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Fraud & Finance Forum: Key Takeaways for Protecting Your Business

By Hills Bank

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Authored by: Ian Probst, Treasury Management Relationship Officer

At the end of October, Hills Bank hosted the Fraud & Finance Forum, bringing together experts from law enforcement, banking, and cybersecurity to discuss the growing threats businesses face and practical steps to mitigate risk. Here are the highlights: 

Business Vulnerability

Unlike consumer accounts, business accounts operate under different regulations and do not have the same fraud protections. This means:

  • Businesses must implement strong security practices.
  • Reporting windows for fraudulent activity are shorter.
  • Ultimately, businesses may be responsible for losses.

Check Fraud Remains a Major Threat

Paper checks are still the most vulnerable payment method. The impact goes beyond the dollar amount:

  • Fraudulent checks can lead to operational disruptions and reputational damage.
  • Every check contains sensitive information: account numbers, signatures, and payment patterns—which fraudsters exploit. Tip: Reduce check usage wherever possible and implement Positive Pay. 

Move Toward Electronic Transactions

Switching to electronic payments like ACH transfers significantly reduce fraud risk. ACH allows businesses to send and receive funds securely without exposing sensitive information on paper checks.

Expert Insights

Eric Manuel - U.S. Postal Inspection Service

  • Mail Theft & Check Fraud: Mail theft is on the rise, with stolen checks sold online for large-scale fraud.
  • Prevention Tips: Avoid blue USPS drop boxes for outgoing mail, consider a PO box for incoming mail, and reduce check volume by using ACH or implement Positive Pay if you do need to write checks.
Learn More

Jeremy Gugel - Kalona Cooperative Telephone Company

  • Business Email Compromise (BEC): In 2025, BEC caused over $2.7 billion in losses. Always verify payment requests by phone using known contact info.
  • Cybersecurity: Employee education is critical. Implement multi-factor authentication, strong password policies, and regular backups.
Learn More

Brad Kunkel - Johnson County Sheriff

  • Fraud Investigations: Recovery is difficult and prosecution is rare. Prevention is key: monitor accounts and build strong banking relationships.
Learn More

Joe Cody - Q2 Online Banking

  • Online Banking Tools: Use alerts and electronic statements for real-time monitoring. Dual control processes add an extra layer of protection.
  • Positive Pay: Can help detect and stop unauthorized checks or ACH transactions before funds leave your account.
Learn More

 

Bottom Line

Fraud mitigation is far less costly than fraud recovery. By reducing check usage, implementing electronic payment solutions, and leveraging tools like Positive Pay, businesses can significantly lower their risk.

Ready to Protect Your Business?

Connect with our Treasury Management team today to learn how Hills Bank can help you implement ACH, Positive Pay, and other fraud prevention tools.