How to Spot Check Fraud

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How to Spot Check Fraud

In order to detect check fraud you need to know what to look for. Conveniently, this information is listed (in most cases) in the check in either the warning border on the face of the check and/or on the back of the check in the security features box.

1. Perforations	Most professionally printed checks are produced with a perforation on one or more of the sides. Be suspicious of checks with clean edges or ones that looks as though its been hand cut.
2. MICR Line & MICR Ink	MICR stands for Magnetic Ink Character Recognition. It helps in routing your check correctly. Forgers often lack the ability to encode with magnetic ink and instead use regular toner, which appears shinny. Where as, magnetic ink will usually be dull. Regular toner can also smug if you moisten your finger and rub it.
3. Routing Numbers	The Routing Number is the 9 digit number to the left of your account number on the bottom of the check. The first two digits indicate which of the 12 Federal Reserve Districts in which the bank is located. Click here to view the Federal Reserve District Map which shows the different districts and their respective numbers.
4. Check Color or Discolor	Often forgers will purchase blank check stock or recreate from scratch. Color change between checks can range from minimal to drastic. Stains on check are sometimes the result of chemical alteration attempts.
5. Check Numbering	Check numbers keep track of your check stock. A missing number or a discrepancy in your sequence can indicate a stolen check. A repeating number or if number is missing altogether is a sign of a fraudulent check.
6. Font Difference	A difference in font between the payee name and address can indicate someone has changed the payee.
7. MICR Consecutive	The number on the left of the MICR line is the MICR Consecutive. This number should be the same as the check number in the upper right corner of the check.
8. Matching Address & ID	Make sure the address on the check is the same as the address on the check presenters ID.
9. Matching Acct & Signature	Does the signature match the title on the account. If not the check writer may not be authorized to sign on the account.
10. Missing Info	Be suspicious if any pertinent information is missing. ie customers address, check number, bank address or date