Check Fraud - Best Practices

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Check Fraud - Best Practices

Have a Conversation with Your Bank	1) Take time to talk to your bank and asses the risk your business may have. 2) Ask your bank what tools they have/suggest that fit your unique situation. 3) Request supporting literature from the bank.
Define & Implement Your Own Fraud Prevention Program	1) Assess your own risk. 2) Consider Bank Fraud Prevention products. (reverse, payee, or positive pay) 3) Segregate accounts and monitor account activity. 4) Conduct surprise audits, change procedures & rotate responsibilities.
Train & Manage Your Employees	1) Insist employees focus on security when working w/ cash management tasks. 2) Train your employees to recognize fraud. 3) Separate tasks, vary procedures by day & individual. 4) Rotate responsibilities between different employees.
Secure Check Stock & Check Storage	1) Maintain check producing equipment/check stock under lock and key. 2) Restrict employee, contractor and janitorial access. 3) Use secure check stock with a minimum of 10 security features. 4) When closing an account destroy all products with account #s. (chk, dep, stmp)
Conduct Timely Account Reconciliation.	1) Reconcile & monitor your accounts regularly to ensure accurate reconciliation. 2) Use Bank Account Reconciliation Tools if available. 3) Examine Signatures and verify sequence and check numbers.
Protect Your Account with Security Products	1) Use security tinted envelopes. 2) Sign checks using pens that contain with anti-check washing ink. 3) Use Tamper Evident Deposit Bags to protect not only deposit but your account. 4) And of course again use check stock with a minimum of 10 security features.
Maintain Secure Electronic Environment	1) Keep your computer systems up to date systems and software. 2) Maintain Secure Passwords 3) Setup Dual Controls for payment initiation and approval. 4) Limit internet use for computers used for online banking.
Issue Only Secure Checks	1) Ensure your accounts are set up properly. 2) Pre-authorize high value checks or require two signatures. 3) Keep a close eye on stock and check number sequence. 4) Notify bank when a checking account should be closed.
Accept Authorized Checks	1) Ask for appropriate identification and use check verifications services. 2) Use bonded couriers to make deposits. 3) Consider using your banks lock box service. 4) Vary deposit procedures by individual and by day.