NEW YORK (CNN/Money) -
If you typically file your bank statement without even giving it a cursory glance, maybe it's time to give it a good read-through.
Using only your bank account and routing numbers, criminals can print checks that can be cashed with your funds. Lost or stolen checks are still a boon for not-so enterprising thieves, but you shouldn't wait for something bad to happen before you take action.
The FBI says check fraud accounts for 40 percent of the suspicious activity reports (SARs) they received from banks from April 1996 to September 2003, the latest figures available. The total cost to the economy equals $8 billion in losses.
Banks only file SARs for transactions valued at $5,000 or more, so those figures may understate the problem. And federal agencies, of course, don't compile statistics that can account for the frustration incurred by individuals affected by check fraud.
If you're absolutely sure it can't happen to you, there's no need to worry. But if you don't believe in sure things here's what you can do to protect yourself and your money.
Your money and you
Read, read, read. If you haven't been reading your statements, it's time to get curl up and get cozy with those ledgers.
"You need to read your monthly checking statement and check it for fraudulent usage," said John Hall, a spokesman at the American Banker's Association. "I can't say it enough because people don't."
Write a report. Notify your bank immediately if you spot any suspect charges. You may have as little as 30 days since your statement was mailed to dispute a fraudulent charge -- all the more reason to check your statements on a regular basis.
You'll receive a provisional credit during the bank's investigation. If they find you are a victim of check fraud your account will be credited accordingly.
Don't litter. Hall says few people guard their banking numbers as zealously as their credit card numbers. Be one of those people.
Tear or shred old statements, deposit slips, and ATM receipts. Merchant receipts that bear even a truncated debit or account number should also be disposed of with care.
Even in the age of digital technology, some thieves still use low-tech methods such as "dumpster diving" to get your valuable account information. So tossing an old bank statement in the garbage is an invitation to be swindled.
Take stock. Invest in high-quality check stock and buy checks that have at least eight safety features as thieves can't easily alter those checks.
Ben Berry, a supervisory special agent in the white collar crime unit at the FBI's New York branch, says that microprints and watermarks are two good options.
Microprints are legible only under magnification and thus look like a solid line when viewed by the naked eye. If you are not familiar with microprinting, take a look at the new $20 which has a microprint script running along the left-hand side. Watermarks, on the other hand, are symbols or text that are visible under light.
Microprints and watermarking can be expensive, making them options reserved for business checks.
Some other popular security features, according to "Check Fraud and Identity Theft" written by former check forger Frank Abagnale, include multi-chemical reactive papers that produce a stain or the word "void" when activated by ink eradicator chemicals, evenly-spaced laid lines that make it hard to cut and paste dollar amounts on checks without raising suspicion, and high-resolution borders that cannot be easily photocopied.
Check's in the mail. If you live in a house, raising that red flag on your mailbox not only notifies the mailman there's something in the box, it also alerts local looters that there may be an opportunity to fish for checks.
Many apartment and condo buildings have a locked drop box for mail. If your building doesn't have one, or similar tamper-proof mail deposit box, exercise caution in leaving your mail there.
Even if it adds a few extra minutes to your commute, mailing bills from a nearby post office may save you a few headaches down the line.
Final don'ts. Don't write your social security number or driver's license number on your checks. Merchants don't need either number to cash your check.
Some stores may ask to see your driver's license or require that you furnish it if you want to pay by check, but only give it to them upon request. An identity thief can easily get a fake driver's license using your numbers. Don't make it easy for them.
Don't give anyone who calls your checking account number. For all you know the person on the other end of the line claiming to be a customer service representative may be calling from the county jail. If someone calls saying there's a problem with your account, look up the company's number on your own and call them back.
Don't carry your checkbook unless you need it. Think about it, the more you carry your checkbook the greater your chances of losing it. So you and your money are safer leaving it at home.
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