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In the past, financial institutions were held responsible for most of the financial
losses due to check fraud, however recent revisions to the Uniform Commercial Code (UCC)
have passed some of that liability onto businesses and corporations. In most cases, courts
will refer to sections 3 and 4 of the UCC for the concepts of "ordinary care",
"contributory negligence" and "comparative negligence" to determine which party is
in the best position to prevent fraud.
The best defense financial institutions and commercial businesses can take against
check fraud is to have:
- Knowledge of the Uniform Commercial Code (UCC)
- Internal controls
- Preventative security measures
Choosing to protect your valuable documents is no longer optional. With the availability
of electronic publishing and advance scanning and copying equipment, check fraud artists
have enormous alteration and duplication capabilities. They also use chemical erasures
to alter the checks and phony I.D. to pass them.
The top 4 catagories of check fraud:
- Altered checks
- Counterfeited checks
- Forged checks (either by falsifying the signature or endorsement)
- Checks drawn on closed accounts
There are measures you can take to protect your documents from being easy targets.
Printcom can help you pick a strong combination of document security features.
Theis is another way that we help our clients “manage” their print buying.
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