# Identity Fraud. Check washing



## Chief Hill (Sep 24, 2009)

*I thought I would chime in on an issue that a lot of people have heard of but do not really pay attention to when selling their pens.*
*Check washing, is a billion dollar a year check scam in the US alone. People use to forge your personal hand written checks. A personal check that has been written is simply stolen when it’s been filled out by the writer. Via mail, Break and enter etc. A bath of acetone is used to simply wash away roller ball ink and viola you have a signed blank check. Good luck proving you give that to the thief.*
*The following video explains everything perfectly.*
http://www.youtube.com/watch?v=iwUTvIyRvdk&feature=youtube_gdata
*Now my issue. I know it’s a big deal for a company to advertise (Uni-ball) to say they have the protection only there ink will do this bla bla…. There the best nobody can do better etc…. But this is not the case.*
*From what I have read all over the net, and tested personally is that ANY GEL ROLLERBALL. Will prevent this from happening. This is a good thing for us Pen Makers.*
*Pigmented Gel inks will leak into the paper of the check as well as Fountain Pens. I have done this with multiple inks, To make a long story short I took one of my personal checks. Multiple roller ball gel inks, fountain pens, and then Ball point pens and drew lines down a check. Washed it in a bath of acetone for 5 minutes and only the Ball Point inks were affected by the acetone. Simply said from what I can tell and everything I have read Gel roller balls were invented to have the smooth writing / convenience of a fountain pen but without the issues. (Wet ink, care of the pen. filling, priming. Etc) But because roller ball inks leak into the paper of the check it can’t be washed out as its “locked into the paper” A ball points ink whether its oil based stain, water based ink is transferred onto the surface of the paper and is easily washed.*
*So to everyone who sells pens. EXPLAIN THE ABOVE to your customers that your fountain pens and roller ball pens will protect them from identity fraud. This should be explained to your customers regardless but it has increased my sales as well especially with some doctors fearing this issue with check or even prescription changes.*
*Questions? Comments?*


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## tim self (Sep 24, 2009)

Thanks, its definately an interesting point and a remarkable sales pitch.


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## Jim15 (Sep 24, 2009)

Thanks for the info. Rob.


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## Daniel (Sep 24, 2009)

I have been using this as a sales point for years and actually have a page on my web site with an article about check washing. I always ask my customers if they will be using the pen for writing checks, if so I make it clear that I do not recommend all my pens for that use and if they still want a ball point to at least use a black ink refill in it.


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## Chief Hill (Sep 24, 2009)

Daniel said:


> I have been using this as a sales point for years and actually have a page on my web site with an article about check washing. I always ask my customers if they will be using the pen for writing checks, if so I make it clear that I do not recommend all my pens for that use and if they still want a ball point to at least use a black ink refill in it.



I am glad to see you using this as well Daniel.  I was considering the same type of thing for my website as well.  People are impressed about check washing I even am considering setting up a simple small experiment for people to see at shows.  A few blank checks. And a small container filled with acetone.  2 min of their time and they will be amazed on how easy it is to rip someone off.


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## titan2 (Sep 24, 2009)

Chief Hill said:


> I am glad to see you using this as well Daniel. I was considering the same type of thing for my website as well. People are impressed about check washing I even am considering setting up a simple small experiment for people to see at shows. A few blank checks. And a small container filled with acetone. 2 min of their time and they will be amazed on how easy it is to rip someone off.


 
_Might want to be careful about a demo.....no need to educate the miscreants!!!  Now, a before & after display could very well educate the public without making it a "How To Demo".  Just seeing the results could be very eye opening for your customers!_
 
 
_Barney_


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## jkeithrussell (Sep 24, 2009)

I don't know why anyone would want to stick out their neck so far as to sell someone a certain type of ink on the representation that they are buying protection against check fraud.  I guess if you have studied check fraud sufficiently to feel comfortable making an exchange of such a warranty for a couple of dollars in ink or pen sales, then be my guest.  Otherwise, it seems to me like the more sensible course would be to offer ink based on how it writes and let your customers worry about check fraud.  Just my 0.02.


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## DCBluesman (Sep 24, 2009)

*Check washing is really 20th century technology.* 

With modern publishing software and color copiers/printers, most respectable (and successful) 21st century passers of fraudulent checks are simply creating near-perfect copies of your check.  You can even get the proper ink for MICR encoding (the numbers on the bottom of your check) and virtually the same paper as used by the major check producers.  

There are pages and pages of FBI, US Treasury, Bureau of Engraving and Printing and U.S. Court documents on these newer technologies.

