From checks being stolen in the mail to ACH debit fraud to payment app scams, financial fraud cases are increasing and affecting industries across the state.
In my 18 years in the Alabama banking industry, I’ve seen it all and advise business clients of all types to put cyber financial security at the front of their financial plan to avoid fraud.
Here are five tips I give my clients to help protect their businesses from a financial breach:
1. Review your recent business transactions.
One of the simplest ways to keep your finances secure is to check your accounts each day. Some scams start so small you may not notice the impact on your monthly statement, but chances are that you would notice it as part of a daily check-in.
2. Reduce physical check writing.
Writing a physical check can put your business at risk. Often physical checks are sent through the mail where interception is possible. Also, because checks display the full account number, your information is at risk of being intercepted and duplicated. Minimizing the use of physical checks decreases the chance of fraud.
3. Use electronic payments instead of checks.
As mentioned above, checks can be intercepted, while ACH transfers are electronic and secure. Sending electronic payments is a simple way to prevent account numbers from being taken. If you must send a payment in the mail, make sure to put it in a nondescript envelope. Never use a window envelope for a check.
4. Use Check and ACH Positive Pay as the gatekeeper of your transactions.
Most banks offer Positive Pay, a service that allows businesses to review all transaction amounts and payee information before payments are processed. Check and ACH fraud occurs every day, but having Positive Pay in place allows a business to deny any unauthorized transactions.
5. Develop a relationship with your banker.
Discuss your business cash flow with your banker. This will allow them to provide tools tailored to your company that serve as a line of defense to protect your company assets.
The frequency of fraud continues to escalate, and fraudsters are constantly thinking of ways to take your business’ money. It’s essential to be vigilant and to take proactive measures to protect your business.
Valley National Bank is a Member of the FDIC and Equal Opportunity Lender.
