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Check Franking as a Plausible Risk Mitigation Process

Answered by: 
Paul A. Carrubba
Dan M. Fisher

Question: 
In mitigating the risk of an item being presented electronically, and as an original item, is check franking a plausible risk mitigation process? Such as having the scanner print on the back of the check: VOID THIS ITEM HAS BEEN SUBMITTED ELECTRONICALLY.
Answer: 

Franking or stamping the face of the original check should alert any bank teller or other bank that the original check has been scanned and an image was or may have been created that was deposited to the account. I would not recommend that a financial institution use the word "VOID" on the original check. I would suggest other language such as "Scanned" , "Electronically Scanned" or "Processed" to indicate that an image was created. The bank must ensure that the franking or stamp does not obscure any of the required information on the face of the check.

Archive of Risk Management Questions

First published on BankersOnline.com 12/08/08

First published on 12/08/2008

Filed under: 
Operations
Security
Filed under security as: 
Management

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