I'm glad the FUD factor (*f*ear, *u*ncertainty and *d*oubt) works for you, but I prefer to sell my pens based on their value and let the customer decide how to handle identity theft.


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## Chief Hill (Sep 24, 2009)

Simply said. Before people misread....,,  I tell the customer that gel inks protect against the check/document forgery.  I don't give warreny's guarentees etc.  Simple knowlege.  Gel is just a + for protection in the customers eye.  Why not mention FACTS???



 In Canada we won't be sued for 8 million dollers because of a he said she said thing Unlike other places where if you sneeze the wrong way someone can sue you for 25 million dollers for getting snot on their shirt and claim mental anguish for the rest of their life.  

For thoes speaking about 20 century this and that.  Once again check washing Alone is 1 BILLION dollar a year scam and it's easy. Buy a pail and 1 bottle of nail polish remover and your ready to steal.  Or you can go spend 6 months making computers. Lasers blahh blahh to scam.  Ahhh NOPE  the majority will do it the easy way.
 So lazer scanners computers and all the techology crap.  Were talking about granny smith getting her check stolen out of the mail and a 
 moron, criminal washing her check and rewriting it for 500 bucks or so.  

The people that go to the extent of using sopisticated 21st century technology are going for Massive amounts of money.  Not granny smiths pension account.
Granny smith is who is standing in front of your booth.  Not a billion doller organization that concerns itself with check washing.  The basic consumer us who has to worry about this.


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## jkeithrussell (Sep 24, 2009)

Chief Hill said:


> Simply said. Before people misread....,, I tell the customer that gel inks protect against the check/document forgery. I don't give warreny's guarentees etc. Simple knowlege. Gel is just a + for protection in the customers eye. Why not mention FACTS???


 
Perhaps it is simply that the law is different in Canada, and I wouldn't know.  At least under Texas law, if you tell someone that the ink you are selling them protects them against forgery, that's a warranty. I would be surprised if you could make such representations in Canada without it having the effect of a warranty. If you tell someone that they are buying protection against forgery, you have to deliver it.  

I still have to wonder why you are going out of your way to convince people that gel ink gives them such protection.  Is this something that you are so completely confident of that it is a big selling point for you?  Not trying to be contrary, but it seems a little odd to me.


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## DCBluesman (Sep 24, 2009)

Chief Hill said:


> For thoes speaking about 20 century this and that. Once again check washing Alone is 1 BILLION dollar a year scam and it's easy. Buy a pail and 1 bottle of nail polish remover and your ready to steal. Or you can go spend 6 months making computers. Lasers blahh blahh to scam. Ahhh NOPE the majority will do it the easy way.
> So lazer scanners computers and all the techology crap. Were talking about granny smith getting her check stolen out of the mail and a
> moron, criminal washing her check and rewriting it for 500 bucks or so.
> 
> ...


 
Perhaps things are different in Canada and in other parts of the world, but this type of fraud was in significant decline in the mid 1990's, as evidenced by this report.



