Protect Your Small Business Against Check Fraud

To commit check fraud, criminals may steal and alter an existing check, or they may produce counterfeit checks to allow for unauthorized withdrawals. Bad actors often target business accounts over personal accounts because of large transaction volumes, more funds and higher liquidity, making it easier to cash higher dollar counterfeit or altered checks — and more difficult to detect fraudulent transactions and overdraft issues.

Small businesses should take the following steps to protect against check fraud:

• Adopt an employee need-to-know policy to limit access to sensitive information and business checks.
• Talk to your bank about services to monitor business account activity, such as fraud prevention programs (FPPs). FPPs can require and request verification for all checks drawn against specific accounts to detect and prevent fraudulent activity.
• Explore the use of a positive pay product with your bank to add another layer of validation protection to the check process.
• Confirm that all financial instruments drawn from your business accounts are received by the intended recipients. Any outstanding items should be flagged.
• Use the letter slots inside your local Post Office for your outgoing mail or hand it directly to a letter carrier.
• Pick up your mail promptly after delivery. Don’t leave it in your mailbox overnight. If you do not have weekend hours, coordinate with your local Post Office to hold any weekend mail until the following business day.

Anytime you see a transaction you aren't familiar with on your account, please contact us at 1-800-272-0159.

Article taken from American Bankers Association Foundation.