How Counterfeit Checks are Made
Fraudsters may:
- Use desktop publishing or check-printing software to design realistic checks.
- Steal legitimate account and routing numbers from real organizations.
- Replicate logos, fonts, and watermarks to make the check appear authentic.
- Print checks on high-quality paper that resembles genuine check stock.
These details can make counterfeit checks difficult to identify, especially during routine processing.
Why Counterfeit Checks are a Risk
Because counterfeit checks don’t originate from actual check stock, they are particularly dangerous since they represent payments that were never authorized.
In treasury, counterfeit checks can create direct financial loss, operational headaches, and reputational damage if vendors, employees, or constituents are affected.
Preventing Counterfeit Check Fraud
Organizations can protect themselves by:
- Using positive pay services with their banks to verify issued checks.
- Reconciling accounts frequently to detect suspicious transactions.
- Limiting publicly available account information to reduce exposure.
- Transitioning to secure electronic payment methods to minimize paper check usage.
What's important here?
Counterfeit checks are fake checks created to look real, often using stolen account information and printing technology. They pose a serious risk to organizations because they bypass traditional safeguards.
Proactive monitoring, secure banking tools, and a shift toward electronic payments are key defenses against this type of fraud.