> August 1996 Check Fraud: A Sophisticated Criminal Enterprise By Keith Slotter, CPA ________________ *Special Agent Slotter works in the Financial Institution Fraud Unit at FBI Headquarters in Washington, DC.* ________________ (Criminal organizations are using increasingly sophisticated techniques to perpetrate check fraud.) Like waves on the ocean, variations of fraudulent activity keep pounding the shores of the banking industry. Prior to the 1980s, bank fraud schemes generally involved only a few transactions perpetrated by a single individual or small group. Losses averaged less than $100,000 to the victim institution, and law enforcement investigations were fairly routine in nature. Following deregulation of the savings and loan industry in 1982 and the initiation of more speculative, risky ventures by those in charge of these institutions, a new wave of fraud emerged. During the late 1980s and early 1990s, large-scale frauds perpetrated by institution insiders and those held in trust within the banking industry became prevalent. Law enforcement agencies used massive, task force-oriented investigations to calm the surge of these frauds. As a result, the banking industry as a whole has stabilized and continues to insulate itself from insider abuse. Conversely, a flood of fraud perpetrated by outsiders, especially organized ethnic groups, has risen dramatically since 1987. Outsider fraud now accounts for more than 60 percent of all fraud against financial institutions.1 The most prevalent problem in the industry, by far, centers on check fraud, but also involves other counterfeit negotiable instruments, such as traveler's checks, credit cards, certified bank checks, money orders, and currency. EXTENT OF THE PROBLEM In its 1994 Check Fraud Survey, the American Bankers Association (ABA) indicated that the volume of check fraud against financial institutions increased by 136 percent from 1991 to 1993. During this same period, dollar losses rose 44 percent, from $568 million to $815 million annually. The country's major financial institutions attribute fully one-half of all check fraud to professional and organized group efforts.2 Financial institutions do not suffer alone as victims of fraud. For the past 2 years, the Forensic and Investigative Services Division of KPMG Peat Marwick, one of the big six accounting firms, has compiled an annual fraud survey of the 2,000 largest U.S. corporations. These companies reported check and credit card fraud as their most problematic losses during 1994. The responding companies suffered an average annual check fraud loss of $360,000, an increase of 38 percent from 1993. Alarmingly, over two-thirds of corporate executives believe these losses will continue to mount over the next several years.3 More than 1.2 million worthless checks are accepted for payment every day.4 The technological improvements that have fueled the growth in check fraud schemes have made it difficult for law enforcement to combat the problem. Forbes magazine reported on the trend in 1989, stating "...the desktop computer did not create the crime of forgery. All it did was make the tools user-friendly."5 With the prevalence of laser printers and advanced duplication systems, the production of quality counterfeit checks has become commonplace. In addition, Congress unwittingly aided the business of duplicating and counterfeiting checks. By passing legislation in 1988, known as Regulation CC,6 Congress made detecting fraudulent checks even more difficult for financial institutions. This law requires banks to process checks within a 72-hour period and ostensibly provides customers with increased access to deposited funds. While the regulation may have succeeded in making depositor's funds more accessible, it also made passing fraudulent checks easier by giving banks less time to confirm the legitimacy of these transactions. CHECK FRAUD ORGANIZATIONS Worldwide, 80 billion checks exchange hands annually; 60 billion of those are written in the United States.7 As anyone who has mailed a check to the mortgage company 3 days before payday can attest, Americans have become enamored with writing checks and taking advantage of the "float" period, the time during the check-clearing process. Criminal elements within numerous immigrant groups in the United States have analyzed American banking, noting the system's deficiencies and the fact that it affords opportunities for fraud. Presently, organized ethnic enterprises conduct a sizable portion of annual check fraud activity throughout the country. The Major Groups The principal ethnic enterprises involved in illegal check fraud schemes include Nigerian, Asian (particularly Vietnamese), Russian, Armenian, and Mexican groups. The majority of the Vietnamese, Armenian, and Mexican organizations base their operations in California, especially in the Orange County, San Francisco, and Sacramento areas. However, they have networked their operations throughout the country, with a number of connections in Chicago, Houston, and Washington, DC. The Nigerian and Russian groups, with bases in the northern and eastern areas of the country, exhibit more nomadic tendencies. They roam throughout the United States, stop to pass stolen or counterfeit checks, and then move on to new locations. The Russian groups initially established themselves in New York but have extended their activities to Chicago and the West Coast. Nigerian groups often solicit legitimate identification and account information to further their check fraud schemes. Recently, law enforcement authorities have noted their interaction with Vietnamese organizations in the Chicago and Houston regions. In the north-east, Nigerian rings have opened numerous investment accounts within various brokerage houses and deposited large sums of money using stolen and counterfeit corporate checks. Most West Coast Asian gangs began to organize their bank fraud activities during the 1980s and have continued to expand and develop these sometimes-sophisticated operations. Many such groups originated in Taiwan, Hong Kong, and Vietnam and include the Viet Ching, Big Circle Boys, V-Boyz, Wo Hop To, Wah Ching, and Red Door gangs.8 Within the Asian gangs, known as triads, the group leader usually holds the title of "master" and