Thumbprint Signature Program

PUTS A "MARK" ON CHECK FRAUD

The KBA's Thumbprint Signature Program, currently being utilized by over 200 banks and nearly 60 retailers, seeks to address a growing problem with check fraud being experienced by Kansas banks and their customers. Nationally, financial institutions lost $615 million to check fraud in 1995, according to reports from the Federal Reserve Board.

This program is quite simple: participating banks require the fingerprinting of all non-account holders requesting check cashing services. Customers maintaining accounts with participating banks will not be impacted. Non-account holders will be requested to apply their right thumb to an "ink-less" fingerprinting pad that does not stain fingers, but does leave a good quality print. The Thumbprint Signature will be placed on the face of the check between the memo line and signature line.

The Thumbprint Signature is put to use only if the check proves to be fraudulent. In those cases, it will be used by law enforcement officials to aid in apprehending those responsible. Many Kansas law enforcement agencies have expressed their enthusiasm for the program.

The program, which acts as a significant crime deterrent, also has the support of the Kansas Bureau of Investigation (KBI) and Attorney General Carla Stovall. "Not only will this program have a deterrent effect on these types of criminal activities," she said, "it will also aid in the reduction of costs that are incurred by financial institutions and in turn passed on to the customers. I am pleased to support such an endeavor."

About thirty states are currently using the Thumbprint Signature Program, including the four states that border Kansas, and the drop in fraud losses in many of the states has been overwhelming--Texas reports decreases from 54% to 77% in non-customer check fraud.

The Kansas Bankers Association encourages all financial institutions and retailers to get involved in the Thumbprint Signature Program. We believe this can be a tremendous detriment to fraud if banks universally participate. We also urge banks to encourage local retailers to become involved. If banks and retailers enthusiastically sign on to the program, the savings to businesses and consumers, as well as to law enforcement, will be spectacular.

Contact Becky Iams at the KBA (785/232-3444 or biams@ksbankers.com) today to learn more about implementing the Thumbprint Signature Program in your bank or business.