With SENTRY: UltraCheck, detection of chemically altered checks
is automated, making it a much more efficient and practical preventative measure.
For cancelled checks it could be handwritten check endorsements, multiple endorsements, unsigned checks, or altered checks
, Hall said.
It soon found that other stolen and altered checks
, as well as counterfeit checks, were being negotiated against the company's account.
Until now, Positive Pay has been the only weapon the industry has had to combat counterfeit and altered checks
, but it does not identify alteration of payee names, and it has barely penetrated 10% of the banks' customer base," said Thomas G.
CheckStock, one of Parascript's newest fraud detection products, scrutinizes the placement of items on checks, allowing banks to identify even the slightest variations, minimizing acceptance of altered checks
The best defense against altered checks
According to the ABA, forgeries, counterfeits and altered checks
together, account for nearly forty percent of all check frauds reported in the U.
If there are any irregularities with the checks being presented for payment such as counterfeit, duplicate or altered checks
, the corporation is notified of the possible fraudulent document to determine how it should be handled.
The indictment, and affidavit in support of a criminal complaint filed earlier in this investigation, allege that, beginning in December of 2002, WORLEY deposited fraudulently obtained and altered checks
into his corporate account at Citizen's Bank.
Check fraud is one of the fastest growing forms of financial crime in the United States with the most common types being counterfeit checks, altered checks
, forged signatures and stolen checks.
The Office of the Comptroller of the Currency has identified the two most common forms of check fraud: altered checks
, where the payee or amount has been changed on what was a legitimate check, and counterfeit checks that look legitimate and are drawn on valid accounts but cashed by someone using fake identification.
It is alleged that the defendants deposited over $200,000 into these various accounts in October, November and December of 2001, using stolen, altered checks