Source Technologies, LLC ST9612 Secure MICR Printer User’s Guide
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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.
Combating fraud is a moving target. As soon as a new weapon is developed, malicious
forces are at work to devise workarounds to it. Good security programs integrate
hardware, software, your employees, processes, and your financial institution into a
secure check production system. The ultimate liability for fraudulent documents rests
with the banks and their customers, and there can be many vulnerable points throughout
the overall system. 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. Today,
regulations attempt to define who may have been negligent in the transaction and put
the liability on that party or parties. 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.
The following internal and external security measures will help minimize your risk of
check fraud.
1. Stay abreast of current check fraud methods and the latest in fraud detection.
Many financial institutions offer seminars to educate corporate clients.
2. Financial institutions should train tellers to look at the check, not the person
presenting the check. The check, not the person, is the item that must be
verified.
3. Incorporate security features into your base check stock and utilize printed
security features that address both alteration and counterfeiting of original
items. 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. True watermarks are valuable but more
costly.
Laid Lines - Background lines that make cut and paste alteration difficult.
These are normally on the back of the check.
Fuse Enhancing Additive - Coatings or additives to the paper that improve
the bonding of toner to the paper. This helps prevent altering of critical data
such as the amount, or payee name.
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.