Tips for Preventing Check Fraud
These tips can help reduce your company's exposure to check fraud.
Control Your Checks and Financial Documents
- Use high-quality, blank check stock with built-in security features, which may include fluorescent fibers, watermark, chemical resistance, bleach-reactive brown stain, photocopy void pantograph, endorsement backer, thermo-chromic ink, micro-printing, warning band border, laid lines or non-negotiable marks.
- Securely store check stock, deposit slips, bank statements and canceled checks.
- Implement secure processes for financial document destruction.
- Establish an employee order/reorder policy for check stock.
- Purchase stock from known vendors.
In 2013, 60% of organizations surveyed were victims of actual or attempted payments fraud. Among organizations that suffered a financial loss, the typical loss was $23,100.
Help reduce fraud by requiring additional approvals for your transactions.
Establish Internal Controls
- Segregate duties.
- Assign different employees to make payments and reconcile accounts.
- Require secondary approval for exceptions if the purchase order does not match the invoice.
- Monitor and reconcile accounts daily.
- Use online statements, reporting and reconciliation services to speed the reconciliation process.
Rely on Online Solutions
- Make payments online.
- Use fraud prevention tools.
- Review online reports frequently.
Secure Your Online Correspondence
- Mask account and Tax Identification Numbers in correspondence.
- Use encrypted email for confidential, non-public information.
- Keep up with the latest fraud trends, such as phishing and malware.
To learn more about Chase Commercial OnlineSM,
please contact us or call your Commercial Banker.