A little security goes a long way to protect end-users from the bad guys.
Let's face it, no industry is immune from fraudulent activity. In fact, recent reports indicate that the United States suffers more than $200 billion in losses per year due to counterfeiting and duplication. And the situation isn't improving. With sophisticated—and not-so-sophisticated—technology, along with countless Web sites offering high-tech imitation documents, thousands of less-than-honest individuals are robbing unsuspecting businesses blind.
This is exactly what drives Pro Forms, Paso Robles, Calif., to stay one step ahead of the bad guys. With 12 patents for print security features, and three pending, Pro Forms remains a leader in security document production.
"Security printing has helped us to maintain a strong presence in the forms industry. It has allowed us to grow as a business and it's opened up new markets for us both nationally and internationally," said Nancy Phillips, marketing director.
Thanks to the foresight of its owner, the 22-year-old company has been producing security documents for the past 10 years. According to Phillips, the move was based on the prediction that the increasing use of computers and color printers would simplify fraud duplication for criminals.
"Our first invention was Pro-Ghost, a watermark technology that can't be reproduced by copiers," said Phillips. "That is what got the ball rolling." Today Pro Forms attends security conferences every year and is a licensee of Verify First Technologies, a sister company which holds the the company's security patents.
"Our most popular products are ThermoSafe and TouchSafe, which use thermochromic and regular offset inks to hide messages on products like gift certificates and checks," Phillips noted.
She explained that when someone attempts to copy a Thermo-Safe document on a copier, a "Void" message appears. TouchSafe, on the other hand, is a verification seal, resembling a thumb print that allows instant interactive verification of an original certificate. On an authentic document, the word "Valid" would appear from behind the thumb print when touched and briskly rubbed, or breathed upon.
One of Pro Forms latest technologies is called NaNOcopy. Still pending patent, this feature utilizes nanostructures to create hidden messages and encrypted algorithms. Other technologies include TamperSafe 3-D holograms and "D.N.A." molecular code protection called CodeSafe. CodeSafe is listed as the highest—Level 1—security feature offered by Pro Forms.
"We are always creating new ways to block illegal duplication," said Phillips. "But that doesn't protect end-users indefinitely." She warned that it is only a matter of time before criminals find a way around even the latest safeguard technology. "We can't stand still. Most security features have a two- to three-year life span," said Phillips. "For example, our Ghostmark paper is readily duplicated now. This is why we developed our own true watermark security paper."
Because of this, Phillips emphasized how important it is that end-users reevaluate their document security on a regular basis. And she is not just talking about securing checks with up-dated features. "Security concerns go far beyond checks," said Phillips. "We see people duplicating prescription pads, transcripts, bid request forms, proposals and bills of lading."
Phillips added that one of the factors driving security technologies is the Internet. With the fake documentation available from the specific Web sites, people can easily become "doctors" without every attending a University. Even more, current check processing software makes it very easy to create a fraudulent check off of a local company whose pay checks don't contain safety features.
When it comes to security documentation, a little cost goes a long way. Robert Campbell, manager, Stylecraft Printing, Canton, Mich., can't stress enough how important it is that companies take preventative measures before getting burned.
"We're not talking about a lot of money to put basic security features on documents," said Campbell. The idea, he explained, is to create a deterrent. "Some type of security feature is likely to turn away many people with criminal intentions," he said.
Campbell noted that security print costs can run the gamut from fairly low for basic features, to pretty high for specialized inks and super-security protection.
Some of Stylecraft's products include transcripts, death and gift certificates and government forms.
Unfortunately, said Campbell, businesses usually wait until after they've been hit to invest in security documents. "When a business does get hit, it winds up losing more money by having to go to the police station, go through a bunch of checks and file a report."
Phillips concurred, "We've found that if a company has been hit, then the owners are willing to invest in security features."
Instead of acting when it is too late, Phillips suggests that end-users, and even distributors, consider the fact that security documentation is cheap insurance. "Companies need security be-cause, in the situation of fraudulent checks, new laws don't just hold the bank responsible. The liability now falls back to the company issuing the check," said Phillips. "They are responsible for securing themselves."
According to Phillips, the amount of money a company is willing to spend on these products comes down to education. "Companies that know they are liable will allocate more funds to secure themselves. These customers tend to be larger companies that are extremely security conscious and, therefore, very proactive."
By Sharon R. Cole
- Places:
- Paso Robles
- United States