Given that the invention of the check, people have been continuously inventing new methods to pass deceptive checks. The National Check Fraud Center estimates that 1.4 million fraudulent checks are composed every day, costing businesses over 10 billion in losses annually. Deceitful check authors have discovered a friend in brand-new innovation such as color copiers, high resolution scanners and magnetic or MICR toner. MICR stands for Magnetic Ink Character Recognition, and it refers to the magnetically encoded line at the bottom of each check. Typically, this line could just be printed with an extremely specialized magnetic ink on a balanced out press. With the arrival of MICR toner and desktop laser printers, any person with the right software application, an HP LaserJet printer and blank check stock can print a check.
As an entrepreneur, you and your business are vulnerable to examine scams; nevertheless, there are methods to defend against it. Here are 6 actions that you and your company can follow to successfully resist check scams.
1. Print Your Own Checks– Real Time – The primary 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 disreputable person that runs across 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 out on up until at least a month later, which’s if you are lucky and you frequently reconcile your check book and analyze each transaction. We know since that’s precisely what occurred to us.
In 1993, we had a worker that unwisely took the last page in our check book. We never knew they were missing out on. Our Ex-Employee filled them out to herself and passed them as payroll checks at a used cars and truck dealership. She did get that cars and truck and several weeks later my partner’s partner noticed the unusual checks. Had she not saw the problem who understands just how much more money would have been stolen before we got smart to it. Long story short the bank had to eat the bad checks and they lost no time making certain the case was prosecuted to the full level of the law. We were fortunate and it just cost us time. Had the staff member been authorized 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 steal with your account information, they have nothing however a piece of blank check paper. Of course you are still open to a new sort of scams if someone has the ability to access your check printing software. Make certain it’s password secured and your network rights are setup so that regular users can’t access the directory site that it lives in.
Another great advantage of printing your own checks real time is that if you move our change bank accounts, you lose nothing. Just edit your address or account numbering in your check printing software application and you’ve made the switch– No wasted checks, no lost money, no awaiting new checks.
2. Buy Secure Check Stock– When choosing a blank check stock, ensure the check stock is filled with security functions– this will make it tough for a fraudster to copy or scan the check. Just recently the US treasury department invested millions including security includes the newly upgraded notes. A number of these very same security functions are now offered for check stock. Here are some security features to look for in check paper:
When copied, photo copier Void Pantograph– This triggers the word VOID to appear in the background of a check. A Void Pantograph is created by engraining an accuracy 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 ineffective.
Micro Printed Border– This same technology is utilized on new US currency – magnify the border line around the picture on the face of among the recently created United States costs and you will see the border that appears to be a line is in fact consisted of words. Even modern-day high resolution printers can not reproduce type this small.
Chemically Reactive Check Paper– A typical way to deface a check is to use chemicals to eliminate the existing writing to alter the amount or to whom a check is composed to. When it comes in contact with solvents or chemicals making the check unusable, chemically reactive check paper will change 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– An excellent check stock will list the security includes on the back of the check. What excellent is a security feature if no one understands what security features to look for?
Favorable Pay File Transmittal– A terrific method to stop check scams is to produce a favorable pay file and send it to your bank. Every time you print a batch of checks, you transfer a positive pay file noting the checks and their amounts to your bank. If a check amount is modified or a check is duplicated the bank will reject it because it does not match the favorable pay file.
4. Examine Storage/ Access– One key to avoiding check scams is getting rid of, or at least, reducing access to files with your checking account number on them.
Mail Theft– Mail theft is an extremely common method checks
Because the creation of the check, individuals have actually been continuously inventing new ways to pass deceptive checks. With the development of MICR toner and desktop laser printers, anybody with the best software, an HP LaserJet printer and blank check stock can print a check.
트래픽 작업 Buy Secure Check Stock– When choosing a blank check stock, make sure the check stock is loaded with security features– this will make it difficult 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 amounts to your bank. If a check amount is modified or a check is duplicated the bank will reject it because it does not match the positive pay file.