jeudi 12 janvier 2017

Learn About Check Fraud Prevention And Safeguard Your Financial Accounts

By Kevin Phillips


Check fraud is perhaps one of the biggest problems for consumers and businesses alike. The estimated total amount that check fraud costs is into the billions of dollars a year. Many consumers and businesses lack certain safeguards for check fraud prevention but these tips may help to combat this problem in the future.

One such security measure that individuals and businesses can put into place is by keeping their financial documents locked in a secure area and limiting access to one or two other people. By limiting access to checks, a person or business can reduce fraud and prevent checks from being misused. With modern technology such as computer printers and color copiers it is easy for criminals to duplicate checks that are not easily spotted as being counterfeit. This creates a liability to a business or person if money is stolen from their accounts.

When people use rubber signature stamps this also opens them up for check fraud if their stamp is stolen or used to endorse stolen checks. This further gives criminals access to being able to cash your checks without your knowledge and the banks usually don't question this endorsement method. Once the check is cashed and approved, it may be more difficult to prove fraudulent activity with a rubber stamp signature.

If you must mail a check do so from a secure location. The post office internal mail system is the best method to use. Take your mail into the post office to be mailed rather than use a street side mailbox. Criminals often watch mail carriers and other people mailing from a particular location and they can retrieve checks from the mailbox easier than if it was mailed inside the post office.

Each month you should reconcile your account to prevent possible problems with stolen checks. Reconciling will be your first alert to any unauthorized activity on your account. Checks should always be used in numerical sequence so fraud can be detected more easily. You should never use checks out of their numerical sequence.

If you are a retailer and cash checks for the public, always keep an eye out for stolen or suspicious checks being passed. Some things to look for are discrepancies in the information contained in the financial document such as mismatching numbers, and discoloration of the paper. The MICR numbers should also match the institution and check numbers at the top. Also MICR numbers at the bottom of the instrument are usually dull in color because they are magnetic, fraudulent checks numbers are often shiny and it is hard for criminals to match MICR numbers gloss exactly.

If you order your checks from a reputable source, ensure that you have certain security features in place to prevent fraud and counterfeiting. One such security feature is the watermark which is not easily duplicated and can help to prevent crimes against your account. Other security features include perforation marks and special paper that prevents checks from being washed and reused.

Using these suggestions will help in preventing you from becoming a victim of financial theft. Your financial documents are very important and should always be secure and guarded. If you want to know more information about safeguarding your checks, there is a plethora of information online that can help.




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