How Come Banks Can't Tell Whether a Check is Counterfeit?

Question

Sorry, this is two questions in one: 1) why can't banks tell whether a check is counterfeit before they cash it 2) why credit cards don't place a person's photo on them, Like a State ID or something to protect from someone using it?

Answer 1

A bank can absolutely find out if a cheque is counterfeit before they cash it -- they just have to want to take the time to find out (I work on a Banking Floor, myself, so I have first-hand experience with this).

First of all, they can call the payor (the individual or company that issued the cheque). If the payor knows nothing about the cheque, then it's not legitimate! If they didn't issue it, then the signature on the bottom of the cheque is forged, and the bank won't accept it for negotiation.

Second of all, they can take a real good look at the cheque itself. Counterfeiters are usually in a hurry, even the good ones. I'm not going to go into too much detail about how you can spot one, but the vast majority of counterfeited cheques are easy to spot, if you know what you are looking for and take the time to look. There are some that are just really, really good, however, and that's where speaking to the payor comes in handy.

To do research and fully examine every single cheque that crosses the teller line, though, is time consuming, and would make a lot of customers mad. Many people don't like having their business questioned, and others would just be angry about the wait. That's why it's not done all time, but typically only when something about the cheque or the transaction raises flags for the teller.

As to why many places don't put photos on credit cards, the other answerers are correct -- it wouldn't help a whole lot. The scammer can still perform telephone and internet transactions with no problem.

Hope that answers your questions!

Answer 2

First off, banks are a little more savvy than you'd think. For example, the MICR numbers (the funny font across the bottom of the check) are printed with special ink and if they aren't registered by the scanner, that will raise flags. What I think you are asking is why can't a bank tell if there are no funds in an account before processing the check. This is due to delays in the ACH (Automated Clearing House). Many banks only process checks once a day, so by the time a clearance comes through they may have already cashed a check. This is why most banks have hold periods before cashing a check. Finally, it is possible to cash a "fake" check by adultering a real form. This is of course a crime and it may be a matter that an inattentive teller misses clues from the check.

Answer 3

A bank teller has a lot of training in spotting phony checks, but counterfeiters are good and tellers can't catch everything. Now a days counterfeiters have access to the equipment needed to make checks look good. They even use legitimate routing numbers and sometimes even account numbers so that it is impossible to tell the check isn't good until it is returned by the bank it is supposedly drawn off of.

Photos aren't on credit cards because now a days 9 times out of 10 you aren't actually handing your card over, so it would be a waste of money for card issuers to include it and it would delay the issuance of cards!

Answer 4

Photos on credit cards could be a good idea, although with so many purchases being made online, wouldn't help there. A couple years back I got a notice from someplace, Citibank I think, that I had the option of having a photo on my credit card.

It could be a hassle both for the credit card holder and for the credit card company to put photos on the cards.

Answer 5

Question 2: Most scammers order through phone and internet. Who wants to get caught in the store.

Question 1: It is very difficult to recognize professionally made counterfeit check.

Answer 6

Some credit cards do have your photo on them now, but they're mostly dual-purpose cards. (For example, a Costco-branded AMEX has your picture and serves as your Costco membership card as well as a credit card)