Xerox 6180N Generic MICR Fundamentals Guide  - Page 144

Security Stolen checks Blank checks may be removed from the premises by employees, delivery personnel, service technicians, customers, emergency personnel, or burglars. Missing checks may not be noticed immediately. In some cases, checks are intentionally thrown away without secure disposition. Stolen checks that are successfully passed are the responsibility of the account holder, and the losses are usually not recovered. Guard against stolen checks by doing the following: • Secure the check supply. Make sure that all blank checks are stored in a secure place. Limit access to checks to a small number of authorized employees. • Secure the environment. Limit check writing to an area that unauthorized individuals cannot access, or schedule check writing when no one else is in the area. • Examine checks thoroughly. If an unauthorized entry occurs, such as during a burglary, fire, or medical emergency, make sure that no unissued checks are missing. • Enroll in a positive pay program. This program is effective against stolen checks because unlisted serial numbers are caught by the bank and are not paid. • Dispose of outdated check stock in a secure manner, preferably by burning or shredding. Counterfeits With high quality duplicating and printing equipment readily available, individuals with no training or experience can create presentations and reports that have a very professional appearance. Office copiers, color copiers, and computercontrolled laser printers are used in check counterfeiting. Like stolen checks, counterfeits that pass through the payment system are often the responsibility of the account holder, and not the bank. This is especially true when the check can be easily reproduced, or account reconciliation procedures do not ensure prompt discovery of the counterfeit. Consider the following when planning for a counterfeit protection program: 8-16 Generic MICR Fundamentals Guide