Check Fraud Mitigation: A Bank Teller’s Guide to Stop Fraud at the Front Counter

Even as digital banking continues to grow, the teller line remains an important part of daily operations in banks and credit unions. Tellers provide personal service, but they also serve a critical function in fraud prevention. They are often the first point of contact during transactions, which puts them in a strong position to spot suspicious activity.

Many fraud prevention efforts focus on digital channels, and fraudsters are aware of this. As a result, they may view the teller line as an easier target - in fact, in-branch transactions present the largest percentage of check fraud. Without the right training and tools, frontline staff may struggle to identify fake checks or other forms of fraud during in-person transactions.

To protect against these threats, financial institutions need to treat tellers as a key part of their overall fraud mitigation strategy. This includes providing ongoing education, giving them access to verification tools, and encouraging a culture of awareness.

In this blog, we explore how tellers can identify and prevent check fraud, and why their role remains essential in protecting banks and credit unions from financial loss.

A Teller’s Checklist for Check Fraud Mitigation 

Modern technology has made it easier for fraudsters to create convincing fake checks. This means bank tellers need to be especially thorough when reviewing items in person. Key elements to examine include: 

• Check Stock Quality: Check for perforations, paper thickness and security features like watermarks or special inks. Fragile paper or missing security features could indicate a counterfeit check.
• Payee Name Verification: Ensure the payee name matches the entity presenting the check. Be skeptical of generic names or abbreviations.
• Payor Name and Address: Ensure that the issuer’s information is consistent with known details. Unknown payor names and P.O. boxes could be red flags.
• MICR Line: Validate that the codeline is clean, formatted correctly, and properly aligned. Check for unusual fonts, spacing issues, smudged or shiny ink, or bumpy surfaces.
• CAR/LAR Mismatch: Confirm that the courtesy amount (numerical) and legal amount (written) match exactly. Any differences should be alerted immediately.
• Signature Verification: Ensure that the signature on the check matches what is on file. Signature mismatches could indicate forgery.
• Endorsements: Verify the accuracy of the endorser’s signature on the back of the check. Check for signs of forgery or alterations.
• Check Numbers and Dates: Check numbers appear both in the upper right corner and are represented within the MICR codeline - and they must match. Also, be aware of stale-dated and post-dated checks.
• Physical Signs: Be skeptical of checks with different ink colors, difficult to read writing, chemical changes, erasures, and look for fade spots on the paper.

Tellers Need a Fraud-Fighting Ally: Meet Alogent Shield

Alogent’s item processing suite includes Alogent Shield, a comprehensive set of fraud mitigation tools that protect financial institutions 24x7x365. Built for both flexibility and security, Alogent Shield uses real-time monitoring, intelligent detection, and layered defense strategies to stop fraud across every deposit channel:

• Branch and teller lines
• Remote and mobile deposit capture (RDC)
• Self-service options such as ATMs, ITMs, and kiosks
• Lockbox and merchant capture
• Inclearings, returns, and deposit X9 files

Fully integrated within Alogent’s item processing suite, these capabilities help banks and credit unions identify and prevent fraud in real-time, regardless of the point of capture.

Shield Your Institution from Check Fraud Scams

By equipping your front-line staff with cutting-edge check fraud mitigation solutions like Alogent Shield, banks and credit unions can safeguard every deposit channel and reduce fraud-related losses. 

learn more in this eBook: Alogent Shield and the Future of Check Fraud Mitigation

How robust is your fraud strategy? Find out in this checklist

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