| 1. | Demand drafts are frequently used to purchase items over the phone, from telemarketers.
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| 2. | In US, remotely created cheques are also called demand drafts.
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| 3. | A demand draft can also be compared to a cheque.
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| 4. | Banks report that demand draft fraud is becoming more common.
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| 5. | Demand drafts entail a large potential for fraud.
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| 6. | Demand drafts can only be made payable to a specified party, also known as pay to order.
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| 7. | However, demand drafts are difficult to countermand.
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| 8. | Demand drafts are also a popular method for lending institutions to attempt to collect on overdue loans.
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| 9. | Demand drafts are frequently used by consumers instead of credit cards, and large companies also commonly use them.
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| 10. | These include discounted general insurance policies, waiver of bank charges and stamp duty for travellers cheques and foreign demand drafts.
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