Types of Check Fraud

Business Check Printing: Types of Check Fraud

Check fraud is one of the oldest forms of fraud and it shows no signs of letting up.

Checks are still commonly used amongst businesses for payroll or to make payments to suppliers.

Fox Business reported that “About 87 percent of financial professionals said their companies experienced check fraud.” In order to project yourself and your business from check fraud, it is important to know the ways in which criminals are tampering with your checks.

One of the most common forms of check fraud is “Check Washing”.

Check Washing is done using a variety of chemicals to alter a check that has already been printed. Most of these chemicals are commonly used household cleaning products such as acetone, bleach, and nail polish remover. The availability of these products make this form of fraud very accessible.

Criminals will often acquire checks by stealing mail. They then proceed to remove the information that has been written or printed on the checks. Fraudsters will try or change the recipient of the check as well as the amount it is worth. When a check is washed, the information is erased and then it is replaced with information that will allow criminals to have funds transferred to their accounts.

Fraudsters can accomplish a similar goal by using scanners and copiers to create new checks with altered information. This process is not as inexpensive or low-tech as check washing. Copying checks with the addition of newer computer programs can also recreate checks with altered information, amounts, and signatures.

In recent years, a lot of light has been shed on this form of criminal activity. Check manufacturers have combated with check washing and copying-specific preventative measures. There are also simple steps you can take. Visit our post Business Check Printing: Tips to avoid Check Fraud to learn more.

References:

http://www.foxbusiness.com/personal-finance/2013/08/09/old-school-check-fraud-makes-comeback/