6 Ways To Prevent Check Fraud

Considering that the innovation of the check, people have been continuously inventing new methods to pass deceitful checks. The National Check Fraud Center estimates that 1.4 million deceptive checks are composed each day, costing companies over ten billion in losses annually. Deceitful check authors have found a friend in new technology such as color copiers, high resolution scanners and magnetic or MICR toner. MICR stands for Magnetic Ink Character Recognition, and it describes the magnetically encoded line at the bottom of each check. Traditionally, this line might only be printed with an extremely specialized magnetic ink on a balanced out press. Nevertheless, with the development of MICR toner and desktop printer, anybody with the right software application, an HP LaserJet printer and blank check stock can print a check.

구글seo As a business owner, you and your company are susceptible to check scams; nevertheless, there are ways to guard against it. Here are 6 actions that you and your company can follow to successfully resist check fraud.

1. Print Your Own Checks– Real Time – The main benefit to printing yourself is security. Traditionally a service orders examine stock from a company like Harland or Deluxe and they put the checks in a supply space or closet. These unused checks are a goldmine for any unethical individual that stumbles upon them – all they need to do is grab a check from the bottom of the stack, remove it. In all likelihood, you’ll never ever know that last check is missing till at least a month later, which’s if you are lucky and you frequently reconcile your check book and analyze each deal. Because that’s exactly what happened to us, we understand.

In 1993, we had an employee that unwisely took the last page in our check book. We never ever knew they were missing. Our Ex-Employee filled them out to herself and passed them as payroll checks at a used cars and truck dealer. She did get that vehicle and several weeks later on my partner’s spouse discovered the uncommon checks. Had she not noticed the problem who understands just how much more money would have been stolen before we got smart to it. Long story short the bank needed to eat the bad checks and they wasted no time making certain the case was prosecuted to the complete degree of the law. We were lucky and it only cost us time. Had actually the staff member been licensed to sign checks we would have lost the money.

By printing your own checks you only stock blank check stock and a MICR toner cartridge. There is absolutely nothing to take with your account info, they have absolutely nothing however a piece of blank check paper.

Another excellent advantage of printing your own checks real time is that if you move our modification checking account, you lose absolutely nothing. Simply edit your address or account numbering in your check printing software application and you’ve made the switch– No lost checks, no wasted cash, no waiting for brand-new checks.

Purchase Secure Check Stock– When selecting a blank check stock, make sure the check stock is packed with security features– this will make it tough for a fraudster to copy or scan the check. Many of these very same security functions are now available for check stock.

When copied, photo copier Void Pantograph– This causes the word VOID to appear in the background of a check. A Void Pantograph is created by engraining a precision pattern of lines and dots in the background of the check. The printing of the pantograph is so accurate that deep space is not noticeable to the human eye, but when copied or scanned they appear making the copied check ineffective.

Micro Printed Border– This very same technology is used on new United States currency – amplify the border line around the portrait on the face of among the freshly designed United States costs and you will see the border that seems a line is really comprised of words. Even modern-day high resolution printers can not recreate type this little.

Chemically Reactive Check Paper– A typical method to deface a check is to use chemicals to eliminate the existing composing to change the amount or to whom a check is composed to. When it comes in contact with chemicals or solvents making the check unusable, chemically reactive check paper will change colors.

When held up to the light, Watermark– Check paper with a real watermark will show up. A watermark will not show up on a copied or scanned check.

Listing of security features– An excellent check stock will list the security includes on the back of the check. What good is a security feature if no one understands what security functions to try to find?

3. Positive Pay File Transmittal– A great way to stop check fraud is to produce a favorable pay file and transmit it to your bank. Whenever you print a batch of checks, you transfer a favorable pay file listing the checks and their total up to your bank. Because it does not match the favorable pay file, if a check amount is modified or a check is duplicated the bank will decline it. Positive pay is relatively typical in big companies, but a small company might not have the resources or the software application to produce the file and transmit it. Contact your bank about this service.

4. Examine Storage/ Access– One secret to preventing check fraud is eliminating, or at least, decreasing access to documents with your savings account number on them.

Mail Theft– Mail theft is a really common method checks

Because the development of the check, people have actually been constantly developing new methods to pass fraudulent checks. With the advent of MICR toner and desktop laser printers, anyone with the best software, an HP LaserJet printer and blank check stock can print a check.

Purchase Secure Check Stock– When choosing a blank check stock, make sure the check stock is packed with security functions– this will make it tough for a scammer to copy or scan the check. Every time you print a batch of checks, you transmit a favorable pay file noting the checks and their amounts to your bank. If a check quantity is altered or a check is duplicated the bank will decline it since it does not match the positive pay file.