DMIA Print Solutions Web

Answers to Frequently Asked Questions What are security features and why are they important? What types of documents should have security features? What is the difference between overt and covert features? Will security features cost more? Is the padlock symbol on a check a security feature? What does the term "due diligence" mean when applied to checks? Besides adding security features, what can I do to reduce my risk of fraud? How can I market security documents to my customers? What are security features and why are they important? The term security feature encompasses special types of paper, inks and printed features that discourage or deter counterfeiting or alteration of documents. Some features also help document recipients, such as a bank teller, verify that a document is an original one that has not been tampered with. In the old days, the unsophisticated forger used a bottle of bleach to change the amount on a check. At the other end of the spectrum, sophisticated criminals relied on printing presses to duplicate negotiable documents. With the advent of high-end color copiers and the availability of desktop publishing systems, millions of people now have access to technology that can be used to duplicate documents quickly and easily. Security features have been likened to home security systems. No document is forge-proof, but those that are harder to duplicate are less likely to be targeted by criminals. For a good overview of this topic, read "Checkmating Corporate Check Fraud" at the Bank of America Web site. Once you get to the BofA site, click on the search button and input "check fraud" to retrieve the appropriate articles. Back to Top What types of documents should incorporate security features? Checks, of course, require security features. Thanks to tabletop laser printers that use MICR toner, criminals no longer need printing presses to duplicate MICR numbers. Other negotiable documents such as cashier's checks, refund checks, gift certificates and coupons all should incorporate security features as should a variety of other documents. See Protect These Documents! Back to Top What is the difference between overt and covert features? Overt features are those that can be seen with the naked eye. They include split fountain printing, bleed-through numbering and foil stamping. Covert or hidden features are not obvious and may require a device such as a magnifying glass (microprinting) or black light (fluorescent fibers and planchettes) to authenticate. Experts recommend that documents incorporate both types of features. Back to Top Will security features cost more? Probably--but that depends largely on your vendor, the types of features ordered, even the quantity ordered. For example, some pantographs and microprinting are added during composition and may be provided free or for a nominal charge. On the other hand, the copy void pantograph and Copy Ban+ are licensed to manufacturers, who pay Standard Register royalties, so additional charges are likely. In addition, some specialty papers cost more and may require large minimum quantities. Back to Top Is the padlock symbol on a check a security feature? The padlock icon, as it is called, is a signal to check recipients that the document includes security features. Printers wanting to use the padlock icon must be licensed by the Financial Stationers Association. In addition, FSA guidelines for use of the icon dictate that a document containing the icon have at least one security feature (in addition to the icon) on the front of the check and a warning box on the back of the check that lists those features. Back to Top What does the term "due diligence" mean when applied to checks? When Articles 3 and 4 of the Uniform Commercial Code were revised a few years ago, many people in the printing industry interpreted the changes to mean that liability for forgery losses can be shifted from banks to bank customers. Experts have interpreted this to mean that businesses must show "ordinary care" on their part to prevent or deter forgery. This could encompass the inclusion of security features as well as proper storage of documents and account reconciliation. Back to Top Besides adding security features, what can I do to reduce my risk of fraud? The proper storage and handling of security documents is critical. Many fraud problems result because checks are not properly stored and bank accounts are not reconciled immediately. Experts recommend that checks be stored in a secure area, and that only key people have access to them. Mechanical signing equipment should be kept in a separate, secure area. Bank accounts should be reconciled as soon as statements arrive, and the person who reconciles accounts should not be the same person who issues checks. If you discover a fradulent check, notify your financial institution promptly. Never dispose of negotiable documents in a dumpster. Ask your vendors how they store negotiable documents. Printing plates for such documents should be destroyed or recycled; negatives should be kept in a secure place. Back to Top How can I market security documents to my customers? There are many things that you can do: Circulate articles about fraud to customers and salespeople to raise awareness. Gather samples from manufacturers that show security features. Use black lights and loupes to demonstrate microprinting and fluoresecent fibers. Never advertise your products as forge-proof. Security features are designed to deter criminals, but no document is forge-proof in the hands of a sophisticated, determined criminal. Join forces with banks. Bank managers will be pleased that you are trying to convince their customers to make documents more secure. Banks also can be a great source for referrals. Back to Top Back to Document Security