There are many ways in which criminals can perpetrate check fraud. Some fraud activity will happen before the check arrives at your place of work, some may happen after. To reduce the chances of internal fraud, it's important to secure the original physical check through its entire lifecycle:
External Fraud - Before You Accept the Check
If possible, have the customer sign the check in front of you. Then compare the signature to a signature on a picture ID.Get two forms of identification from the customer.If the printed ink on the check smudges, or if the paper feels thin or low quality, the check may be counterfeit.Limit the size of transaction for which you will accept checks.
Internal Fraud - After You Accept the Check
Conduct thorough background checks of any employee who will be handling checks.Ensure your software vendor offers duplicate check protection for at least 90 days, and preferably forever.Always process your checks as soon as you're able. Less handling means less chance of fraud.Secure the original checks after they pass through the scannerMake sure that your RDC scanner marks the checks in some way to show they have been scanned
The Office of the Comptroller of the Currency, a division of the US Treasury, has published this
advisory report about check fraud. It outlines different kinds of check fraud, gives examples of how criminals execute their plans, and offers advice on how to limit your risk of falling victim to check fraud.
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