In a check fraud scam, criminals forge or alter a check to steal money from a business's bank account. Here are some essential steps to guard against check fraud:

Implement Strong Internal Controls:  Establish a clear and robust system of internal controls within your organization. Ensure that multiple people are involved in the check issuance process, including creating, approving, and signing checks. This ensures that no single individual has complete control over your company's finances.

Regularly Review Your Accounts: Reconcile your bank accounts regularly to detect any unauthorized or suspicious transactions promptly. Reviewing your bank account statements on a monthly basis can help identify any discrepancies early.

Hills Bank Online provides you with a convenient way to review your account activity and detect fraud earlier. Make it part of your routine to check your accounts with online banking!

Secure Your Check Stock: Store your blank check stock in a secure location and limit access to authorized personnel only. Consider using lockable cabinets or safes to protect your checks from unauthorized use.

Educate Your Team: Train your employees to recognize warning signs of check fraud, such as irregularities in check appearance or suspicious behavior from vendors or customers. Encourage them to report any concerns immediately.

Prevent Mail Theft: Thieves can steal checks and other important documents from the mail. By taking your mail directly to the post office (preferably inside), you can help it get to its destination safely. Also, consider dropping off your mail before the last pickup of the day and using a mail slot or PO Box to receive mail.

Use Positive Pay: Hills Bank’s Positive Pay service is designed to help businesses mitigate fraud by ensuring that the only checks that are paid are ones you have authorized. Even in the event that blank checks are stolen and used by fraudsters, Positive Pay can help prevent your accounts from being debited.

Learn more about how Positive Pay works.

 

Have any questions about check fraud or other possible threats to your business? Get in touch with your Treasury Management Representative or visit our Business Resource Center for plenty of practical tips.