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Fraud Check Reduction |
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Reducing your Exposure to Fraudulent ChecksEach year, about 65,000,000,000 are written. As a common method of payment making in the US, safeguarding business checks and personal checks against check fraud is very important to keeping your money where it should be. In order to protect such incidents, developing and keeping strong internal control of your checks as should be a priority. Businesses should always use check stock with security features to prevent fraud. This can include having check stock with watermark features, multi-colored backgrounds that make duplication complicated or pantograms, although there are many more other features out there. Another way businesses can help prevent check fraud is to keep blank checks locked in a secure place. That way, there’s only very few people (the one(s) with the key(s)) who would be able to access the blank checks. Official signatures for the check writing should also be limited to as few people as possible in which the bank will know whom is an authorized signer and whom is not. However, businesses should also consolidate the check writing function so there is only a limited access to the check stock. That leaves less room for forgetting to lock the check stock because of excessive uses and such. Using internal controls such as separating the check writing and account reconcilement functions also helps eliminate because of a “check and balance” union. Other steps to limit exposure to check frauds are to reconcile accounts daily, setting separate accounts depending on payments (i.e. lower payments in one account, high payments in another account, setting limits), and using automated pay systems to help locate potential fraudulent materials. By using these measures, you can help keep
fraudulent checks on bay. However, these items aren’t an all-inclusive
list. Remember, you bank and check supplier can also provide you with
advice on how you can limit fraud checks. |
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