Consumer & Business Check Fraud Tips
Consumer Check Fraud Tips:
Criminals love to get their hands on someone else’s paper checks. Other than electronically, there are three ways a fraudster can use paper to wipe out your checking account:
1.When they steal your blank checks from the mail, your home, office, purse or wallet;
2.When they get one of your real checks and make some more, by counterfeiting them; and
3.When they get a check you have written to someone—like a business—and they use
chemicals to remove "your" ink. This allows the thief to make the check out to
themselves and/or raise the amount of the check.
KNOW THIS:
• Criminals steal mail from curbside boxes
• There are 85 common chemicals criminals can use—like nail polish remover—to remove the
ink from your check.
• Monitor your account frequently, especially if you have a debit card.
ABSOLUTES:
When reordering checks or opening a new account:
• Be gender mysterious. Use your first initial and last name. This makes it harder for
identity thieves to pose as you, because they don't know whether to impersonate a
man or a woman.
• Never print your social security number, date of birth, driver’s license number or telephone
number on your checks.
• Upgrade your new checks to “security” checks. They are more difficult for criminals to alter
because chemicals make obvious stains on these types of checks.
• Do not have the checks mailed to your house. Have the checks mailed to your local bank
branch and request a call when they are ready for pick-up.
When using paper checks:
• Use ink that is difficult to remove from paper. Using “gel” ink pens is recommended.
• Be consistent with your signature.
• Fill in all spaces. Do not leave room for someone to add extra digits or words.
• Use paper checks for paying reputable persons or entities only. Do not write checks to the
person selling magazine subscriptions door-to-door, or the person going through the
neighborhood painting numbers on curbs.
• Shred cancelled and unused check stock, even if the bank account has been closed. A
thief can still spend using a check from a closed account.
• Keep unused checks under lock and key. You don't want to expose blank checks to
people performing services in your home or office.
Business Check Fraud Tips:
In spite of a drive to create a paperless monetary system, paper checks will be around for a while. This unfortunately provides a degree of vulnerability because criminals love to get their hands on business paper checks.
Sure cyber criminals can make withdrawals from your account electronically—from remote locations. And they can tap into your business account through an ATM. But they can also take advantage of a business that doesn’t take precautions with paper checks.
CRIMINALS CAN:
• Steal your blank checks and use them.
• Counterfeit your checks.
• Use common chemicals to “wash” and alter checks you have made and used to pay for
goods or services.
The following tips are suggestions to prevent paper check fraud. When opening a new account or reordering stock:
• Have the bank hold the checks at the bank, rather than mailing them to your residence or
place of business.
• Order security checks with a minimum of 8 security features including:
• Microprinting
• Thermochromatic Ink that disappears when fingertouch body heat is applied and
reappears as the check cools
• Paper that stains when “bleaching” chemicals are applied.
• Toner Anchorage that hot laser toner bonds to.
• Watermarks
• Ultraviolet sensitive ink and fibers
When printing checks:
• Use a laser printer for text and an ink jet printer for images.
• If writing checks use a Gel ink pen.
• Use the manufacturer’s recommended toner and temperature settings.
• Put an expiration date on the check.
• A bold font of 12 or 14
Additional Tips:
• Never type a check
• Lock up check stock
• Use “Positive Pay” if possible
• Monitor your account. Check the balance daily.
• Have statements mailed to an off-business site.
• Separate accounting tasks. Check writers should not reconcile the account.
