Business Community eNews. Baylake Bank. Helping Build the Good Life. Member FDIC

Protect Your Business From Payment Fraud

Joe Hockers

Joseph Hockers
VP, Director of
Treasury Management

Despite a nationwide payment system that is converting more and more to Automated Clearing House (ACH) payments, check fraud continues to be one of the leading issues that banks and customers face. Common forms of fraud included altered payee names, counterfeit checks, and lost, stolen or counterfeit paychecks. It is critical that you are taking steps to protect your business to stay one step ahead of all types of scams.

To help prevent you from being a victim of fraud, discuss your risk management processes and procedures with your bank professional to verify that you have the controls in place to protect your company’s finances. Baylake Bank offers technology and products to help identify inconsistencies and protect you from unauthorized transactions. One example is Positive Pay. Positive Pay is the most effective prevention method businesses can use. With Positive Pay, your company provides a list of all checks issued and the bank pays only those that match with the list. “Suspect items” can be identified and reviewed and rejected for payment. Banks also offer ACH Debit Blocks and Filters, which prevent unauthorized originators from accessing your accounts electronically.

Suggestions to Protect Your Business

In addition to setting up Positive Pay and ACH Blocks and Filters on your account, a number of no or low cost steps can help any organization deter fraud:
• Fully screen job applicants by running a credit check and thoroughly examine education records, criminal record, history of employment, and references.
• Set procedures and policies to deter fraud. Do not allow one person to both issue and sign checks, process accounts payable, and reconcile account statements. Split up responsibilities among different staff members. If you don’t have enough staff, consider using an automated banking service.
• Cut back on paper checks. Payroll checks continue to be a prime target for check fraud. Use ACH payments to eliminate the need to write checks to creditors. Use direct deposit to do away with checks written for payroll.
• Check bank accounts often. Online banking with eBanc or BizBank help make viewing your accounts convenient and faster fraud detection increases the likelihood of recovery.

For more information or to talk with a Treasury Management professional about your business needs, contact Baylake Bank.


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