Counterfeit Checks

A "counterfeit check" is a check that is created by the party who is conducting the fraudulent transaction. Unlike a forged or altered check, a counterfeit check was not issued to a customer of the financial institution on which it is drawn. The color printer technology of today used in conjunction with computer technology can create a document that appears to be a real check. Programs are available at minimal costs that allow a party to make their own checks. Bank check printer paper is available along with magnetic ink cartridges to print the MICR line. Of course the products were developed for and are intended to be used by businesses and individuals to produce legitimate items but that is not always the case. A counterfeit check may even bear the logo of the bank customer on whose account the check is drawn. In some instances a counterfeit check will contain all accurate information regarding the name and address of the customer, the name and address of the bank, the customer's account number, the bank routing number, an appropriate check number and be printed on appropriate paper. However, more often than not, some of the data on the face of the counterfeit item or the paper stock is not correct. For that reason all non-standard checks presented for payment or to be cash should be carefully examined. A call to the customer to verify that a check is legitimate may avoid a loss.

First published on BankersOnline.com 7/9/01