Renewed Importance of Check Security Symbols in Check Fraud Detection
- "The Big Three" in check security are Paper, Ink, and Printing
- Security symbols are now making a comeback
- Treasury checks use symbols as well
Only a few decades ago, physical security features on paper checks were a key component for detecting fraudulent checks. With a majority of paper checks flowing through tellers and back offices, bank employees were able to get their hands on physical checks to examine their legitimacy before processing.
Over the years, check printers developed new security features. Intuit Quickbooks provides a comprehensive list on their website, including microprinting on front, back, and signature lines, prismatic/UV multi-colored backgrounds, security holograms, and padlock icon. Even US Treasury checks have their own security features.
However, in today's check fraud landscape, many of these security features are less effective.
Flaws of Security Features
While effective when a individual is able to physically hold a paper check to examine, many security features are "erased" during the binarization of the check. This includes UV prismatic/UV multi-colored backgrounds and security holograms.
Additionally, microprinting is ineffective as the Check 21 act requires a resolution of 200 dpi.
Microprint — Extremely small print that is often used as a security feature on checks, ID cards, and other important documents. It is typically small enough that it appears as an ordinary line to the naked eye, but is actually comprised of tiny letters or patterns. Microprint is a widely used anti-fraud tool because it is extremely difficult to fake with common equipment. While scanners with resolutions of at least 600 dpi can actually read microprint with some accuracy, few printers exist that are capable of matching the very small print size.
Thicker or specific check stock is also not effective with the adoption of mRDC.
Why Security Symbol Detection Has Made a Comeback
One recent major check fraud trend has brought relevance back to check security symbols. In an effort to maximize counterfeiting output, fraudsters are either unable to recreate the security symbols or are not willing to put in the effort.
One example is a security padlock within the border of the check. Many fraudsters are utilizing a singular border, "copy and pasting" check field images. The security symbol(s) in the border will not match the check stock of the account.
OrboGraph is combatting this trend via development of a new image forensic analyzer as part of an enriched check stock validation process. The new Check Symbol Analyzer, part of the OrboAnywhere Turbo 6.0 release, compares symbols and their locations from previously cleared checks for detection of counterfeit or altered checks.
To learn more about the new analyzer, download the OrboAnywhere Turbo 6.0 Release Notes, or schedule a demo here.