7.Use “Positive Pay” check services from your financial institution that match check number and dollar amounts to known information. Financial institutions should encourage full participation of corporate clients.
8.Move methods of fraud detection to the item’s point of entry into the clearing system. For example, low cost readers can detect low magnetic strength in the MICR line which is a good indication of attempts to copy an original.
9.Always verify the home address and place of employment of new account applicants. Use public sources such as phone books to verify phone numbers. Ask new account applicants why they are opening an account with your institution. Be suspect of unusual answers or delays in responding.
10.Stay abreast of current check fraud methods and the latest in fraud detection. Offer seminars to educate corporate clients.
11.Review and document your internal negotiable document printing procedures. Investigate employee backgrounds before assigning security authority. Split responsibilities, for example, an accounts payable production/security officer should not also balance the account.
Secure MICR Printer User’s Guide | 14 | © Source Technologies |
September 2005 | All Rights Reserved |
