In today’s world, businesses face a number of challenges, but few are as daunting as combatting fraudulent checks. Technology has made it easier than ever before for criminals to produce or alter a check so that only an expert eye can detect it. This crime is no longer the exclusive domain of large check fraud rings. The home PC and desktop publishing has brought this technology within reach of the smallest petty criminal. Others choose to modify checks by using chemicals to remove all, or a portion, of the information and change it to benefit the criminal.

Often, these crimes begin with the theft of a blank, canceled or valid check. Occasionally, this is accomplished with the cooperation of an employee, but it can also be accomplished by someone rummaging through company garbage, stealing company mail, or by the theft of blank checks or financial documents stored in an unsecured area. Recent changes in the Uniform Commercial Code has made it clear that business share responsibility for preventing check fraud. For example, if the bank offers check stock with security features, the bank can claim negligence on the part of the company and is only partially liable for loss due to fraud.

There are many ways that a business can prevent check fraud. One of the most popular methods is the use of MICR-check printing software that prints checks from secure, blank stock. This eliminates the possibility of someone stealing blank checks. Most check printing software incorporates a number of security features such as restricting user access to certain functions unless authorized, dollar amount limits for specific or authorized uses, and requiring that an authorized employee log in and verify all checks before they are printed. MICR-check printing software and accounts payable automation has become one of the most popular methods of preventing fraud through internal security.

Another more common way to avoid dealing with check fraud is to carefully examine all checks that pass through a business or individuals hands. Bad checks may not be obvious but there are ways to tell them apart from a valid check. Bad or fraudulent checks usually lack perforations and in their check numbers may not change at all. The printed font is arguably different and often does not look professional. They are questionable when the name and the address are printed in different fonts whereas with a legitimate check, they are usually printed with the same font. If the MICR coding at the bottom is shiny then it is likely a fake check. MICR printing is not glossy at all, it’s rather dull in appearance.

Businesses can also limit the damage caused by fraudulent checks by placing maximum dollar limits on checking accounts and by establishing a separate account for large payments. Companies that request detailed reports from their bank for all large payments increase their likelihood of detecting a dishonest employee. It may not be possible to prevent all check fraud, but through the use of MIRC-check printing software, internal security and limiting the potential cost of fraud, an organization’s bottom line need not be affected by fraudulent checks.