Device shines light on fraud.

Byline: ED RUSSO The Register-Guard

A small device resembling a kitchen appliance more than a crime-fighting tool is helping Wells Fargo detect fraud.

Branches throughout Oregon and other states are getting the devices so tellers can detect counterfeit money, bogus checks and fake credit cards.

Using ultraviolet light, the devices reveal hidden-to-the-eye insignias printed inside paper currency and checks, or images imbedded in plastic credit and debit cards, even driver's licenses.

The first device in a Lane County Wells Fargo branch showed up a couple of months ago in Cottage Grove.

The other Eugene-Springfield area branches should have them by the end of June, said Verg Fletcher, area district manager.

Wells Fargo won't reveal how many con artists have been foiled by the technology, but officials say the machines are effective.

For example, if an authentic $20 bill is placed in the device, the ultraviolet light reveals a lime-colored vertical strip not found in counterfeit money.

A check or a debit or credit card under the light might show letters or an image put there by the maker to verify its authenticity.

Experts figure that forgers aren't sophisticated enough to include these features.

The devices have yet to lead to arrests at Wells Fargo branches, but bank officials say people attempting to pass phony money or checks have left after bank employees raised questions.

"It's working," said Fletcher, who is in charge of 14 Wells Fargo branches between Corvallis and Cottage Grove.

Fraud at banks and other businesses result in about $15 billion a year in losses, according to the American Bankers Association.

Such losses end up costing bank customers with everything from higher fees to less spending on staff and capital improvements, said Tom Unger, a Portland-based Wells Fargo spokesman.

The widespread availability of desktop publishing, ink-erasing chemicals and high-resolution color copiers have made it easier than ever for crooks to print fraudulent checks and produce counterfeit currency, bank officials said.

The U.S. Secret Service said about $300,000 in counterfeit currency is confiscated in Oregon each year, Unger said.

Bogus checks are a bigger problem, he said.

A con artist might open a checking account and later - with a phony check - make a big deposit in hopes of withdrawing a large amount of cash.

Wells Fargo banks largely rely on the intuition of tellers and managers to spot counterfeit bills and doctored checks, Fletcher said.

But this does not always work, especially with inexperienced tellers.

Banks have long used anti-fraud tools, such as pens with special ink, to detect counterfeit currency.

However, the ultraviolet light employed by Wells Fargo allows tellers to examine money, checks, credit and debit cards, and driver's licenses with one small, countertop machine.

Made by Uveritech of Glendora, Calif., the device is just 3 inches wide, 6 inches across and 6 inches tall.

"The technology is not unique, (but) the way we put this together is unique for this type of application," said Arthur Michie, founder and president of Uveritech.

With a volume discount, the machines cost about $100 apiece, he said.

San Francisco-based Wells Fargo plans to have all 137 Oregon branches equipped with the devices by the end of September, said Unger, the bank's spokesman.

Ultimately, he said, the devices will be in branches throughout the firm's 23-state banking empire.

Gene Poitras, president of the Credit Union Association of Oregon, said fraud can be a problem at credit unions so he wouldn't be surprised if some thrifts look into buying the devices, too.

CAPTION(S):

The Uveritech device uses ultraviolet light to illuminate security patterns in geniune currency.