Every year, people lose hundreds of millions to check fraud in America. Since then, check printing companies have started incorporating security features in checks. These security features help banks spot counterfeit and forged checks. They also help banks’ original checks that have been tampered with.
These days, online transacting platforms are the preferred banking platforms. But, some small businesses and corporations still receive payment via checks. Others use checks to avoid bank charges and make payments without going to the bank to withdraw money.
In this article, we will discuss ten security features banks can look for to prevent check fraud.
Warning Bands and Warning Clause
Imagine having multiple anti-fraud features on a check, and no one knows about it or remembers to check it. Of what purpose is it? Warning bands are important for this reason. The warning band instructs the person receiving the check at the bank to confirm if the listed security features are present on the document. Check receivers at the bank can find the warning band at the top of the check or document. It lists all the security features the makers have designed on the check.
The warning clause is a standard security feature in the United States. It is a common feature on many banknotes like checks. This distinct feature involves printing the United States Patent numbers on the left side of the check. Producers use thermochromic technology to print the patent numbers. The warning clause clearly states that if the U.S. Patent numbers are not on the check, it is fraudulent. The warning notifies check holders that the ink will wipe off if you rub or blow it, so they don’t erase it accidentally.
Thermochromic Ink
An innovative security feature uses heat-sensitive inks to print on bank high-security checks. Thermochromic inks wipe off when tampered with. It also changes color when it comes in contact with temperatures above 85 degrees Fahrenheit. By merely looking at the check, the receiver can tell if the check is authentic or has been tampered with.
Moreover, thermochromic ink technology protects a check from being photocopied or scanned. Because the ink is heat sensitive, it is impossible to reprint the bank check and retain the color.
Watermarked Papers
One of the most effective means of securing checks is using watermarked papers. Using watermarks certification seals is a printing practice approved by the United States Environmental Protection Agency. All checks secured by watermarks also have a fingerprint at the back. They come with detailed warning bands or clauses on both sides of the check. There are two types of watermarks, namely, true (fourdrinier) and artificial watermarks.
True Watermarks
A special roller produces a true watermark (Fourdrinier) during check paper production. The watermark becomes visible when you hold it up to the light. It is not possible to reprint or reproduce it with the watermarks. If the check brought to the bank is a photocopy, the bank will not deposit it.
Artificial Watermarks
Creating artificial watermarks involves
printing words, logos, or images on the back of a check. The inks for artificial watermarks are transparent white inks or coin-reactive transparent white inks. It becomes visible when the back of the document is bent slightly to face the light.
Prismatic Printing Technology
Prismatic printing is a security printing technique. It uses pantograph designs to create a blend of unique colors by combining multiple colors on the same printing unit.. If it is scanned or photocopied, it will not look the same.
The photograph design mostly appears in the amount and signature area. The purpose of security printing is to safeguard account holders from scams and frauds. It is easier to spot forged or counterfeit checks and other bank documents.
Microprinting Technology
Microprinting technology involves using micro-printed words on signature lines or borders. If there is a microprint on a line in the check, there will be “MP” at the end of the line. This print shows as a line to the naked eye. It is only visible when magnified. If such a document is photocopied or scanned, the microprint will not be visible when magnified.
Fluorescent and Visible Fibers
Another innovative security feature is the inclusion of ultraviolet or fluorescent fibers in the materials used for printing checks. This security printing technology sprinkles single or multi-colored ultraviolet fibers along the surface of the check. When the receiver places the check under black light or ultraviolet light, the fluorescent fibers will glow. If they glow, it means that the check is authentic and legitimate.
In contrast, visible fibers do not require special equipment to see them. Visible fibers are placed randomly on both sides of the check. They appear in different colors and sizes. They also have a different feel to the touch.
Chemical Reactive Paper
Some printing companies use reactive chemical paper when printing checks. These papers react to common solvents like bleach, alcohol(ethanol), and oxidizers. Sometimes fraudsters try to use these solvents to wipe ink on a check. If this happens, the wiped area will reveal a blue or brown mark. Chemical reactive papers prevent the check from washing, and illegal attempts to remove details from the check surface. It gives a
visual indication that the check has been tampered with.
Toner Grip Coating
Manufactures layer toner fast coating on both sides of the check to enable stronger toner adhesion. This method prevents the laser-printed toner from being removed or scraped off. Previously, the toner coating on the check surface formed an outer layer on top of the fiber. While some stuck to the fiber, it still made it easy for scammers to scrape off the toner. Now, the fiber absorbs the toner ink, making it a part of the fiber. Any attempt to tamper with the surface becomes visible.
Void Pantograph
The void security feature is also known as “hidden word” technology. This security printing technology makes it challenging for scammers to forge checks on color copiers or scanners. If they attempt to reprint a check with a void photograph, the word “VOID” will appear on the forged copy.
Bleed Through Numbering
These are unique serial identification numbers. The ink used in printing the numbers contains a special dye that penetrates the paper fibers. It allows the ink to bleed through the paper fibers and appears on the back of the paper. The serial number shows on the front and the back of the paper. This feature prevents fraudsters from replacing the original number with theirs.
Bleed-through numbers use two different inks; black and red. The numbers are black on the front of the check enclosed in red lines. But, on the back, the numbers are completely red. When the check is copied or reprinted, it only highlights the color on the paper surface. It does not show both colors.
Security Measures to Prevent Check Fraud
The security features discussed above are by no means exhaustive. Financial institutions are responsible for the accounts managed in their banks. They must be vigilant and take necessary measures to protect customers’ funds. However, they cannot look for features they don’t know exist. Legitimate printing companies should always place detailed warning clauses on their checks. The warning clause will tell the receiver what security features are on the check.
