Source Technologies ST9530 User Manual

Page 17

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Secure MICR Printer User’s Guide

September 2005

Security Note

Check fraud in the United States is a continuing problem. We have attempted to identify
security features that can be incorporated into the base check stock. However, these may
not prove 100% fraud preventative. Over time, technology will continue to develop new and
improved measures to address check fraud.

The following internal and external security measures will help minimize your risk of check
fraud.

1. 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.

2. Firms accepting checks should be aware of damaged MICR lines. Intentionally

damaging the MICR line can increase the time necessary to process an item,
giving the forger enough time to leave town. Also be sensitive to discoloration,
this could be an indication of alteration.

3. Incorporate security features into your base check stock and utilize printed

security features that address both alteration and counterfeiting of original items.
A short list of these features would be:

• Warning Bands, or other methods that alert recipients to visual security

features;

• Artificial or genuine watermarks in the base paper;

• Chemical additives in the base paper that react to chemical alteration

attempts;

• Void Pantographs that address attempts to copy original items;

• Unique security fonts that deter attempts to alter payee or amount

information.

4. When generating final negotiable items,

• The document always includes the amount value in words;

• The document should not include information that limits the value range,

i.e. “Not valid over $500.” This only guides the fraudulent attempt. Use
your application software to detect out of range items;

• All levels of hardware and software password protection should be

utilized.

5. Safeguard check stock paper, and limit access only to necessary employees.

6. Understand and approve the security procedures of your check stock suppliers to

safeguard stock in their custody.

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