Innovative Payment Solutions LLC

Check Fraud Prevention Tips

1. Establish a check acceptance policy detailing acceptable forms of ID, required information and dollar limits and no exceptions to the policy. Fraud artists are skilled at creating hassles or confusion that can leave you stuck with a bad check.
2. When accepting a check, make sure a name, address and phone number are printed on the check and the written and numeral amounts correspond.
3. Pay close attention to the "feel" of the check; most check paper has the same weight and texture.
4. Watch the check-writer sign the check and have the customer print the name below, if the signature is illegible.
5. Compare the signatures, photo and physical description of the ID with that of the check-writer.
6. Check the driver's license, which should be smooth all over with no ridges that indicate an alteration or modification. Verify that the date of the ID is still valid.
7. About 90% of all returned checks have low check numbers (100-500). While low check numbers indicate a recently opened account and a potentially more risky check, particularly for business checks that are dba ("doing business as") checks.
8. Very useful information on the check face is the account's opening date (month and year), usually indicated by 4 numbers to the side of the account holder's name and address.
9. Don't accept second-party or third-party checks because these are very risky.
10. The 4-digits following the magnetic ink character recognition (MICR) number at the bottom of the check should match the 4-digit number at the top right hand of the check.
11. All checks, except government checks, should have a perforation along one side of the check.