Counterfeit checks often look just like the real deal, but they usually miss security features. The Department of Banking and Finance highlights some common physical traits of counterfeit checks. Here are five of the more frequent indicators:
1. Paper quality: Counterfeit checks often have lower-quality paper and feel slippery. Genuine checks are printed on high-quality, durable paper that doesn’t tear easily and often includes embedded security features like microprinting and special fibers. Also, watch for:
- Colors that smear when rubbed with a moist finger, suggesting the check was made on a color printer or copier.
- Edges that are not perforated might indicate fraudulent personal checks.
2. Watermarks: These are critical security features that are hard to fake. Authentic checks have watermarks that are visible when held up to the light. Counterfeit checks often lack these or have poor imitations.
3. Improper signature: Gone are the days of manually reviewing each check signature, but checks are often forged or signed by an unauthorized party. Automated Optical Character Recognition (OCR) can effortlessly detect fraudulent signatures and is an added layer of protection.
4. Magnetic ink character recognition (MICR) number: MICR is used for automated processing, and any inconsistency is a red flag. Missing or mismatched MICR numbers, bank routing numbers, or check numbers likely indicate a counterfeit check.
5. Alterations: Alterations are a common tactic in check fraud. Any signs of tampering, like altered, eradicated, or erased information, suggest the check might be counterfeit.
When a check is presented for payment, a visual inspection can often reveal suspicious checks before your financial institution incurs a loss. The key is to spot these discrepancies using a combination of technology and staff training.
