It is widely believed that businesses are the primary targets of check fraud professionals – especially by organized rings of criminals. As far as counterfeiting and alteration, payroll checks appear to be a favorite although all forms of business checks are targets from time-to-time.
Here are some tips for businesses to reduce the likelihood of check fraud:
- Order checks and deposit slips wisely
- Use checks and deposit slips from an established, respectable source, especially those recommended by your bank.
- Make sure you notify your check supplier and financial institution if a new check order has not been received within a reasonable amount of time.
- Make sure that your checks include Security Features that will help combat counterfeiting and alteration.
- Maintain adequate physical security of your checks and deposit slips
- Secure all reserve supplies and other banking documents in a locked facility. Keep blank checks locked up at all times and limit the number of people with access.
- Never leave checks or bank records unattended in order to assist customers.
- Change the locks on your facility when an employee leaves your employ.
- Employee relations policies
- Make sure you know who you are hiring to handle your money. Diligent reference and background investigations are important.
- Conduct random audits and enforce vacation policies.
- Have your employees bonded.