Protect Your
Business from
CHECK FRAUD
Has your business had checks stolen or
altered? Have your accounts been subject
to counterfeit checks or unauthorized
withdrawals? If you answered yes to either
of these questions, your business could be
the target of a check fraud scheme.
Bad actors target business financial
accounts over personal accounts because
of large transaction volumes, more funds,
and higher liquidity, making it easier to
cash higher dollar counterfeit or altered
checks — and more difficult to detect
fraudulent transactions and overdraft
issues. Securing your checks is vital!
BAD ACTORS COULD:
- Target business accounts by intercepting outbound or inbound mail.
- Recruit “insiders” to gain access to sensitive information such as bank account numbers or personally identifiable information (PII).
- Obtain examples of legitimate monetary instruments, such as business or cashier checks, in order to duplicate the banking details onto counterfeit checks.
- Purchase account details and business checks through an online forum.
HOW TO PROTECT YOUR BUSINESS:
- Adopt an employee need-to-know policy to limit access to sensitive information and business checks
- Talk to your bank about services to monitor business account activity, such as fraud prevention programs (FPPs). FPPs can require and request verification for all checks drawn against specific accounts to detect and prevent fraudulent activity.
- Explore the use of a Positive Pay product with your bank to add another layer of validation protection to the check process.
- Use the letter slots inside your post office for your outgoing mail or hand it directly to a letter carrier. Pick up your mail promptly after delivery. Don’t leave it in your mailbox overnight. If you do not have weekend hours, coordinate with your local post office to hold any weekend mail until the following business day.
HOW TO PROTECT YOUR BUSINESS:
- Report the fraud to your bank right away! If feasible, change your account number(s). Bad actors often reuse account details and/or sell them online, resulting in additional counterfeit attempts and fraudulent activity.
- Report it to your local police department immediately and report all suspected mail theft to the United States Postal Inspection Service at uspis.gov/report or at 1-877-876-2455.
