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Is It A Counterfeit?
THE PROBLEM IS INCREASING - CAN YOU SPOT THE CLUES?
All you have to do to know how to create fraudulent checks these days is to turn on the nightly news, or pick up a current news magazine or newspaper. As a result of this training information, and the ease and availability of methods and material, we are experiencing more check fraud than ever before in the history of banking.
How do we protect ourselves against this onslaught of fraudulent activity?
First and foremost - we try to know our customers. It is our primary and most useful defense, and one that our training is emphasizing more and more. But we also know it's getting harder to do, especially in an institution that has numerous branches, and the capability of foreign ATM deposits.
Second, we need to know how the alterations and counterfeiting are done, so we know how to recognize them. Almost all alterations or counterfeiting methods leave some kind of clue. We used to joke about having a magnifying glass at every teller's station. In today's banking environment, a good, high-strength magnifying glass is a good investment.
Here are some of the most common clues-and the ways to discover them.
Erasures: depending upon the type of ink and eraser used, the paper will either be "furred", or the ink may not have been removed completely…usually used on ball-point pen ink only.
Bleach: used to fade the ink color, but also bleaches the paper and creates a faded "blister" on the back.
Opaque liquid cover-up: painted over original information, so that new information may be added. This liquid is available in a variety of colors that can be matched with the document. The texture of the added information will appear to be different, and the covered spot is usually visible if held up to the light. This type of alteration is generally used to alter typed information or to alter signatures.
Cellophane taped-material: invisible tape, sealed so tightly as to be unnoticeable, can restore a torn or mutilated check. Contact the maker.
Self-adhesive paper products: placed over original writing, new information added. Hold it up to the light to "read through" to the original.
Correction tape: used on a typed check, to type over what has been originally typed, and then re-typed with other information. No matter how carefully the check is replaced in the typewriter, under a good magnifying glass, you can discover signs of typewriter correction tape use.
Red ballpoint pen: will not microfiche. If a check is written in red ink, the microfiche will indicate a blank check. Ditto for a very light blue pen. The use of red and light blue pens is a favorite trick of criminals involved with "statement cycle" crimes such as kiting or embezzlement.
Overwriting: particularly with a felt tip pen. Get out that magnifier again-you'll be able to read the original in the middle of the overwritten lines.
Addition: particularly to the payee line. The added information will be out of line with the original, or may even be in a different font or print style. Often the "memo" line will also be filled out-a favorite trick of criminals attempting to "legitimize" the appearance of the document.
Printing: using a computer aided alteration to make a starter check appear to be printed by a check manufacturer. Also used to change information on legitimate checks such as cashier's check or teller's checks.
The Secret Service has maintained for years that the financial industry's best defense against counterfeit currency is the teller's hands and fingers that can tell a counterfeit by its "feel". The same rule goes for discovering counterfeit checks.
Take a brand new piece of currency and lay it on a hard surface. Take your fingernail and strum it on the clothing of the portrait. Feel the "bzzzzz"? That's because there are several layers of ink on the top of the paper. You can feel it with the tip of your index finger on the words "This note is legal tender…"
If a laser printer is used to print a check, that same feel will be there. That's because the toner sits on the top of the paper, creating that toner ridge. A color copy, though not glossy if powder toner was used, will have the same feel.
A real check, printed by one of our check printers, is done by offset printing. Ink soaks into the paper, leaving no toner ridge. The check information, including the MICR line, is perfectly smooth.
A cashier's check, or teller's check, will also be smooth, with no toner ridge on the information of the drawee bank or on the MICR line. If you feel the "bzzzzz" on that information, you need to check very closely.
One last place to look-the back of the check. If a check has been cut by an imprinting machine, there will be a series of dots, creating a uniform indentation of the surface of the paper. There will be uniform "blisters" on the reverse. See if they match. Information created by an imprinting machine may be altered on the document's face by using a fine-line pen. This alteration is accomplished by carefully drawing lines or dots, simulating the pattern created by the imprinting machine. The reverse of the document will be blistered in the altered area. This technique is known as "jail-house art".
The magnetic routing number of the bottom of the check can be demagnetized by rubbing it with a coin, causing a possible mis-routing of the item, and a delay in presentation. Usually this is revealed by a gray or shiny film across the area.
Due to the increased counterfeit check activity in the financial industry, Dan Brooker, President of National Fraud Investigation Center, Inc. (NFIC) and one of the advisors to the BANKERS' HOTLINE, is working in conjunction with the FBI and the Secret Service in formulating a counterfeit check database. Financial institutions and law enforcement agencies are encouraged to participate in order to assist in combatting this fraud.
We have included with this HOTLINE a "Counterfeit Check Submission Form". Agencies or institutions can submit this form with the best possible copy of the counterfeit check to NFIC-the address is on the top of the form. Any suspect photographs may also be sent for inclusion within the database. Once in the database, this information will be available to all investigation agencies. As information is collected, patterns or trends may be established to assist in pro-active measures or field investigations.
Dan also has a request. Many Security Officers have formed 'Counterfeit Check Task Force' organizations around the country. Please make yourselves known to NFIC and through them to the FBI and Secret Service so that information can be disseminated and distributed more quickly to you. He can be reached at (800) 999-5658.
Remember, almost every counterfeit has a clue. It's up to you to find it.
Notice that the signature line is much too low on this check, providing the clue that it is a counterfeit item.
Copyright © 1996 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 6, No. 4, 1/96
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