Movie Checks: 3 Types Of Fraud Prevented

There is no argument that check fraud is one of the biggest problems facing the banking industry today, which is why the security features that go into movie checks is extremely important. It is no secret that bank checks from third party check printing services tend to carry more security features than those issued by conventional banking institutions. This is because of the level of personalization and customization involved in the printing aside from the proprietary security technology that third party check printing services incorporate into the design.

The availability of bank checks that go through various levels of personalization and customization further emphasizes the need to strengthen the security features currently available. Certainly, placing the picture of the checking account holder can be one potential deterrent to fraud. The incorporation of more factors of deterrent, the more fraud can be prevented. It is important to point out that rarely will movie checks be available in conventional banking institutions. Some types of fraud that can be prevented by this type of bank check can include:

1. Forgery
In a business setting, forgery happens when an employee or a member of the organization, who is not authorized to issue a bank check, does so under the name of the business. For personal checking account holders, forgery occurs when a bank check is issued in their name by another person. Usually, the use of forgery will also involve bogus personal identification, as well as a copied signature.

With the advances in modern technology, forgery can normally be done using commercially available desktop publishing software applications. These software applications provide the capability to copy and create duplicate bank checks that can be used by criminals for whatever purpose they desire, including identity theft among others. Incidentally, identity theft, which is considered forgery, is one of the biggest problems today, especially of the banking industry.

The good thing with security features of movie checks is that third party check printing services take into account the various techniques that bank checks are being forged. For example, some use photocopying or scanning to reproduce the bank checks, which will allow criminals to forge the document. This type of fraud is commonly prevented by the inclusion of a special die in the bank checks that will produce blots once it has been subjected to photocopying or scanning.

2. Alteration and counterfeiting
In terms of bank checks, counterfeiting can be interpreted as the fabrication of the bank check in whole. Normally, desktop publishing equipment is involved in the activity such as a personal computer, software application, scanner, and high quality laser printer. The availability of advanced color photocopying machines can also do the trick. This therefore poses increased threat to checking account holder, especially when you consider that majority of these equipment are readily available to almost anyone.

Alteration on the other hand describes a process where chemicals and solvents such as bleach, acetone, or brake fluid can be used. These products are used to modify or remove handwriting and other relevant information found on the bank check. When done on particular areas of the bank check, the process is referred to as spot alteration. Attempting to erase information from the totality of the bank check is normally called washing.

Checking account holders do not have to worry as much when it comes to these methods of alteration and counterfeiting, especially if they are using movie checks. This is because majority of third party check printing services use specialized paper for the bank checks so that they will react when treated with chemicals and solvents. This practice will usually deter fraud and prevent criminals from instituting their malicious intents.

Moreover, when using this type of bank checks that have extreme personalization and customization, there are specific security features that come into play to provide explicit protection for certain areas like the payee, amount, and signature of the checking account holder. In some instances, even the area on the bank check for the date is protected by specific security features to prevent postdated checks from being manipulated by criminals.

3. Paperhanging
This type of fraud normally occurs when checking account holders purposely write bank checks using closed accounts or reordering bank checks with the same closed account. It does not matter if the checking account being used in the fraud is that of the checking account holder or that of another person, who may be unaware of the unauthorized use of the checking account in this manner.

It is important to point out that majority of the occurrences of this type of fraud happens with checking account holders that use bank checks issued by conventional banking facilities. With third party check printing services, this is commonly prevented using a number of security mechanisms to ensure that the checking account being used as well as the person placing the order is all real.

When checking account holders order from third party check printing services online, their identity is checked and double checked, along with other relevant information that has been provided. The ordered bank checks are also not allowed to be delivered to another address except that which is printed on the paper. This is part of the security features that is intended to prevent this type of fraud from being perpetrated.

Annual losses to various types of fraud have been estimated to reach billions of dollars yearly, and are projected to grow with criminals becoming more innovative in their approach. The good news with movie checks is that third party check printers are becoming equally innovative, which means they can be instrumental for these types of fraud to be prevented.