Fraud is a widespread issue affecting thousands of people, but you are not powerless. Customers, along with financial institutions, play a significant role in fraud prevention. Based on my experience advising customers, I am sharing tips on how you can take action against fraud and identify key safety measures to look for in your banking partner.
Check Your Accounts Daily
One of the easiest ways to keep your finances secure is to review your accounts every day. Certain scams may start small, making it difficult to notice their impact on your total balance, while others may be unintentional, such as misplacing the decimal point on a check. Checking your accounts every day can help you quickly catch instances of fraud.
Avoid Writing Checks
Printed checks contain sensitive information that can be easily captured or stolen. To prevent this risk, it is best to avoid using printed checks altogether. Most banks offer electronic payment options such as Bill Pay or ACH, making it easier to transfer money that are less likely to be intercepted by fraudsters.
Use Check and ACH Positive Pay
Positive Pay allows businesses to decline payments that do not match information previously provided by the business to the bank. With Positive Pay, businesses can mitigate fraud by adding an additional layer of security, allowing them to reject potential unauthorized transactions before the money is taken from their account.
It is not unusual for the fraud investigation and recovery process to take months for a business that has been defrauded, even if the fraud was detected in a timely manner. In certain cases, businesses are unable to recover from the fraudulent transaction. A business may reduce the chances of being placed in these types of situations by enrolling in Positive Pay.
Spend On Credit, Not Debit
Operating on credit, especially online, is one of the easiest ways to ensure a business has expected cash on hand. In the event of fraud affecting a business’s bank account, clients face the immediate challenge of not having available funds. By using credit cards, businesses can avoid the risk of not having immediate cash on hand when fraud occurs.
To help you and your business, Valley offers the ‘One Card’ product. This card functions as a purchase card and operates similarly to a credit card. With the One Card, you can ensure your business has sufficient cash on hand, establish spending limits for your employees, and restrict spending categories, such as allowing purchases only at service stations. Additionally, you can adjust spending limits and categories in real-time using your computer.
A Bonus Tip for Fraud Prevention
At Valley, we educate our customers on recognizing and preventing fraud. We also require multi-factor authentication to enhance security. As a business owner, you can educate your employees about fraud and implement systems and processes to prevent it too. Phishing scams often target lower-level employees, so educating them is crucial for preventing fraud.
As fraud becomes more frequent, you must stay vigilant and take proactive steps to protect yourself and your business. Contact your banker, review your accounts together, and ensure that you are minimizing your risk.
Contact Mark Ballard at 334.270.3044 or [email protected].
The Expert
Mark Ballard is a Senior Credit Officer for Valley Bank, covering Alabama as well as Central and North Florida. He has been in banking for over 25 years, with the majority of his focus in Credit Administration.
*This article is made available for informational and educational purposes only. Any views, thoughts, and opinions expressed herein are solely those of the writer and do not reflect the views, opinions, policies, or positions of Valley National Bank. © Valley National Bank. Member FDIC. Equal Opportunity Lender. All Rights Reserved.
