How to Prevent Check Tampering
Check tampering and other forms of check fraud have become increasingly prevalent in recent years, with both individual consumers and businesses large and small falling victim. On the consumer side, technology allows criminals to alter a blank check from a checkbook, a canceled check not properly discarded or a check already filled out sitting in a mailbox.
However, some believe that businesses are a much larger target of fraud professionals. Payroll checks are a favorite of counterfeiters. The Uniform Commercial Code now requires business owners and managers to ensure checks are secure. Both consumers and businesses can take simple steps to prevent check tampering and other fraud schemes.
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Instructions
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Consumer Prevention
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Require checks to be endorsed and secured by a reputable financial institution. Security measures should be incorporated into the physical check.
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Store checks, deposit slips, bank statements and canceled checks in a locked location.
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Destroy canceled checks, account statements, deposit tickets and ATM receipts.
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Limit the amount of personal information printed on checks and fill them out completely. Don't include a Social Security number, driver's license, credit card number or telephone number. Don't leave blank spaces on the payee and amount lines. Don't make checks payable to cash.
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Fill out checks with gel pens, like the Uni-ball 207, that contain tiny particles of color that are trapped into the paper. It makes check washing a lot more difficult.
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Deposit checks using pre-printed deposit slips. Don't endorse checks until cashing them.
Business Prevention
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Order checks and deposit slips through an established source, making sure checks include security features.
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Secure all reserve checks, deposit slips and other banking documents in a locked building. Keep blank checks secure at all times and limit the number of employees with access.
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Perform reference and background checks on prospective employees to avoid hiring someone with a history of fraud. Have employees bonded.
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Change building locks when an employee is discharged.
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Assign check-writing duties to more than one employee. Limit the number of official signers. Notify the bank when an employee is no longer authorized to sign checks. Don't allow the same person who balances bank statements to issue checks.
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Require more than one signature on checks for large dollar amounts.
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Conduct random audits.
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Tips & Warnings
Don't mail bills from the mailbox. Criminals can easily remove the check and alter it to photocopy and repeatedly cash it, scan and alter it or chemically alter it. The Post Office is the best location from which to mail sensitive information.
When ordering checks, make sure they arrive within the estimated arrival window. Report missing checks or a lost order immediately.
Don't give any personal information over the phone, especially for unsolicited phone orders.
Failure to balance checking accounts promptly after receiving a bank statement, or failure to report fraud promptly, may result in the consumer or business being held liable for the check fraud.
References
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