As the incidence of check fraud rises, the days of processing payroll, vendor, and payment checks on pre-printed check stock are numbered. Using laser printers and blank check stock eliminates the risk of theft and reduces the cost of securing pre-printed stock. The movement to laser check printing has accelerated dramatically. New software and inexpensive MICR laser printers have made the solution accessible to most organizations.

While technological advances have made it easier to duplicate and forge checks, technology can prevent check fraud. Positive Pay, a service offered by many banks, is the best way for companies to protect against fraud. Positive Pay programs record the check number, dollar amount, bank information and date of all checks issued and transmit the data to the organization's issuing bank. All presented checks are then cross-referenced with these computerized records before payment. A check that does not match the file is not paid without approval. Used in conjunction with internal controls and paper-based features, positive pay minimizes company vulnerability and liability.

Adding visible paper features to blank check stock which are difficult or impossible to reproduce help guard against forgery. The void pantograph is composed of a series of dots that look uniform to the naked eye, but are actually too small to be reproduced clearly. As a result, the dots blend together when the check is either copied or scanned, producing the word "VOID" repeatedly across the check. Micro Printing, a similar feature, is not visible to the naked eye, but appears as a broken line when copied or scanned. It is crucial for companies to notify check recipients of each paper-based feature. One solution is "warning bands" which are printed across the front of the check listing each stock feature. Another method, promoted by the Financial Stationers Association, uses a "lock icon" to point to a list features on the back of the check.

Focusing on check fraud makes sound business sense. The good news is that there are tools and methodologies available to assist in the battle. These solutions will not only help prevent check fraud but they will save time and money, increase payment flexibility, and improve the efficiency of the payment process. Even more importantly, these solutions can lead to better management of the overall disbursement process by providing the stimulus to view payments not as isolated operations but as a process.

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