Closed account scams take advantage of the float time between ATM deposits and checks drawn on closed accounts at a distant bank. Among the most oft-cited ways to reduce check fraud is the centralization of the check writing process. By reducing the number of people in an organization who can sign checks and by carefully controlling access to check stock and the equipment needed to produce legitimate checks one can significantly reduce the chances of being victimized. Among the other most common suggestions for reducing the likelihood of check fraud are the use of positive pay files, special check security features, better screening of newly hired employees and proper segregation of duties. Of course, the elimination of printed checks is the ultimate solution to check fraud.
Most companies use a mix of paper and electronic instruments to manage the payment process.
However, the conversion to a 100 percent electronic payment society is many years away. In the meantime, there are many systems that can help a company tighten control over the internal check writing process. MICR payment management system software is widely available and offers similar core functionality. Choosing the right system for a specific organization depends on particular requirements, including the check printing volume, remote printing needs, reconciliation demands, and the level of involvement in electronic payment methods. When choosing a system, look at the vendor's depth of experience, current client list, system options, system affordability and links to major accounting and financial software.