6 Ways To Avoid Check Scams

Given that the innovation of the check, individuals have been continuously developing new methods to pass deceitful checks. The National Check Fraud Center approximates that 1.4 million deceitful checks are written every day, costing organizations over 10 billion in losses each year. Deceitful check authors have found a good friend in new innovation such as color copiers, high resolution scanners and magnetic or MICR toner. MICR means Magnetic Ink Character Recognition, and it refers to the magnetically encoded line at the bottom of each check. Generally, this line could only be printed with an extremely specialized magnetic ink on an offset press. Nevertheless, with the advent of MICR toner and desktop printer, anybody with the best software application, an HP LaserJet printer and blank check stock can print a check.

As an entrepreneur, you and your business are prone to inspect fraud; nevertheless, there are methods to defend against it. Here are 6 steps that you and your company can follow to effectively defend against check fraud.

1. Print Your Own Checks– Real Time – The primary advantage to printing yourself is security. Generally an organization orders check stock from a company like Harland or Deluxe and they put the checks in a supply room or closet. These unused checks are a goldmine for any disreputable person that stumbles upon them – all they need to do is get a check from the bottom of the pile, remove it. In all probability, you’ll never know that last check is missing till at least a month later on, and that’s if you are fortunate and you regularly reconcile your check book and examine each transaction. We understand since that’s exactly what occurred to us.

In 1993, we had a staff member that unwisely stole the last page in our check book. We never ever knew they were missing out on. Our Ex-Employee filled them out to herself and passed them as payroll checks at a used automobile dealership. She did get that car and several weeks later on my partner’s partner observed the uncommon checks. Had she not saw the issue who knows just how much more cash would have been stolen prior to we got smart to it. Long story short the bank needed to consume the bad checks and they lost no time at all making sure the case was prosecuted to the complete extent of the law. We were lucky and it only cost us time. Had actually the staff member been authorized to sign checks we would have lost the money.

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

Another great benefit of printing your own checks actual time is that if you move our change checking account, you lose absolutely nothing. Simply modify your address or account numbering in your check printing software and you’ve made the switch– No wasted checks, no squandered cash, no waiting for brand-new checks.

2. Purchase Secure Check Stock– When picking a blank check stock, ensure the check stock is filled with security features– this will make it difficult for a fraudster to copy or scan the check. Recently the US treasury department spent millions adding security includes the newly upgraded notes. A lot of these exact same security features are now readily available for check stock. Here are some security includes to look for in check paper:

Photo Copier Void Pantograph– This causes the word VOID to appear in the background of a check when copied. A Void Pantograph is developed by engraining an accuracy pattern of lines and dots in the background of the check. The printing of the pantograph is so accurate that the VOID is not noticeable to the human eye, however when copied or scanned they appear making the copied check useless.

Micro Printed Border– This exact same innovation is used on brand-new US currency – amplify the border line around the picture on the face of one of the freshly developed US bills and you will see the border that seems a line is really comprised of words. Even modern-day high resolution printers can not replicate type this little.

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

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

Listing of security functions– A good check stock will note the security features on the back of the check. What great is a security function if nobody understands what security features to search for?

3. Favorable Pay File Transmittal– A fantastic method to stop check fraud is to produce a favorable pay file and send it to your bank. Whenever you print a batch of checks, you transfer a favorable pay file noting the checks and their total up to your bank. 구글백링크 If a check quantity is modified or a check is duplicated the bank will reject it since it does not match the positive pay file. Favorable pay is relatively common in big business, however a small business might not have the resources or the software to produce the file and transmit it. Contact your bank about this service.

4. Examine Storage/ Access– One key to avoiding check scams is removing, or a minimum of, reducing access to documents with your bank account number on them.

Mail Theft– Mail theft is a very common method checks

Considering that the creation of the check, individuals have actually been constantly creating brand-new ways to pass deceptive checks. With the advent of MICR toner and desktop laser printers, anybody with the ideal software, an HP LaserJet printer and blank check stock can print a check.

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