oversees all organizational operations. Current investigations indicate that some Asian groups have been dealing with Russian counterparts, especially to negotiate (deposit or cash) counterfeit currency through the banking system. Recently, members of the Russian Mafia obtained such currency, which was printed in Montreal, Canada, sold to several West Coast Vietnamese factions, and distributed throughout California. Notably, each of these groups conducts a myriad of white-collar, drug, and violent crimes. The groups perceive check fraud--unlike drug trafficking, extortion, or murder--as a "safe" crime; it carries minimal penalties and a low risk of apprehension. The Players Regardless of ethnic origin, groups involved in check fraud maintain certain universal characteristics. Unlike traditional, tight-knit, organized criminal groups, such as La Cosa Nostra, these groups, which may embody several hundred members, usually are loosely organized. Members often network among several organizations. Despite the lack of a rigid hierarchy, members typically fall into one of several roles--leader, check procurer, counterfeiter, information broker, or check passer. Leaders Leaders of an organization generally have an extensive criminal history and possess above-average intelligence. Often, they have a degree in business and/or law. These individuals provide the overall direction of the group, as well as expertise in understanding American business and the banking system. Check Procurers Check procurers obtain authentic checks, usually by stealing them while employed within a financial institution. Group members then sell or negotiate the stolen checks as is, or they duplicate the checks for future use. Counterfeiters Counterfeiters duplicate corporate and payroll checks, traveler's checks, credit cards, certified bank checks, money orders, currency, and other negotiable instruments, as well as personal identification. They usually are well-versed in the use of personal computers, especially in the field of desktop publishing. Information Brokers Information brokers gather personal and financial information on legitimate individuals. Using this credible information, associates open new bank accounts, pass counterfeit checks, and secure loans, which they fail to repay. Check Passers Check passers actually negotiate stolen and counterfeit checks through the banking system and collect the proceeds to distribute to the group. They often travel throughout the country, opening new accounts and transporting their illicit proceeds. Typically, they negotiate only about 10 percent of a group's illicit checks; the group sells the rest of the checks to other individuals and organizations. Check passers maintain little contact or status within the hierarchy and often are the only members whose ethnic backgrounds differ from the core group. Ethnic organizations tend to distrust anyone not of their own heritage, making it difficult for law enforcement to infiltrate them. Even though police frequently arrest check passers throughout the country, these street-level criminals generally possess little information concerning upper-echelon group members. TYPES OF CHECK FRAUD SCHEMES The variety of check fraud schemes perpetrated throughout the country ranges from depositing single stolen checks to counterfeiting thousands of negotiable instruments and processing them through hundreds of bank accounts. Although it is impossible to summarize all of the check fraud schemes currently operating, three schemes in particular--large-scale counterfeiting, identity assumption, and payroll check fraud--typify frauds being tracked by bank security officials and law enforcement authorities throughout the nation. Large-scale Counterfeiting The most notorious groups engaged in large-scale counterfeiting operations are the Vietnamese triads operating out of Orange County, California. Members routinely get jobs within local financial institutions in order to collect master original bank checks, money orders, and corporate/payroll checks for counterfeiting. The triad masters, who often are counterfeit experts with a host of duplication devices, manage the groups' criminal activities. The groups exchange their counterfeit instruments for cash in a variety of ways. Check passers directly negotiate a portion of the counterfeit documents through financial institutions. They deposit the fraudulent checks, often into new accounts, and withdraw the funds before the bank can complete the check-clearing process and discover the fraud. The transient check passers open accounts in different institutions throughout the country; however, group members within the organizational hierarchy ultimately control their activities from a home base. In order to minimize their ex-posure to law enforcement, the counterfeiters sell the majority of their phony goods to third parties for negotiation or further resale. They create most counterfeit checks in $2,000 to $5,000 increments and sell them to black market customers at 5 to 25 percent of their face value, depending on quality and appearance. Identity Assumption Seen in various metropolitan areas, identity assumption schemes often involve Nigerian and Vietnamese criminal organizations. Group members obtain employment or develop sources in local banks and credit agencies so they can acquire otherwise confidential information on bona fide bank customers. The groups then create counterfeit identification, including driver's licenses, social security cards, and credit cards, to assume the innocent person's identity. Under the assumed identity, the criminals open new bank accounts, which they use to deposit fraudulent checks and subsequently withdraw the funds, as well as to secure personal loans and lines of credit. Once bank accounts have been established, the financial institutions become vulnerable to a variety of frauds. Prior to depositing fraudulent checks and withdrawing the proceeds, the "customer" is likely to obtain a credit card account with a substantial credit line. The perpetrators withdraw funds against the credit line and distribute the money within the criminal organization, along with any bogus loan money they have procured. After withdrawing monies pursuant to the deposit of fraudulent checks, the "customer" leaves town, and the bank sustains a substantial loss. Such schemes hurt more than just the banks, however. The innocent people whose identities were assumed suffer from ruined credit histories, which may inhibit their future financial activity. Payroll Check Fraud A variation of the identity assumption scheme involves placing group members within payroll check-processing companies. These firms compile and distribute payroll checks on behalf of their corporate clients. The miscreant employees print duplicate payroll checks for various client recipients. They then steal the checks from the premises, and the group duplicates them for negotiation. Concurrently, the group obtains full background identifying data on the client's regular employees, which can be used in future schemes. METHODS OF ALTERATION New technologies give check fraud perpetrators a wide variety of schemes and devices for committing their crimes. Chemical techniques and computers provide the primary means by which criminals manipulate and counterfeit checks. Chemical Techniques Legitimate personal checks can be changed easily by chemical means. Similarly, someone well-versed in manipulation techniques can modify corporate checks, traveler's checks, bank checks, and U.S. Government checks with minimal effort. Chemical alteration is commonly referred to as "check washing." Check washers use a variety of acid-based chemical solutions to erase amount and payee information, while maintaining the integrity of the preprinted information. They then dry the check and inscribe a new payee and a significantly higher dollar amount before presenting it to a bank for payment. One acid-based solution even allows criminals to revise a check and subsequently destroy the evidence. In this instance, the check washers must move quickly because the chemical solution causes the paper to disintegrate within 24 hours, leaving no supporting evidence of the transaction. Technology Today's computer technology makes it relatively simple to counterfeit checks. A counterfeiting operation requires only a laser scanner to capture the image of an original check, a personal computer to make changes, and a quality laser printer to produce the bogus check. The necessary equipment can be obtained for less than $5,000. Once an original check has been scanned, its data can be manipulated and reprinted with ease. Still, the counterfeiter faces the tough challenges of matching the paper stock used by the check manufacturer; correlating complex color schemes, such as those used on U.S. Government and traveler's checks; and overcoming some of the counterfeiting safeguards currently used by legitimate check printers. Yet, counterfeiters can overcome even these hurdles without much difficulty. A number of unscrupulous printers throughout the country offer preprinted checks containing whatever information the customer desires, without bank confirmation or concurrence. Further, today's computers can come very close to duplicating even the most complex color schemes and check safeguards. A counterfeiter's success hinges on knowing that most checks will not be scrutinized closely enough to detect the fraud until they have been cashed and cleared through the banking system. FRAUD PREVENTION In order to prevent fraud, check-printing companies offer a variety of counterfeiting safeguards.9 All such features make attempted alteration detectable in one way or another. Yet, these enhancements are not foolproof and often prove cost-prohibitive to the purchaser. In response, financial institutions have begun to implement a type of biometric fingerprint identifier as a more cost-effective approach. In early 1995, Bank of America (BOA) in Las Vegas, Nevada, became the first financial institution to use fingerprinting technology to deter check fraud.10 At BOA, when customers who are not account holders present checks for payment, they must place an inkless fingerprint next to their endorsement. When bank officials identify an attempted fraud, the fingerprinting system provides law enforcement with evidence and background information never before attainable at the onset of an investigation. This pilot project has garnered impressive results. BOA officials report that the biometric identification system nearly has eliminated check fraud schemes perpetrated by outsiders. It also has reduced the bank's overall fraud by 40 percent.11 BOA's success in Nevada has spurred the Arizona Bankers Association to lead a campaign with member financial institutions to implement a similar program. A core group of Arizona-based banks implemented this technology in the fall of 1995. Moreover, BOA officials plan to extend fingerprinting operations to their branches in Texas and New Mexico. A number of financial institutions have expressed a desire to expand the program to new customer accounts, another hotbed for fraudulent checking activities. During this implementation process, the banks involved have become cognizant of the sociological and privacy concerns underlying such an identification system. Some customers fear the improper use of identifying information. Bank officials stress, however, that no central database of fingerprint information will be maintained and that these records will be furnished to law enforcement only pursuant to suspected criminal conduct. LAW ENFORCEMENT SUCCESSES Criminal investigators working negotiable instrument fraud cases, especially involving organized groups, have begun to achieve significant results by using a task-force approach and by promoting effective cooperation with their international law enforcement counterparts. In March 1994, officials from eight federal, state, and local law enforcement agencies in California12 combined forces to raid a contingent within the Wo Hop To triad, arresting nine subjects and seizing more than $500,000 worth of merchandise obtained through counterfeiting activities.13 The Westminster, California, Police Department's Tri-Agency Resource Gang Enforcement Team, as well as various San Francisco Bay area task forces, has conducted successful raids and arrests targeting Asian criminal organizations involved in check fraud and counterfeiting enterprises.14 Similarly, the Los Angeles Division of the FBI successfully investigated