Avoiding check fraud

Its better to not write checks and ACH everything.  One person initiates an ACH, another person in your company clears it.

Never take ACH instructions by email.  Never believe it when anyone emails you or your accounting staff and says, “I got a new bank account”, or “because of fraud, we have changed our bank account.”   Call to verify.

If you are going to write checks use a service called “Positive Pay”, available from your bank. You report to the bank the check number, payee, and amount of all the checks you write.  When the bank is presented with a check to cash or clear, they have to match up the information with your list or they don’t clear it.

It adds another step, but these days mail theft and check washing/altering and phony check printing are rampant.

When it comes to wiring money – Beware of the wiring instructions – verify very carefully!  Watch out for changes at the last minute – even from your attorney!  The bad guys are monitoring your email and make changes at the last minute to get you to wire money to them!