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Cheque fraud
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=== Embezzlement === While some cheque kiters fully intend to bring their accounts into good standing, others, often known as ''paper hangers'', have pure fraud in mind, attempting to "take the money and run." ==== Bad cheque writing ==== A cheque is written to a merchant or other recipient, hoping the recipient will not suspect that the cheque will not clear. The buyer will then take possession of the cash, goods, or services purchased with the cheque, and will hope the recipient will not take action or will do so in vain. ==== Cheque conversion ==== A cheque is endorsed by a non-payee of the cheque and then cashed or deposited fraudulently. The non-payee will then have cash free and clear, and will hope the true recipient will not find out until much later. ==== Abandonment ==== The paper hanger deposits a cheque one time that they know is bad or fictitious into their account. When the bank considers the funds available (usually on the next business day), but before the bank is informed the cheque is bad, the paper hanger then withdraws the funds in cash. The offender knows the cheque will bounce, and the resulting account will be in debt, but the offender will abandon the account and take the cash. Such crimes are often used by petty criminals to obtain funds through a quick [[embezzlement]], and are frequently conducted using a fictitious or stolen identity in order to hide that of the real offender. This form of fraud is the basis for the [[Advance-fee scam#Fake cheque and cheque cashing scams|Nigerian cheque scam]] and other similar schemes; however, in these cases, the victim will be the one accused of committing such crimes, and will be left to prove their innocence.
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