a local gang involved in a check alteration scheme in which the culprits deposited $600,000 worth of fraudulent checks into accounts at American Savings Bank and subsequently converted the funds to gold krugerrands. Since its inception in 1992, the Phoenix, Arizona, Financial In-stitution Fraud Task Force has achieved impressive results in the fight against bank fraud, particularly check fraud. As of March 31, 1996, this task force15 had indicted 451 subjects with 342 convictions returned.16 Various FBI field offices throughout the country are studying the success of this particular task force in the hope of establishing similar programs within their jurisdictions. The Interagency Working Group on Nigerian Crime in Washington, DC, is cultivating cooperation among Nigerian law enforcement agencies to help combat the growing fraud problems associated with these groups. In July 1995, Nigerian authorities raided a Lagos-based organization and arrested numerous locals involved in check fraud and counterfeiting operations. The Royal Hong Kong Police have provided great assistance to U.S. law enforcement in tracking suspects and providing intelligence information on fraudulent operators believed to have migrated to America. CONCLUSION Checks can be either stolen, manipulated, or counterfeited. Illicitly obtained checks can be negotiated immediately, altered, or used for future counterfeiting. Generally speaking, only unsophisticated criminals acting alone will immediately negotiate stolen checks by forging the signature. Most organized groups steal checks as a prelude to more enterprising endeavors. Bank security officials and law enforcement agencies concur that the problems associated with check fraud and counterfeit negotiable instruments have reached epidemic proportions. As criminal organizations become more sophisticated in the devices they use, law enforcement also must become more creative and sophisticated in the techniques used in its investigations. To meet this challenge, the battle against check fraud is best fought through cooperation--among agencies, bankers, bank regulators, and the public. Endnotes 1 FBI Financial Institution Fraud Criminal Referral Statistics for Fiscal Year 1995, September 30, 1995. 2 American Bankers Association, "1994 ABA Check Fraud Survey," November 30, 1994. 3 KPMG Forensic and Investigative Services, "1994 Fraud Survey," March 1, 1995. 4 Frank W. Abagnale, "Document Verification and Currency Transactions Manual," Abagnale & Associates, 1994. 5 David Churbuck, "Desktop Forgery," Forbes Magazine, November 27, 1989, 246. 6 Expedited Funds Availability Act, 12 U.S.C.  4001, et seq., passed 8/10/87, enacted 9/1/88. 7 Supra note 4. 8 "Asian Gangs Involved in Credit Card Fraud," Intelligence Operations Bulletin, Office of the Attorney General, California Department of Justice, vol. 47, December 1994. 9 Check-printing companies offer a variety of counterfeiting safeguards, such as embossing, artificial watermarks, laid lines, chemical voiding features, warning bands, high-resolution printing, dual image numbering, and security number fonts. 10 Steven Marjanovic, "Arizona Group Pushes Fingerprinting as a Ploy to Deter Check Fraud," The American Banker, July 6, 1995, 10. 11 Robert Bird, Vice President, Bank of America, San Francisco, California, remarks at meeting of the Bank Fraud Working Group subgroup on Check and Credit Card Fraud, Washington, DC, July 19, 1995. 12 Participating agencies include the Bureau of Investigation of the California Department of Justice; the Antioch, Oakland, and San Francisco police departments; the U.S. Secret Service; the Immigration and Naturalization Service; and the U.S. Customs Service. 13 Supra note 8. 14 "V-Boyz," Intelligence Operations Bulletin, Office of the Attorney General, California Department of Justice, vol. 46, November 1994. 15 The task force comprises law enforcement officials from the FBI; the Phoenix, Tempe, Glendale, Mesa, and Scottsdale police departments; the Maricopa County Attorney's Office; the Arizona Attorney General's Office; and the U.S. Attorney's Office. 16 Kathryn Brewer, Financial Analyst, Financial Institution Fraud Task Force, Phoenix, AZ., telephone interview with author, April 1996. Sidebar 1 Identifying Fraudulent Checks To recognize check fraud, law enforcement officials must know as much about these instruments as the criminals. Perforation Almost all legitimate checks have at least one perforated edge; counterfeit checks are often smooth on all sides. Federal Reserve Routing and Transit Number The routing and transit fraction number in the top right hand corner (below the check number) should correspond to the electronically encoded number, known as the MICR, on the bottom center of the check. Fully 98 percent of all fraudulent checks have an incorrect Federal Reserve transit number. Federal Reserve District and Office The first three digits in the MICR line represent the state and district office to which the bank is assigned. On fraudulent checks, these numbers often do not correspond appropriately. Serial Number Match The encoded check serial number on the bottom left should correspond exactly with the check number in the top right corner. Check Number Low numbered checks also indicate potential fraud; 90 percent of all check frauds involving insufficient funds are numbered 101-200. Source: Frank W. Abagnale, Document Verification and Currency Transactions Manual, Abagnale & Associates, 1994. Sidebar 2 A Typical Scheme In September, 1994, a San Bernardino County, California, undersheriff received a letter at his residence from an alleged Nigerian businessman promoting a typical fraud scheme. The letter advised that the Central Bank of Nigeria was holding $35 million in U.S. currency, which was due to him as a foreign contractor. This "businessman" was seeking assistance in transferring this money to the United States and needed an American bank account in which to deposit the proceeds. In exchange for his account number and temporary use of the account, the undersheriff was promised 30 percent of the deposited funds for his services. Source: "Nigerian Schemes Continue," Intelligence Operations Bulletin, Office of the Attorney General, California Department of Justice, vol. 53, February 1995.


