Consider a positive pay system for larger customers. Borklund says one of the biggest increases in check fraud has occurred at large, big-name companies, such as public utilities or restaurant chains. Forgers often print mass amounts of fake payroll checks in these companies' names and distribute them. Encourage customers to examine their checks carefully. Borklund says all businesses need to be diligent about immediately reconciling their bank statements and looking at the checks they get back.
Many companies never examine their checks closely.
Altering an amount or name on a check is a fraud commonly seen by smaller businesses, he says. Analyze the customer's check storage system. Sims says he found most of his clients already kept their checks locked up, but it's good to ask and make sure only select employees have access to them. Beware of dumpster thieves. Even if checks are ripped, some people just tape them back together, she says.