Learn to Protect and Serve

Documents with security features add value and peace of mind.

Nobody likes to think about what would happen if the proverbial "rainy day" ever came to pass. But gambling that it won't isn't going to help when something does go wrong.

Aided by the proliferation of powerful printers, copiers and scanners, check and document fraud continues to grow. But despite the increasing sophistication of would-be crooks, how many businesses are really insured against the threat of deception?

"The question to ask is, who's going to look at my documents and who's going to steal them?" said Tom Hahn, vice president, Data Management, Butler, Wis. "After you've figured that out, all you have to do is take reasonable steps to protect your documents."

Perhaps the easiest and most cost-effective way to protect a company's checks and documents is to fortify them using overt security measures such as watermarks, warning bands, foil stamps, holograms, pantographs or numeric characters.

Overt measures such as these depend on identification with the naked eye at the point of exchange.

For a deeper level of security, covert systems, which include hidden information, micro taggants and ultraviolet and chemical reactions, can be built into checks and documents.

Covert security systems usually require the use of special lighting or devices and, in some cases, can even rely on advanced technical knowledge using laboratory or forensic equipment.

"I wouldn't sell a check without security features," said Buzz Underwood, chairman, CDC, Cooley Group, Syracuse, N.Y. "I usually use a combination of overt and covert features, even if the customer doesn't know what they are, because they're worthwhile."

Check Standards

For check writing, the American Bankers Association recommends a set of standards to en-sure that businesses take due diligence in protecting themselves from counterfeiting and fraud.

In the past, there have been court cases in which companies that failed to take reasonable steps to protect themselves against the threat of counterfeiting and fraud were held liable for lost money.

But no matter which level of security a company chooses, nothing's guaranteed. That's why it's a good idea to routinely reevaluate customers' security needs and offer them the opportunity to take advantage of the latest security features available. Security experts recommend that distributors review their clients' security systems once a year.

Of course, security isn't just for checks. It can also be used with gift certificates, prescription pads, birth certificates, ID badges and tickets, which covers every industry from retail and transportation to entertainment, health care and government. Recently, numerous high schools, colleges and universities have also begun using security products to ensure the authenticity of grade reports and transcripts.

Other security measures include Magnetic Ink Character Recognition (MICR)—an optical character recognition system.

Toner fusing—which locks toner into the paper to prevent scraping and tape pulls—and visible fibers randomly embedded into the paper on both sides to aid in counterfeit identification are also common security measures. Some paper manufacturers will even make custom rolls of fourdrinier watermarked paper. Nevertheless, where there's a will, there's a way. "If somebody wants to counterfeit something, they're going to," said Glenn Martin, president, Control Printing Group, Independence, Mo.

How Much Is Enough?

As for how much security is enough to prevent counterfeiting, Hahn said it's just a matter of how sophisticated the customer wants to get. However, some customers might not be aware of the value of security.

"It's just one of those situations where you go to somebody and tell them you could do a three- or four-color payroll check, and they say, 'Are you nuts? I just want a plain payroll check.' Then you go down the street to another customer who sees it as a marketing tool," said Hahn.

Still, unless distributors and their clients go to area banks and educate them about the security measures they've put in place, those measures won't do any good.

While some distributors might not be convinced of the need to offer security products to their customers, it's important to note that recent FBI reports revealed that billions of dollars are lost annually through counterfeiting and forgery.

Furthermore, in the event that a client's checks or documents are counterfeited, the distributor does not want to have to explain why security options were not offered.

"It's up to the distributor to show his or her customer what's out there," said Martin. "Many of these security features don't add much to the overall price tag, but they do add a lot of value and peace of mind."

By Allan Martin Kemler