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## Chief Hill (Sep 24, 2009)

jkeithrussell said:


> Perhaps it is simply that the law is different in Canada, and I wouldn't know.  At least under Texas law, if you tell someone that the ink you are selling them protects them against forgery, that's a warranty. I would be surprised if you could make such representations in Canada without it having the effect of a warranty. If you tell someone that they are buying protection against forgery, you have to deliver it.
> 
> I still have to wonder why you are going out of your way to convince people that gel ink gives them such protection.  Is this something that you are so completely confident of that it is a big selling point for you?  Not trying to be contrary, but it seems a little odd to me.



To answer your question yes it's a good selling point for people I have spoken with. No I am not sticking my kneck out.
  Yes the laws are completely different I am glad I don't reside in Texas.  Sounds like the laws are a bit off.  Tell someone somthing and it's wrong off to to court to be sued eh!  Good luck with that.  Courts work with black and white paperwork.  If it's not written it's not said.  This is why people say get it in writing.  Good luck prooving word of mouth guarentee in court. If it does work that way in Texas I thank god I don't live in a judicial system that works  like that.  Everyone would be rich.  


And the 10 min long report that I will not quote.  Please start back at page 1 of this forum and simply read it all agian.  You may get the point eventually that I was giving some information.  People don't care if it's on the decline.  IT'S STILL HAPPENING..... It was posted as a FYI. So come on back from way out in left field.  I am done jusifying here.  Do what you will other people posted comments say they use similar info.  If you don't no problem and good luck.


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## Texatdurango (Sep 24, 2009)

I don't see a problem at all.  Just for grins I took a check and wrote on it with every pen I could pick up... ballpoints, rollerballs, gel balls, Schmidt, Schneider, Hauser, the works!

Put the same brand of acetone used in the video demo (I assume the same brand since the can colors were the same) in a saucer and put the check in.

Went off and poured some coffee and after 7 or 8 minutes came back and saw that every one of the writings were still visible.  A couple of the ballpoints were faded a bit and had gone from black to a light purple but the rest were still very noticable.

Perhaps all inks these days are better than a few years ago and the Uniball folks are just trying to sell a few pens and/or refills based on the fears of others.


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## jkeithrussell (Sep 24, 2009)

Chief Hill said:


> I am glad I don't reside in Texas. Sounds like the laws are a bit off. Tell someone somthing and it's wrong off to to court to be sued eh! Good luck with that. Courts work with black and white paperwork. If it's not written it's not said. This is why people say get it in writing. Good luck prooving word of mouth guarentee in court. If it does work that way in Texas I thank god I don't live in a judicial system that works like that. Everyone would be rich.


 
Well, that's one point of view. The other is that the laws prevent people from making verbal promises or representations that they can't keep just to entice people to buy things. The notion you have that any slight misrepresentation ends up in a 25 million dollar lawsuit in the US is not based in reality, but there's not much point in arguing it. I've had this conversation enough times over the years to know what it means when someone says that they are glad they can say what they want in salesmanship as long as there is nothing in writing to prove it.  If you are willing to tell people that the ink you are selling prevents check fraud, you should also be willing to give it to them in writing.  I'll sign off and let you have the last word.


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## skiprat (Sep 24, 2009)

I'm very surprised that checks ( or cheques:wink: ) even still get used in USA or Canada. In most of Europe they are virtual extinct. Very few places will take one and if they do, you need a chipped guarranty card to be swiped first anyway. In fact the ONLY time either my wife or I have used a check in the last five years was to pay for a school outing for the kids, where the school doesn't want the kids carryng cash.
I'm pretty sure that some of our banks won't even issue check books anymore.


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## khogan16 (Sep 24, 2009)

I must say this, I know that this type of crime is not in going away. I deal with this day in and day out. You wouldn't believe what people will take as a good check.  As far as the Uni-ball scare tactic, Trust me it is not. The man that developed the uni-ball 207 was specifically designed to stop check washing. It was created by Frank Abagnale Jr. As well as all of the new U.S. Currency counterfeit protections. If anyone would know he is the man, he has been in the fraud market  for a long time. He now works for the government to help stop the fraud / counterfeit people.  According to Abagnale, the ink has to be a Pigment based ink which bonds to the fibers of the paper that it is written on, if it is a dye based it will wash off with the correct chemicals because it merely stains the surface of the paper. If the inks that are used are Pigment based then I am sure that they too would protect you/ your customers to some degree. It is a point to tell them that but I would look further into this before I make that claim.

