The Federal Trade Commission, the nation’s consumer protection agency, states that counterfeit check scams are on the rise. Some fake checks look so real that bank tellers are reporting being fooled. The scammers use high quality printers and scanners to make the checks look real. Some of the checks contain authentic-looking watermarks. These counterfeit checks are printed with the names and addresses of legitimate financial institutions.  And even though the bank and account and routing numbers listed on a counterfeit check may be real, the check still can be a fake. These fakes come in many forms, from cashier’s checks and money orders to corporate and personal checks.

 

A teller must be fast, efficient, competent and well-versed in money, monetary transactions and financial instruments. The teller must be sufficiently worldly-wise to cope with the professional "paperhanger" who makes a comfortable living by defrauding financial institutions and merchants out of hundreds of millions of dollars annually. There is no substitute for experience in the teller's arsenal of defense weapons, but until that experience has been acquired and carefully developed, intelligent training methods must fill the gap.

 

$ $ $ $ $ $
The teller treats a check to be cashed or accepted for deposit
like a thermometer – the higher the amount the hotter the deal.
Practicing prudent risk management practices is essential at the teller window!
$ $ $ $ $ $

 

A scammer's goal is to become your customer.   Once an accountholder, the thief can wait patiently (typically months not years) to deposit fake checks into their account and then move the money before the bank is on to them.  Once an accountholder defrauds the bank they move on so the likelihood of collection is extremely low.

 

Decision making on the teller line around checks that are acceptable to cash or take for deposit is complex.  Here are critical questions and concerns to ponder:

 

Who is this customer?

• How long have they been my customer?
• What is their average balance?
• How much is in their account?
• How have they managed the account – NSFs?
• Would the bank loan this amount of money to this customer unsecured for ten days?
• Don’t be lulled into feeling comfortable by placing a REG CC hold. Whenever the character of the presenter is unknown or questionable or when the amount exceeds the customer’s “credit history” a routine REG CC hold will not offer enough protection.   A hold is never a solution for potential or probable fraud.  Never use a hold when the amount is excessive.  Those items must be sent for collection or the presenter can take the check to the financial institution it is drawn on.

Still Learning,
Honey Shelton

Eight Principles that Count at the Teller Window

Every teller has a personal interest in cash-handling procedures and should be certain cash-related  policy is meticulously obeyed.  Cash limits vary from institution to institution and even from one teller to another, depending on the teller's specific responsibilities.  Limits can also vary from day to day, depending upon your cash needs. 

 

1. Large bulk-cash deposits should be removed from the teller window as soon as possible.  Similarly, prepared change orders should not be kept at the teller window awaiting pickup. It is tempting fate to use teller windows as temporary storage space for large sums of money.  The teller's coin vault could be used for safe temporary storage during the day.
2. Each teller is responsible for the currency and coin supply assigned to him/her.  Tellers also are charged with the responsibility of accepting money from--and paying money to--their customers.
3. Financial institution tellers are the constant target of thieves, swindlers, and con artists.  This is true of almost all phases of teller activity.  Teller training must go beyond the basics of counting money and making change.  Learning how swindlers cheat  tellers is an essential part of the training.  This requires continuous, on-going teller training.  Professional crooks are clever and resourceful.  They are well acquainted with internal procedures, and constantly invent new deceptive tactics.  Management must understand that a "new" teller steps up to the window and enters the world of major-league fraud.
4. The teller's responsibility for handling money begins before the teller window is opened and extends up to the point of balancing and turning in the cash supply at the end of the day.  During that time thousands of dollars are handled--money set up in the drawer, taken in from and paid out to depositors and customers, or transferred within the institution.
5. If interrupted during counting, stop and start again.  It's better to take the extra minute than to shortchange or overpay someone.
6. Avoid making unnecessary conversation when counting.  This discipline enables the teller to stay focused and avoid being distracted during the counting steps.
7. Ask customers to count large amounts of cash before they leave the window.  As an added precaution, follow procedures for having customers sign for large amounts of cash, to indicate receipt of the money.
8. By handling currency and coin in a consistent and professional manner, the work is simplified and the chance of error is reduced.  Equally important, tellers develop the skill to concentrate on both the transaction and the customer.

Pay the teller the respect they are due, smile when you see them and provide them training and coaching routinely!

Still learning,

Honey