Check fraud is a serious problem that costs American businesses
tens of billions of dollars every year. It has always been with us, but today
is a cyber-crime. Anyone with a laptop, a scanner, off-the-shelf software and
criminal intent can create fraudulent corporate checks that are virtually
indistinguishable from the real thing. It only takes a few hours for high-tech
criminals to create hundreds of bogus checks, once they have accessed basic
corporate account data.
As a consequence of this criminal activity, American businesses
take a direct hit to their bottom lines. Changes in the Uniform Commercial Code
have redefined liability in corporate check fraud, so that there is more
responsibility placed on the business community. And so it has never been more
important for them to learn to protect themselves against the threat of check
fraud.
Preventing check fraud is not as easy as it may sound, and
experts say that there is no one hundred percent foolproof protection. Some of
the things that businesses can do to protect themselves include:
·
Do not use pre-printed check stock. Instead, use
blank check stock along with MICR laser check printing software.
·
Use strictly controlled check-printing
procedures. Be sure that only those employees directly involved in the
accounting process have access to check printing equipment.
·
Only use check stock with security features.
Certain check stocks have security features that prevent copying or mimicking.
·
Write fewer checks. Instead, use automatic
deposits or electronic funds transfers. The single most effective way to stop
check fraud is to not write any checks at all. That may not be a realistic
option, but reducing the number of written checks is a good start.
Robert Frimet is the owner of RMF Consulting Group in Las Vegas,Nevada. Bob is a former president of the Nevada Check Cashing Association, and
also served on the National Check Cashers Association Board of Directors.
