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General Information
Financial institutions around the country have been using a new security device known as the Thumbprint Signature touch pad. The touch pad is intended to deter counterfeit and stolen check fraud by obtaining a Thumbprint Signature (fingerprint) from non-customers (customers who do not have a depository relationship with the institution) when cashing both on-us and not-on-us checks. The Thumbprint Signature can be used by law enforcement agencies in the investigation of fraud claims made by account holders, and financial institution's usage of the program is a natural deterrent. Participants will not retain the Thumbprint Signature in their files and the signature will be shared with law enforcement officials only in cases of suspected fraud.
Reaction of Law Enforcement Authorities and Financial Institutions' Regulators: Details of the Thumbprint Signature program have been shared with the FBI, many local law enforcement authorities, and the financial institutions' regulatory agencies, and the program has received widespread support from these and other groups.
Program Identification, Customer Awareness and Collateral Materials: A Thumbprint Signature logo has been developed and generic customer information materials are available from us in making customers and non-customers aware of an institution's participation in the program. It is recommended that participants use a Thumbprint Signature decal on all entrances to the financial institutions' facilities. Security professionals believe this early visibility of the program will act as a significant deterrent. Camera-ready materials are available (additional cost may be incurred) for institutions wishing to customize the materials with their own names and logos. Camera-ready art or generic materials may be purchased from ASI, 489 Congress Street, Portland, ME 04101-3430, telephone (207) 791-8400.
Touch Pad Description: The touch pad is a two-inch inkless fingerprinting device that leaves no residue on the finger. Users simply rub their fingers together and the remaining ink disappears. The touch paid is not the same as an inkpad and will not leave ink on a user's finger or clothing.
How The Touch Pad Works: The presenter of the check presses the thumb of his or her right hand on the pad and places the impression of a finger on the face of the check between the memo and signature lines. If the presenter is disabled and cannot use his or her right thumb, an impression of the left thumb is placed on the check and noted "left hand" on the check next to the thumbprint. Should both thumbs be disabled, an impression of the right index finger is taken and "right index finger" is noted next to the print. The Thumbprint Signature should not be used in place of customary I.D., but should be recorded in addition to customary I.D.
How To Obtain Thumbprint Signature Pads: ASI has arranged for a group purchase of Thumbprint Signature pads. All participating Maine financial institutions must place their orders through ASI. The warehouse will be handled by Texas cost prohibitive.
NOTIFYING CUSTOMERS ABOUT THE PROGRAM
Customer Awareness and Collateral Materials
Statement stuffers, decals and lobby information cards are available for purchase through the Association. Security professionals believe this early visibility of the program will act as a significant deterrent.
Notification To Business/Commercial Customers
It is recommended that all participating financial institutions write to their business/commercial customers at least two weeks prior to implementing the Thumbprint Signature program. Letters and/or follow-up telephone calls should encourage these customers to notify their employees that a Thumbprint Signature will be required if the employees are not depository customers of the institution. Notification of the program is a courtesy to business/commercial customers and will assist in the process of making the policy known to larger numbers of non-customers who may seek to cash checks.
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Sample Procedures for Obtaining a Thumbprint Signature
When To Obtain A Thumbprint Signature
A Thumbprint Signature should be obtained when:
- a non-customer presents an on-us or not-on-us check for encashment. This includes employees of commercial or business account customers who present payroll checks drawn on the participating institution.
- a non-customer presents an on-us check for exchange to a cashier's check.
- a non-customer presents a government check for encashment.
NOTE: To comply with all applicable federal laws and regulations, a
Thumbprint Signature should be obtained from every non-customer every
time a check is presented for payment. Distinctions should not be made
based on appearance or suspicious versus non-suspicious circumstances.
Financial institutions in rural markets may want to develop a specific
policy requiring a Thumbprint Signature only from non-residents of the
community or county, but it is important to apply equal treatment to
all non-customers once a policy is adopted.
Use of The Program In Drive-In Facilities
It is recommended that non-customers seeking to cash checks be required to enter the premises to complete their transaction to affix their Thumbprint Signature to the face of the check. Some participants may elect to adopt policies providing for the use of Thumbprint Signature pads in drive-in facilities and others may elect to permit non-customers to cash checks through drive-in facilities only after normal financial institution hours.
