What do we mean when we think about check fraud? It is one of the biggest challenges that most businesses and financial institutions face. This is due to counterfeiting through desktop publishing and copying to create or duplicate a check. There are several types of check fraud; forgery, forgery and alteration, hanging, kite checks. Forgery occurs when an employee writes a check without proper authorization. Counterfeiting is fabricating a check while altering refers to the use of chemicals and solvents such as acetone, brake fluid, and bleach to remove or change the information on a check. Paperhanging means writing or ordering checks on closed accounts. Check Kiting opens accounts in two or more locations and uses the "floating time" of available funds to create fraudulent balances. When it comes to internal control within the accounting role, having a separation of duties is very important to keep this internal control in place. The person who generates the checks within the accounting department is not the same person who will sign the checks. The person who is usually the signatory would be the company's controller, president, or whoever is in charge of taking on this check signing function. This separation of these duties works well if the check signer provides all the necessary documents such as invoices in which these checks are processed. Internal control systems are rules and regulations that the company uses to confirm that its financial reporting is reliable, that its operations are effective and efficient, and that it complies with applicable laws. To prevent fraud and pay only what any business needs, the check signer must confirm any backup documents on......half of paper......and a name that may be very similar in the name a real vendor used by your organization. Then the accountant can generate checks/payments to that supplier with a slight name change, get the signature and deposit them into this personal account. To prevent anyone within the company from committing fraud, the company needs to perform due diligence and have all internal controls in place. Works CitedHenry & Horn (2009) - Preventing Fraud – A Check Signer's Responsibilities - http://www.hhcpa .comAppendix 6.1: Internal controls for liquidity. (2013). In James Wahlen, Jefferson Jones and Donald Pagach., Intermediate Accounting, (pp. 6_32-6_36). Mason, OH: Southwestern. Retrieved November 25, 2013, from the Cengage Learning eText collection. via eTextNational Check Fraud Center of Cengage Learning (1995-2011) – Check Fraud Prevention - http://www.ckfraud.org