Identifying Counterfeit Travelers Cheques

Authorities recently arrested two Texas residents in connection with a counterfeit travelers cheque scheme in Meridian, Mississippi.  The couple was caught after several complaints were received from local businesses stating the couple was attempting to cash $100 counterfeit travelers cheques.  Luckily, these businesses knew how to identify fake travelers cheques and protect themselves and others from fraud.  Here are some important tips to remember when validating a travelers cheque:

Security Features

Travelers cheques have embedded security features to help merchants validate their authenticity.  These security features will be consistent with each cheque.  If there is any doubt regarding a security feature, ask for an alternative payment.  Security features include:  Watermarks, engraved printing, background pattern, quality paper, security inks, and holographic threads.

Watermarks

Look for a watermark (translucent image) on the front side of the travelers cheque.  The watermark is easily seen when lifted to the light.  Watermarks may change or differ depending upon the brand of cheque being presented.  Keep up to date on watermark changes.  If there are no watermarks or the watermark appears on the back of the cheque the cheque may be counterfeit.

Engraved Printing

True travelers cheque will have engraved printing.  The printing will have a raised texture when you run your fingers over it.  Engraved features include the primary denominator of the cheque, cheque’s portrait, and the cheque’s border.

Background Pattern

Look at the background pattern of the cheque closely for consistency and detail.  Cheques that have been tampered with may have missing or smudged background patterns.

Paper

Authentic travelers cheques are made of quality paper comparable to currency.  Feel the paper; if it feels smoother or thicker than currency it may be counterfeit.

Security Inks

Security Inks are used on all travelers cheques to alert merchants and banks of attempted alterations.  Attempted alterations on the signature or countersignature areas will produce background micro printing that is smudged or missing.

Holographic Thread

Look at the holographic thread on the cheque.  It should have a silver, metallic thread that appears shiny.  Counterfeit cheques may have no thread and/or appear dull.

Signature Features

The signature only convenience of travelers cheques makes them a popular choice among travelers: It also opens up a window of counterfeit opportunity for criminals.  Look closely at the signature area, issued signature, and counter signature.

Signature Area

The signature area should not appear brownish or have the background pattern missing.  Counterfeit cheques may have undergone a “chemical wash” to have the original signature removed.

Issued Signature

Each travelers cheque should have a signature in the upper-right hand corner of the cheque.  This signature was signed at the time the cheque was issued and should be used to compare the countersignature.  There are some traveler’s cheques that contain dual signatures to be compared to the countersignature.  Beware of cheques that do not have issued signatures.

Countersignature

The countersignature is signed on the bottom left-hand side of the cheque.  Compare the countersignature to the issued signature carefully.  If the two signatures don’t match have the endorser re-sign on the back of the cheque and ask for identification.  If the cheque already has a countersignature, ask the endorser to re-sign on the back of the cheque.

Amount of Cheque

Ensure that the cheque amount being presented is a typical amount for your business.  If there are any concerns regarding the amount of the cheque or the number of cheques being presented contact the cheque verification toll-free number for verification and more information.

Counterfeit travelers cheques are a real concern for consumers and merchants alike.  Criminals are coming up with clever ways to produce counterfeit cheques that look almost identical to the real thing.  Protect yourself and your business by looking closely at the cheque security and signature features.  If there are any concerns regarding cheques validity call the cheques verification number for instructions or ask for an alternative payment.  Always report any suspicious cheque activity to the authorities; you may help bring an end to a counterfeit cheque scheme.