I sell pens, but if a person can not afford one of my pens, I would not be upset if they bought a Uni-Ball pen that is known to specifically stop check washing. I like to think that my pens are more of a personal choice as well as an expression of their personality. Not everyone can afford a nice pen and I understand that.  I hate to see people victimized by criminals.

I have seen checks that were taken by cashiers that had so much white-out on them that if they hit the ground they would break into thousands of pieces. Then you have places like walmart that give the fraudulent check back to the customer that passed it.

Also, I must say this the twentieth century this and that as was stated by Chief Hill is where most of the new crimes come from. They are not taking six months to get the equipment, they buy or better yet they steal the computer and a laser or cheap ink jet, buy some check paper that we can easily get from an office supply store and now they can write thousands and thousands of dollars in checks. this is very lucrative job for them. they write the bank name from the banks own website and then put the account  numbers of another bank with a false name. I have had several cases that were in the 15 to 20 thousand dollars in loss. 
Now, remember that criminals are just that, Criminals. They have nothing better to do that sit around and figure out how to get around a system and take advantage of that. I am sure that the inventor of the hammer didn't create it to be weapon or a way to break into a structure.


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## Chief Hill (Sep 24, 2009)

khogan16 said:


> I must say this, I know that this type of crime is not in going away. I deal with this day in and day out. You wouldn't believe what people will take as a good check.  As far as the Uni-ball scare tactic, Trust me it is not. The man that developed the uni-ball 207 was specifically designed to stop check washing. It was created by Frank Abagnale Jr. As well as all of the new U.S. Currency counterfeit protections. If anyone would know he is the man, he has been in the fraud market  for a long time. He now works for the government to help stop the fraud / counterfeit people.  According to Abagnale, the ink has to be a Pigment based ink which bonds to the fibers of the paper that it is written on, if it is a dye based it will wash off with the correct chemicals because it merely stains the surface of the paper. If the inks that are used are Pigment based then I am sure that they too would protect you/ your customers to some degree. It is a point to tell them that but I would look further into this before I make that claim.
> 
> I sell pens, but if a person can not afford one of my pens, I would not be upset if they bought a Uni-Ball pen that is known to specifically stop check washing. I like to think that my pens are more of a personal choice as well as an expression of their personality. Not everyone can afford a nice pen and I understand that.  I hate to see people victimized by criminals.
> 
> ...



Thanks for the above I agree 100%. I was simply trying to say all along it's not going away. People need to be aware and educated.  We can help with that  by advising our customers that there is at least Some protection.  Gel pigmented inks.
I was quoting computers and such because it can't be used as an excuse not to protect ourselves from criminals.  But what I said is being taken the wrong way I guess.


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## gwilki (Sep 25, 2009)

The thing that got me in the video is that the guy says that bad guys take your cheque written in ballpoint and wash it. If they did that, the signature would disappear along with all the other information. On his cheque, he did the signature in rollerball ink to show that it stayed there while all the other information was washed away. However, in real life, the whole cheque, including the signature would be in ballpoint. The bad guy gets nothing after the washing if all he gets is a blank cheque. The rollerball guy is fearmongering by saying that the bad guy gets a blank, signed cheque that he can now make out for any amount and to any payee. That is not true. The bad guy gets a blank cheque - period. There is no signature on it.


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## Chief Hill (Sep 25, 2009)

gwilki said:


> The thing that got me in the video is that the guy says that bad guys take your cheque written in ballpoint and wash it. If they did that, the signature would disappear along with all the other information. On his cheque, he did the signature in rollerball ink to show that it stayed there while all the other information was washed away. However, in real life, the whole cheque, including the signature would be in ballpoint. The bad guy gets nothing after the washing if all he gets is a blank cheque. The rollerball guy is fearmongering by saying that the bad guy gets a blank, signed cheque that he can now make out for any amount and to any payee. That is not true. The bad guy gets a blank cheque - period. There is no signature on it.



Grant, the criminal would only submerge 1/2 of the cheque.  Only washing the amount information.  He/she would leave the signature intact.


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## mdburn_em (Sep 26, 2009)

skiprat said:


> I'm very surprised that checks ( or cheques:wink: ) even still get used in USA or Canada. In most of Europe they are virtual extinct. Very few places will take one and if they do, you need a chipped guarranty card to be swiped first anyway. In fact the ONLY time either my wife or I have used a check in the last five years was to pay for a school outing for the kids, where the school doesn't want the kids carryng cash.
> I'm pretty sure that some of our banks won't even issue check books anymore.




Just applied for a passport for my job.  State Department doesn't take debit or credit cards.  Acceptable form of payment?  Check.


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