Have you ever been a victim of any type of fraud? Is it the worst right? Fifty percent of businesses experience fraud at some point. That’s a huge percentage! Let’s discuss a few types of fraud and how you can avoid them.
The Business of Check Fraud
This is a very difficult thing to catch if you have one in-house person both on the books and cutting checks. Small amounts here and there add up fast and can really traumatize your business. Plus, it is dishonest and you should not have to deal with it.
There are many types of check fraud, the most popular being double check fraud, check kiting, and check forgery. This is the act of documenting multiple checks for the same vendor and/or person when really every other check cut is to another person. Here is what can someone do with a stolen check – empty your bank account!
Again this vicious type of fraud is hard to detect and the best way to avoid it is by using a check issuing service like Checkissuing.com.
Checkissuing is continuing to offer various methods of prevention against check fraud. Check fraud is the most prevailing practice of payment fraud in the United States, and causes more damages than entirely all other forms of payment fraud shared. Every Individual, Company, and Organization is at threat. CheckIsssuing effusively understands the scale of this offense. Which is why we take many different measures to ensure each and every check we send on behalf of your business is protected from beginning to end.
All of our staff is trained with the most efficient tools in helping to prevent check fraud. Checkissuing’s trustworthy employees implement these efforts with each client and account. We have a variety of procedures and processes that require multiple authorizations, along with state of the art technology and resources to prevent check fraud.
This is the theft of money from your business through payroll. Obviously, we all want to trust one another and find peace on earth, but the reality is you need to keep a close eye on your payroll processing. Check payroll monthly. Make this a habit. If you are on top of necessary overtime, clocking in times, and being sure that all hours have been authorized then you might just catch any glitches early on. Let’s hope there will not be any, but always a good idea to keep watch and avoid a huge smack in the face.
Be careful with doing favors, as in hiring friends and family. Obviously, those are the people we trust the most, but bad things happen when people are in times of desperation. But no matter who you hire, and no matter how long you have known them, you have to make them accountable for their actions and the work that they do. Always keep your eyes on your personal and company’s finances. Of course, you have to let people do their job, but wanting to see monthly reports and staying on top of unnecessary spend is important for everyone involved.
The point here is to have a budget when it comes to monthly spend and if you see things are rising, question why.
Reporting stolen checks
Check Issuing Uses SAFEChecks to Prevent Check Fraud.
Check Issuing knows how much you value your sleep. We know this because we value our sleep. Sleep is important. Good sleep leads to improved brain function and productivity. It also leads to cool dreams for some of us.
Understanding the value of sleep is why Check Issuing uses SAFEChecks on all of your checks. We want to remove the worry from check fraud.
With SAFECheck, your checks are nearly impossible to duplicate without wreaking havoc on the original check. This means it causes damage and becomes an obvious sign of alterations. Criminals are discouraged by SAFEChecks, they’d rather pick on someone much less secure.
I mean, when you read that aloud, did it not sound just like a bedtime story? The sound of financial security and protection is the most sedative sound I can think of. Knowing your business is protected means sleeping better at night. No nightmares about evil criminals distorting and duplicating your checks for nefarious purposes. Instead, dreams of beautiful flower gardens and Taco Bell (hey, we don’t all dream the same, so don’t hate).
A lesson in check fraud prevention
John Smith manufactures after-market parts for motorcycles. He employs twelve people, six of the family members. John’s son, Mike, handles accounts payable and payroll.
Unbeknownst to John, Mike has a gambling problem. After a large loss at the racetrack, Mike begins issuing checks to himself, using vendor numbers and vendor names on the check stubs. When the bank statement arrives, he alters the copies of the checks, then photocopies the phony checks for their files.
After a year of losing money, John lays off a third of his staff. He can’t understand why his business isn’t profitable. He blames the economy.
He doesn’t discover the theft until he goes online to look for a copy of a check to prove payment to a vendor. He finds numerous checks written to his son, Mike. After confronting Mike, John discovers that the fraud has been going on for over eighteen months.
This story is typical of small business employee fraud. Small businesses often lack enough personnel to manage dual control of accounts payable, receivable, and bank statement reconciliation.
This is how a check issuing company can help. One of the services offered by a quality check issuing company is Positive Pay. In our example above, Mike would have had to upload a file to the check issuing company with the vendor name and dollar amount of each check. When the checks clear the bank, they are compared to the file. If there are any discrepancies, the business is contacted for a decision to either pay or return the check. Using a second person as the decision maker would have saved John a lot of grief and money.
The median loss due to employee fraud every year is $145,000. Billing fraud, corruption, check to tamper, skimming, and expense reimbursement fraud robs small businesses of vital cash flow. Outsourcing payments let personnel focus on vital tasks while giving the business owner peace of mind.
Check Writing Services: We Aren’t All The Same
You are in the business for hiring a check writing service to plug into your company. I mean, that’s most likely how you ended up landing here, on this fabulous Check Issuing blog, right? Beyond the magic of the Internet leading you to this destination, you have future plans for your company’s accounting sector. You realize the great benefit which comes with utilizing a check writing service.
So they are all the same, right?
Actually, that’s pretty wrong. Remember, when you hire a third-party company to work with your current infrastructure, in many ways, you are gaining a new roommate. I am sure many of you have some pretty bad memories of that first roommate you had in college. The guy would leave open bags of Doritos in the room and play the stereo late at night. You’d try to talk with him but he was unreasonable and a bit of a sociopath. Yeah, that sucked. Let’s not go back in time, shall we?
Check Issuing has a reputation of being the roommate who doesn’t leave smelly Dorito bags around the dorm room. We cohabitate like a boss. Just ask any of our current clients who have been with us for years. There is a reason we keep the same roommates and it isn’t because we play Motley Crew after midnight.
At Check Issuing, we have what is known as “people skills.”
Why is Check Issuing the perfect match?
We are a friendly, easy to contact check writing service.
We can help brand your checks (this is part of the service) and that makes your company appear more professional.
We help you distribute memorandums, specials, and promotions alongside your checks.
We don’t eat Doritos (well, at least not a ton of them).
We help prevent check fraud using state of the art checks and check envelopes.
The fact is, you have options. At Check Issuing, we get that. And that’s why we compete for your business. We also compete for your loyalty. We want you to stick around for years, not weeks or months. We are a longterm option. We are the type of check writing service you take home to meet mom. And hopefully, mom has some Doritos. Ok, maybe I lied a little…..
Check out our bank statement printing services