Section 5: Security Issues
5 Security Issues
Printing negotiable documents from blank paper on desktop MICR laser printers makes security a top priority for any company embarking on a desktop check printing project.
Good security programs integrate hardware, software, your employees and your financial institution into a secure check production system. Recent changes relative to the responsibilities of banks and their customers have a bearing on the ultimate liability for fraudulent documents. Customers must have systems designed and documented to show “Ordinary Care and Good Faith Effort” is in place to avoid liability. In the past, financial institutions generally credited corporations when fraud was discovered. New regulations attempt to define who may have been negligent in the transaction and put the liability on that party or parties. Clearly, if a fraudulent occurrence can be traced to a corporation’s lack of security procedures, or the design of their negotiable documents, the regulations will protect the banks, or at best case the loss will be shared.
Check Stock Security Features
We have found the following check stock security features to be of merit:
Artificial Watermarks - White on white printing generally on the back reveals words or patterns when held at an angle. You should state on the front of the check that this feature is present. It cannot be copied.
Laid Lines - Evenly spaced background lines that make cut and paste alteration difficult.
Void Pantograph - Background printing of the word VOID or COPY which appears on photocopies. Some paper suppliers offer enhanced versions of pantographs which provide more protection from the latest in color copier technology.
Chemical Additives - If an ink eradicator (bleach, acetone, etc.) is applied to the document, the eradicator creates a permanent stain.
Numbered Check Stock - Sequential numbering printed in dye that penetrates to the reverse side of the check can be used to verify authenticity. This number may not relate to the check serial number. This also provides for inventory control of blank check stock.
NOTE: These quality issues serve as a general guide for check production. You should not consider these features as an all inclusive list. We recommend consulting with your local paper supplier for any additional comments or suggestions.
Secure MICR Printer User’s Guide July 2003
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