Counterfeit Checks

Finding ways to detect fraud in the modern age

The Impact of Check Fraud

How financial institutions protect themselves from counterfeit checks

Check stock verification software protects financial institutions against the fastest-growing source of fraudulent activity surrounding checks today: counterfeit checks. According to industry studies, “check fraud accounts for 47% of deposit account fraud losses.”²

Types of Counterfeits

Modern image-based check processing makes counterfeits harder to identify

Counterfeit checks can be easily created either by duplicating a check with color copiers or by using a personal computer, scanner, bookkeeping software, and printer, which are all readily available today. Modern software allows those producing fraudulent checks to change some of the check’s information, while keeping many valid check components.

Skilled counterfeits may even include the MICR line. As banks moved to the image-enabled check processing encouraged by the Check Clearing for the 21st Century Act, they are facing another challenge: many of the check’s paper-based security features are lost, which makes counterfeit check fraud significantly more potent.