Press Release 2010
UOB (Malaysia) launches Cheque Writer Service to help customers guard against cheque fraud losses
Recent cheque fraud cases affirms Bank’s customer-centric approach in providing banking solutions and the timeliness of such a service
Kuala Lumpur, 10 December 2010 - United Overseas Bank (Malaysia) Bhd [UOB (Malaysia)] has launched a Cheque Writer Service which can help its corporate customers effectively protect themselves against cheque fraud and prevent financial losses.
The new service turns the idea of cheque-writing on its head. This is because under the new service, customers no longer write a cheque in the conventional sense. Instead, the Cheque Writer Service password-protected software is stored on the customer’s computer. Customers can use this software to print cheques accurately and safely. When a customer issues a cheque with Cheque Writer Service, information on the payees, amounts, account number and cheque number are submitted to UOB (Malaysia). During clearing, if any of the information on the physical cheque presented does not match the details sent to the bank, the cheque will be rejected.
This approach can deter potential fraudsters who tamper cheques to illegally access funds.
One of the first corporate customers to sign up for the service, Ms Yap Mei San, Director of Original Classic Enterprise Sdn Bhd said, “We find the Cheque Writer Service convenient and user-friendly. We issue a number of cheques monthly. The security features really adds value for us as it gives us peace of mind.”
Recent media reports have highlighted how cheques sent through the mail have been intercepted and tampered with, resulting in senders suffering monetary losses. These fraudsters were able to change the written instructions on the cheque, including the payee’s name, the date and even the amount.
Cheque fraud covers a gamut of forms, including altering the name of the payee, the amount, forged signatures and mis-use of pre-signed cheques. When properly implemented, UOB (Malaysia)’s Cheque Writer Service will be effective against cheque fraud, as it will only accept cheques whose information matches exactly with the information submitted by the customer when it issues the cheque.
“We recognise that in certain businesses and industries, manual cheques are still required. The Cheque Writer Service, can help protect our customers from unnecessary losses as it is able to detect fraudulent cheques by only accepting cheques with information that matches the information with UOB (Malaysia). It also offers ease of issuance for frequent and recurring payments, as clients will not need to manually write out the cheques,” said Mr. Andre Lee, Senior Vice President and Head of Transaction Banking Division.