Legislators in the US look set to make the act of counterfeiting letters of credit (L/Cs) a criminal offence.

They are doing this because they believe computer technologies have made it far too easy to generate false L/Cs as well as counterfeit cheques and other negotiable notes.

Easy counterfeiting

The Maryland state Senate has given preliminary approval to a bill that would make it a felony to counterfeit these instruments and allow suspects to be investigated and prosecuted in any area of the state where the crime occurred or where the victim lives or conducts business.

The legislation is apparently a response to reports that counterfeiting of financial instruments has increased fivefold since 1996 as a result of advancements in computer technology, which have made it easier to produce fake notes and documents.

Treasury concerns

Separately, the US Treasury has expressed concerns that computer technology is increasingly employed to create documents used in so-called advance fee fraud schemes.

Computer generated false L/Cs, payment schedules and bank drafts as well as official-looking letterheads and seals of governments or financial institutions routinely feature in these schemes according to treasury experts.

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