Annika created checks to a local vendor and had her boss sign them, then altered the checks with correction fluid to cover the vendor's name and increase the amount, and then cashed the checks. What kind of scheme did she commit?

• A. A forged maker scheme
• B. An Altered Payee Scheme
• C. A forged endorsement scheme
• D. A cash larceny scheme

Answer: (B)

This question centers on a check fraud type where the payee and/or the amount on a check is altered after issuance to redirect funds. By having her boss sign checks and then using correction fluid to change the vendor’s name and increase the amount before cashing them, she manipulated the instrument to pay someone other than the intended recipient and for more money than authorized. That behavior is the essence of an altered payee scheme, where the incentive is to deceive by altering the payment details on a completed check. It’s different from forging the maker’s signature or forging an endorsement, and it’s not simply cash being stolen after receipt.