A closer look at security features used for combatting check fraud

By Elise Hacking Carr

Checklist

Relyco, located in Dover, N.H., offers  numerous security features across its line  of checks (ULTRACHEK, BASICHEK,  MAGNACHEK, PROCHEK+PLUS, FUTURACHEK AND DETERACHEK).

To help customers determine the best option(s) for their needs, Relyco provides the following resource guide:

✔ Simulated Watermark: The white ink cannot be copied or scanned and can only be seen at an angle.

✔ Microprinting: Words are printed so small that they appear as a line to the naked eye, making it extremely difficult to duplicate with a copier.

✔ Padlock Security: On the front of the check, the icon alerts the teller of the security features. On the back of the check, the security features are then detailed for the teller.

✔ Non-Negotiable Stub Backer: “Non-Negotiable” is printed on the back of the check to prevent fraudulent use.

✔ Endorsement Warning: Alerts the teller and/or check recipient to the presence of security features, which can be verified before processing the check.

✔ Anti-Splice Backer: Horizontal or diagonal lines of varying thickness and words are printed on the back of the check, making it difficult to alter information by the cut-and-paste method.

✔ Copy-Void Endorsement: When an endorsement is photocopied, the word VOID appears on the copy.

✔ Voidless Postal Window: The void has been removed in the addressee area for postal compatibility.

✔ Copy-Void Pantograph: When a check is photocopied, the word VOID appears on the copy.

✔ Covert Fluorescent Fibers: Invisible fibers in the paper that “glow” when held under an ultraviolet light.

✔ Enhanced Toner Adhesion: Special surface treatment used to enhance adhesion of toner to the paper so images cannot be lifted or scraped from the document.

✔ Solvent-Reactive Color Spotting: Reacts to solvents that may be used to alter the paper, resulting in a chemical stain.

✔ Warning Band: Alerts the teller and/or the check recipient to the presence of security features that can be verified before processing the check.

✔ Gradient Two-Color Background: A multicolor background in which two colors change density and blend into each other, making it difficult to alter without detection.

✔ Multi-Language Chemical Void: When chlorine is used, the word VOID appears in six languages, making it difficult to alter.

✔ Thermochromic Heat-Reactive Ink: Temperature-sensitive ink that causes the color to fade to white when held between fingers.

✔ Fourdrinier True Watermark: Creates images within the paper that are visible when held up to an ordinary light source.

✔ SECURATEK Copy Protection Technology: Makes the reproduction of protected documents virtually impossible on a digital color copier.

✔ Coin-Reactive Paper: Invisible layer changes color when scratched with a coin.

*Information courtesy of Relyco. For more details, visit www.relyco.com.

When we're little, we don't have to be concerned with "grown-up" issues like check fraud. Many children only think about checks when a relative gives them one and they get to cash it or deposit it to a savings account. Unfortunately, we can't stay young forever. Soon enough, we are forced to confront some harsh realities that involve counterfeiters and defrauders.

According to the 2012 AFP Payments Fraud and Control Survey, checks remain the payment type most vulnerable to fraud attacks, with 62 percent of respondents incurring incidence of fraud and 26 percent of respondents indicating they have been hit by frequent check fraud attacks. While there may not be a simple solution to erase the problem completely, there are precautions companies can take to protect themselves.

Here, Christian Simko, director of product marketing & communications, Relyco, Dover, N.H., shared his thoughts on this growing problem.

Print Professional (PP): Has check fraud declined, remained stable or increased over the last year?
Christian Simko (CS): You would think check fraud would be in decline [because] the use of paper checks is declining. But from what we're hearing and [based on] the demands from our customers, it seems that check fraud has been increasing. The state of the economy is probably the major factor in the increase of check fraud. Other reasons why check fraud may be increasing are that checks are harder to tamper with and that there are better ways of detecting fraud. So, it may also be a case of a rise in fraud detection rather than a rise in actual fraud.

PP: How can defrauders tamper with checks? What are some popular tactics?
CS: There are many ways to tamper with a check, and the success of those actions can be tied to how secure or unsecure the check is. Popular tactics are photocopying/scanning and changing information on the check by rubbing the toner off. Probably the most  effective tactic is the theft of blank check stock by employees who then attempt to write their own checks. In that case, it is very tough to detect fraud. Security cannot just stop with features on the check—you must practice secure processes for storing and writing checks.