Which method is useful in preventing check fraud?

Using watermarked paper for checks is a highly effective method for preventing check fraud due to its unique features that are difficult to replicate. Watermarked paper can include various designs, logos, or messages that are embedded within the paper itself, making it easily identifiable and less susceptible to counterfeiting. This added layer of security helps deter fraudsters from attempting to create fake checks, as the materials and methods required to forge a watermark are often complex and costly.

In addition, when checks are issued on watermarked paper, recipients are more likely to recognize the legitimacy of the check, reducing the chance of falling victim to fraud. This preventative measure works effectively in conjunction with other practices, although it stands out as a direct method to enhance the integrity of the checks being issued. Other options might include processes like audits or secure storage, but they do not specifically target the physical attributes of the checks themselves as effectively as watermarked paper does.