SAN ANTONIO —Increasingly sophisticated technologies such as imaging software and high-quality color printers are making it easier for criminals to illegally obtain, create, duplicate, alter and even wash others’ checks for their own use and benefit. In fact, check fraud is the No. 2 threat against banking industry deposit accounts, surpassed only by identity theft, according to the 2004 ABA Deposit Account Fraud Survey.

In 2003, the total amount of attempted check fraud against commercial banks’ deposit accounts was $5.5 billion, up from $4.3 billion in 2001, the survey found. While banks’ prevention systems or measures averted 88 percent of the $5.5 billion check fraud attempts, the numbers point to a continuing need for vigilance in the industry.

“Technology makes doing business easier, but it’s a double-edged sword, because it makes it easier for criminals to pursue their own activities,” says Don Dolan, senior vice president of Partnership Solutions and Personal Products for Clarke American. “It’s up to everyone in the industry to continue to push for safeguards against check fraud.”

Clarke American, one of the nation’s largest printers of checks, works continuously to identify points of potential consumer vulnerability, developing processes and technologies that control check manufacturing and improving order tracking to mitigate weaknesses wherever possible.

“Security is built into each of our processes, so financial institutions and their account holders can be confident that every aspect of the service and products we provide has been designed to protect businesses and consumers from check fraud.” says Dolan.

Clarke American’s comprehensive approach to security protects account holders at every step of its processes for check ordering, design, production and delivery.

Check ordering: Clarke American’s AddressNet® verifies the validity of an address entered on an order and auto-formats a label based on U.S. Postal Service guidelines. SecurityNet® enables Clarke American’s customer service professionals to authenticate consumer information when they enter address changes and prevents unauthorized individuals from placing orders.

Design and production: Specialty papers and a variety of indicative design elements prevent copying, scanning, altering and washing checks. EnGarde™ technology, for example, is designed to combat check counterfeiting, duplication and alteration of business checks. It features fugitive inks that reveal attempts at washing, complex 3-D patterns that thwart duplication, microprint authentication, and a watermark, which disappears when the check is copied or scanned.

Delivery: Clarke American’s Automated Packaging Systems (APS) for standard personal orders increases package security with package over-wrapping. Business products are packaged in an outer box and sealed using nylon-reinforced, non-refastenable security tape with extremely durable glue. Removing the tape from the outer corrugated box tears the box fibers, so tampering can easily be seen. In addition to offering account holders well-designed checks produced using cutting-edge technology, financial institutions can encourage their account holders to take the following precautions to protect themselves:

• Order checks from a financial institution. These checks include security features that protect against counterfeiting and alteration. Ordering from outside sources may result in the sale of your personal data to other marketing companies.
• Store checks, deposit tickets, and statements in a secure location. Never leave checkbooks in a vehicle or a public area.
  
• Reconcile account statements promptly and regularly to detect irregularities.
  
• Know the date your check order should arrive in the mail and notify the financial institution if they don’t arrive on time. When the check order arrives, make sure that the seal on the box isn’t broken.
  

Clarke American also encourages account holders to avoid printing driver’s license and Social Security numbers on checks. “It’s a step that can significantly increase the security of their account,” says Dolan.

About Clarke American
Clarke American provides checks and check-related products, contact center services, Internet and direct response marketing solutions for the financial services industry. The company is a recipient of the 2001 Malcolm Baldrige National Quality Award given by the U.S. Department of Commerce. For more information, visit www.clarkeamerican.com.

For information about this press release contact
Cary Corbin
(830) 609-1932
Debbie Talley
(210) 697-1228