As TROY's Shark Week continues, we're diving deep into an equally treacherous waterscape - the world of real estate fraud. Just like the predators of the ocean, fraudsters lurk beneath the surface, ready to pounce on unsuspecting victims. In this Shark Week blog post, we'll explore the dangers posed by MICR printing without enhanced security features in the real estate industry and how you can protect yourself from becoming their next meal.
The Churning Waters of Non-MICR Printing
If you've ever bought a house or even rented an apartment, you'll know that the closing process requires a large number of documents being shared both electronically and by paper check. Not to mention, large amounts of money. It's enough to make your eyes cross and lose track of what you're even signing, where you've placed documents and checks, and how much money you're handing over.
This convoluted mess is what makes the real estate and construction industry such a prime target for fraud schemes. Markets Insider reported in 2022 that real estate fraud has gone up exponentially in recent years, due to fraud schemes becoming so clever and specific that they fool the most experienced industry professionals. However, there are ways to combat fraud of all different types, especially when it comes to real estate transactions. Paper check fraud might be the easiest to overlook, and also the easiest to fend off through the use of enhanced MICR ink for security.
If you don't know already, MICR, or Magnetic Ink Character Recognition, is a technology used to print checks and financial documents with special magnetic ink. It ensures that bank systems can accurately and efficiently process and read the MICR line, which includes the account and routing information on a check.
The Stealthy Tactics of Fraudsters
While using MICR technology when printing checks and vital records is required by most banks to ensure checks don't have to be manually processed, it doesn't fully protect against fraud. Real estate firms and their clients alike are putting their information at risk of being frauded, like swimming in shark-infested waters. While wire fraud is popular among fraudsters, old school strategies like counterfeiting and check washing are still very much at play:
- Check Washing: Fraudsters can easily alter the check's recipient, amount, or even the MICR line itself, leading to significant financial losses for unsuspecting victims.
- Counterfeit Checks: Counterfeit checks include any checks that have been created fraudulently with the purpose of stealing money from someone. In some cases, all the information on the check is fake, but in other situations, scam artists create counterfeit checks using real account and routing numbers.
- Additional Charges: Non-MICR printed checks can lead to errors in record-keeping because they are not machine-readable, making it difficult to track and authenticate transactions. This confusion opens doors for fraudsters to manipulate information and perpetrate their schemes.
Navigating the Shark-Infested Waters: Protecting Yourself
At TROY, we are committed to helping your business navigate the waters of fraud through our products and education. Through exploring TROY's offerings, real estate firms and industries of all kinds can expand their knowledge of all the ways in which fraud can occur and solutions they can implement to prevent it.
- Secure Printing Practices: If you're involved in real estate transactions, work with reputable printing services that understand the significance of MICR encoding on checks. Ensure that all checks are printed using the correct and most updated technology.
- Use Secure Payment Methods with TROY: TROY Group offers a variety of secure payment methods, including MICR printers and MICR Toner Secure, our patented toner solution that releases a red dye when any kind of check washing is attempted.
Just as the oceans hold hidden dangers during Shark Week, the real estate industry is plagued by unseen threats. By staying informed, practicing caution, and advocating for secure printing practices, you can navigate these treacherous waters with confidence. Remember, in both the ocean and the world of real estate, knowledge is your strongest defense against predators. So, arm yourself with information and keep your financial waters clear of fraudsters seeking to take a bite out of your hard-earned money.
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