CHECK FORGERY

Banks are tasked with the responsibility to guard the depositors and prevent fraudulent withdrawals. To this effect, the banks have put in place various verification methods to ascertain the identity of the drawer and ensure the correctness of the details in the instruments presented before it. Majorly, fraudulent withdrawals usually occur through the Automated Teller Machines (ATMs) services and checks. Banks normally use signature identification to ensure the correctness of the details of the client. Despite this, fraudsters are still able to manipulate the system by forging the signature on checks or altering the details of drawn checks (Geva, 2012). Depositors must guard the bank details and checkbooks from being used by unintended persons, as was decided in the case of†Arrow Transfer v. RBC. However, the banks have the bigger role of safeguarding the depositorsí money. Banks are not protected from liability in the event of a forgery.

 The Uniform Commercial Code (UCC) outli...