With 75% of all B2B payments made by check, the risk of check fraud should be a concern for all B2B organizations accepting and sending payments. Having a secure print solution that is engineered distinctly for its security features will minimize check fraud in your business.
The 5 Risks of Check Fraud Defined
Since checks are the payment type that is most vulnerable to fraud attacks, it is critical for small businesses and corporations alike to understand the various types of check fraud. Using pre-printed check stock, businesses are exposed to the following types of fraudulent activity:
- Check Stock Pilfering
- Forged Signatures
- Altered Checks
- Counterfeit Checks
- Check Duplication
Using a secure MICR printing solution will allow you to print secure, blank checks on-demand and protect your business against check fraud.
How Secure Print Solutions Reduces Risk of Check Fraud
By automating the issuance of paychecks and other checks, businesses often allow convenience to overshadow the risk of check fraud. Since not all check printing software is equal, the above risks we mentioned are not always protected against.
"It's been my experience that the bank is not going to pay on a loss unless you can prove the bank was negligent in handling that check,” says Frank Abagnale, an industry expert on check fraud, secure documents and forgery. “If the bank can prove that you were negligent in handling that check, you're going to be left with that liability. So, it is a smart business person who tries to make sure that everything they do with their check -- using a secure check, the way they issue the check, the type of program they use -- is everything they need to do to remove any possibility of liability being shifted back to them."
Printer features that reduce the Risk of Check Fraud
Using blank check stock versus pre-printed checks is the most fundamental and cost-saving way to reduce your company’s risk of check fraud. Here are just some of the features that can reduce your risk and vulnerability to check fraud:
- Set Copy Count to One – Numerous copies of one MICR check is disallowed with a PCL setting
- Microprint Font – MICR secure print solution includes embedded micro text and numbers not obvious to the naked eye to prevent fraud.
- Password Protection – Only authorized users with security credentials in the MICR software can print checks and access stored signatures.
- Complete Audit Trail – Supports comprehensive written records tracking check printing activity through user-defined settings.
Abolish Check Fraud with Source Technologies
Through password protection, a front panel security lock, tray locking, DES encryption/decryption, and other secure print solutions and MICR features, we provide the highest level of security available for both small businesses and corporations. For more information on how to reduce your business’ risk of check fraud contact Source Technologies!
Editor’s Note: Updated on June 1, 2020. Originally published on November 16, 2016.