Pub. 5 2016 Issue 1

some instances involving large forged checks or check kiting activity, bank employees have personally returned the check to a neighboring bank the following day to take advantage of Reg CC 229.30(c). Make sure you return the check to the proper location. In one case, a bank made the expedited return to the main bank, driving past the bank’s processing center to get there. Because the check in that case was required to be returned to the processing center, the expedited return failed and the drawee bank suffered the loss. Your bank can also take action to avoid becoming the payor bank in this scenario. Thirty years ago, banks signature-filed all checks and could detect forgeries. Today, few banks, if any, look at the signatures on all checks. Crooks realize this, and have become bolder. They create fictitious checks on which the issuer’s name is not remotely related to the account number. In combating this issue, some banks have found that examining only checks above $5,000 does not result in a large processing expense for the bank. Other banks have chosen limits of $25,000. The expense of looking at a low volume of large checks each day can be offset by the prevention of one large forged check. By understanding the Midnight Dead- line and examining large dollar checks, you can reduce your bank’s exposure to losses from checks with forged makers’ signatures. Brought to you by: Chuck M. Towle and the KBS Editorial Team To help protect your bottom line, call KBS to discuss this article and other loss prevention topics or products (785) 228- 0000 Access more KBS Security Officer’s By-Word’s at: kbsforbanks.com /resources SUBSCRIBE FOR ENHANCED KBS CONTENT: http://tinyurl.com/kbssubscribe Connect with us on social media: twitter.com/kbsforbanks linkedin.com/company/kbsforbanks The expense of looking at a low volume of large checks each day can be offset by the prevention of one large forged check. “ “