Check fraud can range from modifying actual checks like the dollar amount or payee name, to depositing a check into a fraudster’s account.

The culprits range from low-level fraudsters to sophisticated crime rings. They attempt to steal checks from your mailbox, your destination’s mailbox and USPS collection boxes. These criminals are also robbing mail carriers and sorting offices to obtain physical checks and manipulate them or turn them into a template to create counterfeit checks.

Business checks often have more funds available and tend to lag in noticing the fraudulent activity, making them an easier target for check fraud. A frequent check fraud method that has been encountered in AgWest’s territory is the fraudster manipulating a payee name while leaving the check number and amount alone.

Here are some best practices to deter check fraud:

• Install a locking mailbox or mail checks from the post office.
• Use online payments, such as ACH.
• Keep blank checks in a locked/secure area.
• Use remote or direct deposit.
• Shred deposited checks and documents.
• Complete daily account reconciliation.
• Use Positive Pay Services if available. Positive Pay helps with the early detection of altered or counterfeit checks through daily verification of checks posting to your account. If the checks presented do not match your issued items, you can return them which helps protect your operation against fraudsters.

At AgWest, we work to keep your information secure. If you notice suspicious activity or unauthorized transactions, act immediately by contacting your financial institution. In addition, confirm any changes to banking information by directly calling the business or individual to ensure the request is legitimate and not a fraud attempt.

The surge in check fraud will dwindle as business owners remain vigilant and employ other methods to safeguard their operation. In the meantime, education and implementing these best practices may make a significant difference to protect your funds.

Fraud and Security Resources

Check out these helpful resources to learn more about ways to protect your operation from fraud:

Fraud and Security (AgWest) Fraud (CoBank)

Return to Cybersecurity News home.