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CUTTING BAD-CHECK LOSSES

NCJ Number
68257
Journal
SAVINGS BANK JOURNAL Volume: 60 Issue: 8 Dated: (OCTOBER 1979) Pages: 53-54,56-57
Author(s)
B M GRAY
Date Published
1979
Length
4 pages
Annotation
WAYS FOR BANKS TO REDUCE BAD-CHECK LOSSES ARE DISCUSSED.
Abstract
BANK SECURITY DIRECTORS SHOULD DEVELOP A WORKING RELATIONSHIP WITH LOCAL, STATE, AND FEDERAL LAW ENFORCEMENT AGENCIES AND IMMEDIATELY REPORT ANY LOSSES OR SUSPICIOUS ACTIVITY TO THE APPROPRIATE AGENCY. ADDITIONALLY, BANK MANAGERS SHOULD HAVE A SECURITY HOT LINE TO INFORM OTHER BANKS OF CHECK-CASHING POLICIES AND SHOULD RECEIVE REGULAR ADVISORIES ABOUT NEW SCHEMES OF CHECK FRAUD. TELLERS SHOULD BE TRAINED TO SPOT FALSE IDENTIFICATION, BASED ON LAW ENFORCEMENT GUIDELINES, BY ASKING THE CUSTOMER ABOUT DETAILED PERSONAL INFORMATION ON THE IDENTIFICATION PLATE WHILE IT IS IN THE TELLER'S HANDS. MANY BAD-CHECK PASSERS HAVE NOT TAKEN THE TIME TO MEMORIZE SUCH INFORMATION. THE NATURE OF GOVERNMENT BENEFIT CHECKS AND THE IDENTITY OF THEIR HOLDERS CAN ALSO BE VERIFIED. SUCH MECHANISMS AS RECORDING FINGERPRINTS ON THE BACK OF A CHECK, USING CODED NUMBERS TO DETERMINE IF A PERSON HAS CASHED MORE THAN ONE CHECK IN A GIVEN DAY, AND CAMERAS AT EACH TELLER STATION, CAN DETER THE PASSING OF BAD CHECKS.