Steps To Use When Obtaining A Thumbprint Signature
Tellers and other personnel should use the following procedures to obtain a presenter's Thumbprint Signature.
Step 1: Obtain required identification from the presenter.
Step 2: Explain the following to the presenter:
"In order to protect the financial institution's depositors, we require a Thumbprint Signature on the face of the check. The touch pad is not like an inkpad and will not stain hands or clothes. Our financial institution has joined other Maine financial institutions in implementing this program to eliminate check fraud."
If necessary, demonstrate the use of the pad by obtaining your own fingerprint. Rub your index finger with your thumb to show the material quickly disappears.
If the presenter refuses to provide the Thumbprint Signature, return the check to the presenter and explain the financial institution will not cash the check.
Step 3: Request the Thumbprint Signature by stating the following:
"Please press your right thumb on this pad and then press the finger onto the check - right here (pointing to the area of the check between the memo and signature lines)."
Obtain the presenter's Thumbprint Signature between the memo line and
signature line. If this is not possible, select a clear place on the
face of the check away from all writing and printed information.
If the presenter "drags" their finger, request the Thumbprint Signature again and instruct the presenter to place the signature in a clear spot on the check.
Step 4: Record the identification information on the check and return the identification to the presenter.
Step 5: Process the transaction utilizing normal operating procedures.
Suspicious Activity
If the presenter leaves the branch abruptly, and leaves the identification or the check, immediately contact a supervisor or your security personnel. Tellers should document the time and date of the transaction and the presenter's description. Tellers and officers should follow established documentation and reporting procedures regarding known or suspected fraudulent transactions.
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Media Questions and Answers
We have and will continue to issue periodic statewide news releases to update both the media and the public on the continued success of Thumbprint Signature. The program received widespread national recognition in October 1996 when CBS This Morning ran a very positive lead story highlighting the program. Please call our office if you would like to view a copy of the video. Participating financial institutions may elect to issue a local news release announcing their participation. If they are not already familiar with the program, local law enforcement agencies should be briefed so they can be supportive if contacted by the media for comment.
Media Response Information Sheet
Q. Isn't this program an invasion of privacy for financial institution customers?
A. This program will not impact the financial institution's account holders. Thumbprint Signatures will be required from non-account holders only and the thumbprint is voluntary. Consumers may decline to submit their thumbprint in which case the financial institution will refuse to cash the check.
Q. What will financial institutions do with the thumbprints?
A. Participating financial institutions will not maintain files
of the thumbprints collected from consumers. The check will be processed
like all other checks and the thumbprint will be used only in those
cases where fraud is evident. In these cases, the check carrying the
thumbprint will be turned over to law enforcement agencies.
Q. Why should financial institution customers support this program?
A. Customers maintaining accounts with the financial institution
will not be impacted unless their financial institution accounts become
a vehicle for criminals to commit check fraud. When this happens, it's
often necessary to close the account and open a new account – a
process that presents an unfair burden to the innocent customer.
Check fraud is like insurance fraud. Fraud losses impact the cost of doing business and honest customers ultimately pay the price. This is an effort to halt the criminal element, reduce losses, and benefit both financial institution customers and their financial institutions.
Q. Is it legal for financial institutions to require Thumbprint Signatures from customers?
A. This program has been endorsed by the FBI and has been reviewed by financial institution regulatory agencies. None of the responding financial institution regulatory agencies were critical of the program.
It's also important to note that customers may decline to offer their thumbprint when requested to do so. In those cases, the financial institution will decline to cash the check.
Q. May the Thumbprint Signature be required on government checks?
A. Yes, there is no prohibition on requiring the thumbprint on government checks.
Q. Fingerprinting and the ink used in fingerprinting is messy. How are financial institutions going to deal with this mess?
A. The Thumbprint Signature program utilizes an inkless fingerprinting technology that leaves no residue on one's fingers. Simply stated, no mess is created.
