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In the two-year period between 1991 and 1993, check fraud cases more than doubled from the previous two years to 1.3 million. Known monetary losses approached a billion dollars, and industry experts think it’s much higher yet.
Technology is blamed for the rapid increase in this type of crime. With a small investment of about $5,000, a crook can go into business. He needs only a relatively high-tech computer, a laser printer and a scanner to get him started printing high-quality checks.
Chemicals are available, for just a few dollars, that can “wash” a check – remove the information imprinted by the check writer – so that new information matching a false identification can be written in. And for those astute in chemistry, other substances are available that will cause the check to self-destruct — sort of like Mission Impossible — 24 hours after they are applied.
These organized fraud rings include a variety of players, each adept at a particular aspect of fraud. Some handle the acquisition of information, obtaining the personal data necessary to manufacturer the fake identification documentation. Others may be computer literate enough to do the technical work of manufacturing the duplicate checks. Then there are the “runners,” those employed to turn the counterfeit checks into real cash.
Experts suggest that industry should fight back with front-line education. Tellers should receive fraud-training to enable them to spot suspicious situations: such as ink that smears, checks with no perforated edges, ink that reflects light (magnetic ink does not) or matching district codes along the bottom of the check. It doesn’t require an Einstein on the front line to spot these signs – just a regular teller who’s received a small amount of special fraud training and education.
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