipping this whole headache in the first place. Trust your gut, and never accept a check if you’re feeling uneasy about the situation. Never accept a post-dated check or a check with mismatched names.

If you can, create a check acceptance policy ahead of time. This will help you collect the issuer’s name, phone number, driver’s license number, and email address —which may be crucial details when it comes time to track them down.

Remember that check fraud doesn’t always occur purely on the individual level, and in Arizona businesses can also be prosecuted for fraud and forgery. Counterfeit checks may include a fake telephone number for a business, and it’s best to research the company online if you have any suspicions. If you know for a fact you’ve received a bad check the first thing you need to do is reach out to the offender. Issue them their 10-day notice, and from there consult with legal aid to ensure you secure the money you’re owed.