Q. What will customers who refuse to be fingerprinted do to cash their checks?
A. Every consumer should have a checking account to transact routine business. Our financial institution would be pleased to open an affordable account for those interested in doing so. In most cases, fees charged for a checking account will be much lower than using commercial check cashing outlets.
Q. Isn't this a program aimed at ethnic minorities or low-income members of the community?
A. No. Operating procedures developed provide for uniform application of the Thumbprint Signature
program. Participating financial institutions require a thumbprint from all non-account holders regardless of race or income level.
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Press Release for Media Outlets
FOR IMMEDIATE RELEASE
September 5, 2002
MAINE FINANCIAL INSTITUTIONS ANNOUNCE CUSTOMER PROTECTION ANTI-FRAUD PROGRAM
The Maine Association of Community Banks (MACB) announced today the implementation of a statewide effort aimed at reducing check fraud and protecting financial institution customers.
In October, several financial institutions throughout the state will initiate an inkless print signature program to be used whenever non-customers of the financial institution request check cashing services. In addition to being asked for the standard forms of identification, the individual presenting the check to be cashed will be asked to add their print signature to the check.
President Bush signed the USA PATRIOT Act in response to the events
of September 11th and the War On Terrorism. This new act has regulations
for financial institutions insure they verify the identity of customers
they are doing business with. The new act does recognize biometrics
(i.e. thumb printing) as a valid way to identify customers opening accounts
at financial institutions.
A national fingerprinting program is already in place in several states and is used in Maine by several financial institutions. The Thumbprint Signature Program, begun in Texas in 1995, is a system for obtaining a thumbprint from non-customers when cashing checks. The Texas Bankers Association initiated the thumbprint program after pilot programs in Arizona and Nevada were found to be significantly helpful in decreasing check fraud. In the first two years of the Texas program's existence, a test group of participating financial institutions experienced an average 63 percent reduction in fraudulent checks passed by non-customers.
Colette Mooney, Deputy Superintendent of the Maine Bureau of Financial Institutions that the program should complement fraud detection systems already in place and should not be used "as the only means to stop fraudulent check cashing activities." The national program makes it clear that individuals are also required to provide identification when cashing the check. The thumbprint is not a substitute for that. Mooney emphasizes the need to give the public advance disclosure about thumb printing. She suggests that "lobby signs and printed flyers should inform non-customers of the program before they get to the front of the teller line." The Thumbprint Signature Program offered by ASI includes training material, lobby signs and printed material for customers.
The program has received widespread support from the FBI and local law enforcement agencies across the country. The Maine Chiefs of Police Association has given a Maine financial institution their support for the program. Bob Schwartz of the Maine Chiefs of Police Association says: "We endorsed it because police frequently deal with bad checks, and we end up chasing these people. We support anything that will help apprehend them. Both the financial institutions and its customers stand to gain from this program. Robbery victims should applaud this program, which could help them identify the culprit who stole their checkbook and started forging checks. In addition, check fraud losses add to the cost of doing business, and honest customers ultimately pay the price. In doing anything of this type, it's a good idea to do a public relations program on your own customers, says Bob Schwartz. They'll understand it, and they'll be your best PR."
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Order Form for Suppliers
MFITSP
THUMBPRINT SIGNATURE PROGRAM
All items listed below feature the Thumbprint Signature logo printed in red and black. Statement stuffers are printed in English (other languages are available).
Touch Pads - the pads have a shelf life of 18 months or a minimum of 400 impressions. Banks should order enough for all tellers and drive-through staff.
Teller Window Displays - banks should post these 6" x 3" "tent-style" display signs at all teller windows as an additional reminder that they participate in the program. The signs read "For the protection of our customers, Thumbprint Signatures will be obtained from all non-account holders seeking to cash checks."
Statement Stuffers - these 3.5" x 7.5" brochures explain the mechanics of the program. Banks should send them as a public service announcement to all account holders and have plenty available for anyone who might have questions about the program. Please order in increments of 500.
Decals - banks should post decals at all entrances to let people know they are participating in the program and to warn potential criminals that their crimes will not go undetected. They may also want to post decals in their drive-through stations.
Click here for a Printable Order Form (Microsoft word document)
to Save, right-click on the link and select "Save Target As".
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