Biometric Solution Helps Check Cashing Franchise Reduce Fraud

Considering all of the advanced printing techniques available today, it should surprise nobody that certain unscrupulous people create not only fake checks, but fake ID cards as well. Obviously, when these fake documents are used fraudulently, it costs the rest of us money. According to the San Jose Mercury News, in 1993, the latest year such statistics are available, fake checks alone cost the United States banking industry over $815 million. It is anybody's guess how much it costs us when people use fake IDs.

Verifying The Identity Of The Check Casher
One way to minimize the cashing of bad checks is to require that people cashing a check affix their thumbprints to the back of the check. By doing so, if the check is fraudulent, authorities can learn the check casher's identity by matching the thumbprint of the bad check to thumbprints on file. The problem with such a solution in the past, however, is that people often balked at placing their thumbs on an inkpad, since cleaning it afterward was messy and inconvenient.

Biometric Technology Provides A Solution
Recognizing the problem with inkpads, Identicator developed an inexpensive but effective solution - Touch Signature inkless pads. Identicator, based in Marina Del Ray, CA, was founded in 1971 as a designer, developer, manufacturer and marketer of biometric products, specializing in fingerprints. It has 50 employees. Identicator offers a range of over 50 inkless products for such applications as infant footprinting, applications, and crime scene printing.

No Need For Ink Pads In Fingerprinting Process
With Identicator's Touch Signature, people wishing to cash checks simply touch their thumb to the pad, then place it on the back of the check. A permanent, non-smearing thumbprint appears instantly. The little ink that remains on the thumb is eliminated by rubbing the thumb and index finger together. No cleanup is required, so no ink remover or tissues are needed.

United Check Cashing Uses Inkless Pads In All 70 Of Its Locations
United Check Cashing, based in Philadelphia, is a national franchiser of check cashing centers with 70 locations in eight states. Most of its stores are located in suburban, blue-collar strip malls. Customers use the service primarily for convenience, but sometimes because they don't have bank accounts. Over 90% of the roughly 500 checks cashed each week at a typical store are payroll checks of repeat customers.

Fingerprinting Is A More Secure Form Of Identification
Terry Giancaterino, franchise coordinator for United Check Cashing, commented as follows. "We had never used fingerprinting before. We had only used the classic forms of identification, such as picture ID. We decided to use fingerprinting as a greater deterrent to fraud. Since fingerprints can be stored on a computer, those who know we have the system don't even try to cheat us."

Touch Pads Deter Fraudulent Check Cashing
She added, "We just adhere the pads to the outside of our teller windows and the teller discreetly asks the customer to place his or her thumbprint on the check. If he or she refuses to do so, we don't cash the check." Giancaterino concluded by saying, "Whenever we open a new location, we include the Identicator Touch Signature in the start-up package. We expect to continue using Touch Signature as our franchises grow."