Here is a quick summary on how to indentify fake checks and how to
exercise "ordinary care and diligence". Counterfeit checks fall in one of
three general categories: fake checks, altered checks or forged checks
(collectively "CAF checks").
For the first type, a fake check is an entirely fraudulent check, but is based on
genuine information, usually taken from a victim of identity theft. Altered checks
are genuine checks with a true signature, but with a forged adjustment, typically
the amount. Lastly, forged checks are produced by either stolen blank checks
or "washed" checks with a false signature.
Understanding the patterns that most forgers follow can help prevent checks
from ever passing or help discover CAF checks more rapidly. Fake check
passers are the hardest to catch as they often use a counterfeit identification
card in order to cash a check quickly. Here, the merchant’s main countermeasure
is to understand how to spot a fake ID, be able to verify ID information and be
on the lookout for behavioral clues such as nervousness and an imposed time
pressure on the person which the check was presented.
A signature comparison usually helps if possible. Measuring the length of the
signature is the one of the most important comparison points as a person’s
signature varies over time and under different conditions, but the length is usually
consistent. In addition, forged or "new" signatures often have uneven pressure
where the criminal may pause, mid-signature. Spacing between letters may be
slightly larger than normal, there may be ink blots from holding the pen on the
paper a longer amount of time and the starting stroke of the next letter will be
heavier.
For behavioral clues, CAF check writers often pass a few small regular checks
with a specific employee in order to build rapport. Then, the criminal will bring in
a much larger check after the clerk feels comfortable with the individual because
all other checks have passed without incident. However, it is important to note
that even when an individual mirrors this behavior, it is possible that they are
not the criminal, but rather the victim, as these presenters of CAF checks either
unknowingly passed the check or an unwitting accomplice asked to cash the
check.
One of the most common types of CAF checks is the forged "washed" check.
Here, education can play an immense part in fraud control because if employees
know how these checks are created and how to identify them, they can be
stopped before they are ever cashed. Washed checks typically use checks that
are stolen from the mail or other theft. The forger traces the original signature
in pencil and then washes the pen ink off the checks in a chemical solution that
is some combination of brake fluid, rubbing alcohol, acetone and hydrogen peroxide. The graphite pencil trace of the signature remains on the check
through the chemical wash and after the check is dried, the signature is retraced
in pen and the rest of the now blank check is completed. The physical features
that most easily identify a washed check are residual chemical odors, residual or
smudged ink stains and unusual texture from chemical absorption into the check
during the drying process and eraser marks around the signature from erasing
the graphite trace. One recommendation you can give your clients is to write
checks with gel pens which are harder to wash out because of the composition of
the ink.
Catching good counterfeit checks is difficult and this is just meant to provide a
high level overview that will hopefully serve to provide a first line of defense. |
