What Is Shield Protection on Checks?

Despite the rise of digital transactions, paper checks remain a common payment method, making them a target for fraud. Check fraud attempts increased by over 100% in 2022, according to the Bank Administration Institute. “Shield protection” refers to a comprehensive array of security features designed to prevent various forms of fraud, safeguarding financial transactions. These safeguards make checks difficult to reproduce or alter without detection.

Understanding Shield Protection

“Shield protection” is a multi-layered approach to check design, integrating various safeguards against fraud. It combines techniques to deter illicit activities like counterfeiting, alteration, and forgery. This protection aims to counteract common types of check fraud, such as chemical alteration, counterfeiting, forgery, and check washing. The layered security design ensures that even if one protection method is compromised, others remain to expose the fraudulent attempt.

Common Security Features on Checks

Modern checks incorporate various physical and printing techniques to enhance their security. These features collectively contribute to a check’s “shield protection.” Each component combats specific fraud methods, deterring or revealing fraudulent activity.

Microprinting

Microprinting involves printing extremely tiny text or patterns in areas that appear as solid lines. When photocopied or scanned, these minute details often become distorted, blurred, or appear as a solid line, indicating a counterfeit. Microprinting can be found on signature lines, borders, or the endorsement line on the back of checks.

Chemical Alteration Protection

Chemical alteration protection involves treating check paper with compounds that react visibly to chemical solvents. If a fraudster attempts to “wash” a check to remove ink, the treated paper will show stains, spots, or discoloration, typically appearing as dark brown or black marks. This makes tampering evident.

Watermarks

Watermarks are subtle images or patterns embedded within the paper during manufacturing. They are integral to the paper itself, making them difficult to replicate with standard printing or scanning equipment. When held up to a light source, a true watermark becomes visible, often displaying a specific design or text.

Security Threads

Security threads are thin strips, often made of metal foil or plastic, woven into the paper stock. Embedded within the paper fibers, they can be fully visible or appear to weave in and out when held to light. Some security threads may contain microprinting or fluoresce under ultraviolet light, adding another layer of authentication.

Void Pantographs

Void pantographs or warning bands are patterns or words, such as “VOID” or “COPY,” hidden in the check’s background. They become visible only when the check is photocopied or scanned. This anti-copy technology prevents accurate reproduction of the check’s original appearance, signaling that the document is a copy.

Fibers

Fibers, both visible and invisible (fluorescent), are embedded into the paper stock during manufacturing. Visible fibers are randomly dispersed colored threads. Invisible fluorescent fibers are only discernible under ultraviolet (UV) light, where they glow in various colors, providing a covert security feature.

Unique or Consecutive Numbering

Unique or consecutive numbering is a simple yet effective security measure. Checks typically have sequential numbering printed in the upper-right corner and on the Magnetic Ink Character Recognition (MICR) line. Consistent numbering helps track checks and identify discrepancies, making it harder to insert fraudulent checks.

Magnetic Ink Character Recognition (MICR) Line

The Magnetic Ink Character Recognition (MICR) line is located at the bottom of the check. It contains the bank routing number, account number, and check number, printed using specialized magnetic ink and a unique font. Machines can read this information even if obscured by stamps or signatures. The magnetic properties of the ink make the MICR line difficult to replicate accurately, defending against forgery and alteration.

Verifying Check Security

To confirm a check’s authenticity, visually and tactilely inspect its security features. Knowing what to look for can significantly reduce the risk of accepting a fraudulent document.

To check for watermarks and security threads, hold the check up to a light source. A genuine watermark will appear as a faint, embedded image or pattern, often visible from both sides. Security threads will appear as a solid or dashed line embedded within the paper, and some may glow under UV light.

Microprinting can be examined using a magnifying glass. Look closely at areas like the signature line, borders, or the endorsement area on the back. What appears as a solid line to the naked eye should reveal tiny, legible text under magnification. Blurry, broken, or solid lines may indicate a copy.

To assess chemical alteration protection, inspect the check for unusual discoloration, stains, or inconsistencies in the paper’s color, particularly around the payee and amount fields. A genuine check’s paper should show a reaction if altered with chemicals. Feeling the paper for texture inconsistencies or raised elements can also provide clues.

Look for void pantographs or warning bands on the check. Some checks include a security padlock icon, indicating multiple security features. While a void pantograph typically appears only when copied, some warning bands might list the security features present, encouraging verification.

Finally, examine the unique numbering and the MICR line at the bottom of the check. The check number in the upper right should match the one on the MICR line. MICR line characters should be crisp and uniformly printed, as they are created with specialized magnetic ink. Inconsistent numbering, altered fonts, or smudged magnetic ink could be red flags.