Check Fraud Prevention Methods Anyone Can Use

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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.

In order to secure your checks from being stolen make sure that they are locked up in a safe place with limited access. When access is limited to your checks this reduces the possibilities of check fraud either personally or professionally. Once your checks are exposed to criminals, even one they can use it over and over again by copying it using modern technology at their disposal.

The use of rubber signature stamps is also an easy target for criminals to write checks and use the stamp to sign the endorsers name exactly as it is. The banks or retailers cash the checks without knowing it is counterfeit. It also creates a liability for the individual as they cannot easily prove their rubber stamp was used without their knowledge.

Mailing checks also leaves you open to fraud. Stolen checks in the mail is a rising crime. Criminals follow mail carriers and seek out mailboxes in secluded areas in order to steal checks and other information. It is best to mail your checks inside the post office where the receptacle is monitored and secure. This prevents the possibility of your mail being stolen and possibly having checks end up in the hands of criminals. Also using a post office box is more secure than having your mail delivered to your home.

Always reconcile your checkbook at the end of the month to detect any fraudulent activity. This will be your first alert that something is wrong with your account or you may discover checks missing in sequence. Never write your checks out of sequence of numbers because it is easier to detect fraud if they are used in order.

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.

Ordering checks from a reliable source is also a good measure to take against check fraud. When you order them, there should be options for security checks that include water marks and other symbols that criminals cannot easily duplicate. This helps to safeguard your accounts.

These methods presented here can help to eliminate some of the fraud but is not all inclusive. There are many other methods to safeguard your financial documents and you can do research online to find organizations that list other things you can do. The primary concern is securing your checks and checkbook from criminals and making sure that your money is safe from being stolen.




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