6 Ways To Prevent Check Fraud

Because the creation of the check, individuals have been constantly developing new ways to pass deceptive checks. The National Check Fraud Center approximates that 1.4 million fraudulent checks are written each day, costing companies over 10 billion in losses each year. With the introduction of MICR toner and desktop laser printers, anybody with the best software application, an HP LaserJet printer and blank check stock can print a check.

As a business owner, you and your business are vulnerable to inspect scams; nevertheless, there are methods to defend against it. Here are 6 actions that you and your company can follow to successfully prevent check scams.

1. Print Your Own Checks– Real Time – The primary advantage to printing yourself is security. Traditionally a service orders examine stock from a business like Harland or Deluxe and they put the checks in a supply room or closet. These unused checks are a goldmine for any disreputable individual that runs across them – all they have to do is grab a check from the bottom of the pile, remove it. In all likelihood, you’ll never ever know that last check is missing out on till at least a month later, and that’s if you are lucky and you routinely reconcile your check book and analyze each transaction. Because that’s precisely what took place to us, we understand.

In 1993, we had a worker that unwisely stole the last page in our check book. Our Ex-Employee filled them out to herself and passed them as payroll checks at a used vehicle dealership. She did get that cars and truck and several weeks later my partner’s wife saw the uncommon checks.

By printing your own checks you only stock blank check stock and a MICR toner cartridge. There is absolutely nothing to steal with your account information, they have absolutely nothing however a piece of blank check paper. Of course you are still open to a new type of fraud if somebody has the ability to access your check printing software. Make certain it’s password protected and your network rights are setup so that regular users can’t access the directory that it resides in.

Another excellent benefit of printing your own checks real time is that if you move our modification bank accounts, you lose nothing. Simply modify your address or account numbering in your check printing software and you’ve made the switch– No squandered checks, no squandered cash, no waiting on new checks.

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

Photo Copier Void Pantograph– This triggers the word VOID to appear in the background of a check when copied. 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 exact that deep space is not visible to the human eye, however when copied or scanned they appear making the copied check useless.

구글seo Micro Printed Border– This exact same technology is utilized on new US currency – magnify the border line around the picture on the face of among the newly designed United States costs and you will see the border that appears to be a line is really consisted of words. Even modern high resolution printers can not replicate type this small.

Chemically Reactive Check Paper– A typical method to deface a check is to use chemicals to get rid of the existing composing to alter the amount or to whom a check is composed to. Chemically reactive check paper will alter colors when it comes in contact with solvents or chemicals making the check unusable.

When held up to the light, Watermark– Check paper with a true watermark will reveal up. A watermark will not be visible on a copied or scanned check.

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

3. Positive Pay File Transmittal– A terrific method to stop check fraud is to generate a favorable pay file and transfer it to your bank. Each time you print a batch of checks, you send 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 transformed or a check is duplicated the bank will reject it. Positive pay is relatively typical in big companies, but a small business 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 avoiding check fraud is eliminating, or a minimum of, reducing access to files with your bank account number on them.

Mail Theft– Mail theft is a very common method checks

Given that the development of the check, individuals have actually been constantly inventing new methods to pass deceptive checks. With the advent of MICR toner and desktop laser printers, any person with the right software, an HP LaserJet printer and blank check stock can print a check.

Buy Secure Check Stock– When picking a blank check stock, make sure the check stock is loaded with security functions– this will make it challenging for a fraudster to copy or scan the check. Every time you print a batch of checks, you transmit a favorable pay file listing the checks and their quantities to your bank. If a check amount is transformed or a check is duplicated the bank will decline it because it does not match the positive pay file.