Which action is a form of check fraud?

• A. Depositing checks with proper funds
• B. Writing checks on closed accounts
• C. E-filing taxes
• D. Paying a legitimate bill

Answer: (B)

Writing a check on a closed account is a form of check fraud because it attempts to transfer money from an account that no longer exists or can legally cover the payment. The issuer is presenting a negotiable instrument knowing there are no funds to honor it, which is deceptive and illegal. Banks will typically return the check unpaid, and the issuer can face criminal charges, civil liability, and penalties for attempting to defraud the recipient.

Depositing checks with proper funds is a normal, legitimate transaction that settles only when the funds are available. E-filing taxes is a separate, legitimate process, not involving presenting a questionable check. Paying a legitimate bill is simply a normal payment with funds that are or will be available. The action that constitutes check fraud here is the act of writing a check on a closed account.