It’s involved consumers committing foolish acts such as leaving their blank checks lying around to be stolen and forged, throwing their canceled checks and bank statements away in the trash, or some retail crook in a store altering the amount of a check after you’ve paid for the merchandise.

Since a recent American Bankers Association survey, the actual number of cases has zoomed by more than 60 percent to 447,342 cases in one year. The average loss per case stood at about $1,500, with large banks accounting for 90 percent of the losses. Small community banks’ share of industry losses remained small, but there’s been an 18 percent increase in the past few years.

One of every three check frauds involves a forgery, where the thief imitates the maker’s signature and/or endorsement. Next come insufficient funds (NSFs)---bounced checks that customers never pay---and third, counterfeit checks that are cranked out by a thief’s high-tech office equipment such as color copiers and fancy software.

You’re probably not aware that these crimes have become such a huge business. Ernst & Young, the big accounting firm, estimates that each year more than 500 million checks are forged. The federal government’s Office of the Controller of the Currency says every year financial institutions lose about 12 times more money from check fraud than they do from robberies.

Can you get hurt real badly from a forgery? Oh, yes. I once wrote about how one reader, Bobby, was hit when an ex-girlfriend and her buddies stole some of his blank checks while he was out of town. They forged his name on three checks totaling $9,000 and cashed them. Only seven months later did Bobby report that his bank was finally going to give him all his money back after trying to settle for only half the amount!

Problem is, if you become a check fraud victim, you may not discover it until it’s too late, It may take days, or even weeks, before you’re aware of it. You may not be able to report the crime when it happens---not until you receive an overdraft notice from the bank or study your monthly bank statement and spot the theft. Or, you might try to cash a check at your institution and be told that your account balance is down to zip.

Rule #1: Check your checking balance two or three times a month. Not only will you be better able to monitor your account activity, you may stop the same thief from continuing on a crime spree. Most check fraud happens during the big holiday shopping months, between October and February.

What you should do:
- Guard your checkbook and buy a shredder. Shred old, unwanted canceled checks and statements.

- Never, ever, imprint your Social Security and driver’s license numbers on your checks. Believe it or not, some people do.

- Don’t endorse the back of any check until you’re ready to cash or deposit it, or make another transaction. Don’t throw away old, unused, imprinted checks that the crook could pull out of your trash.

- If you believe you’ve been ripped off, notify your local police immediately as well as your bank. Also contact the FTC’s Office of Consumer Protection at www.ftc.gov.

On a whole different subject, know that credit card outfits often won’t reveal their terms and conditions until after you apply for a card. Beware---never apply until you’re told ALL the rates, fees and penalties. They may dangle a lowball rate, and then, after you apply and they check your credit record, jack up the rate to the heavens. Plus, if you miss a payment during the introductory period---usually six months---they can increase your rate immediately.

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Robert K. Heady is co-author of “Complete Idiot’s Guide to Managing Your Money.“ He invites mail on consumer money problems but cannot respond to all inquiries. Email  jrnl8888@aol.com or write to P.O. Box 14875. North Palm Beach, Fla. 33408