Protect Your Business From Payment Fraud
VP, Director of
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.