Over the past five years, the risk of check fraud has been steadily increasing, making it essential for individuals and businesses to take proactive measures to protect their finances. Checks continues to be the payment method most frequently targeted by fraudsters. At Arett, we strongly advise our customers to mitigate this risk by exploring options such as Positive Pay with their banks. By familiarizing themselves with the concept of Positive Pay and other fraud prevention strategies, individuals can take control of their financial security.

Understanding Positive Pay:

Positive Pay is an automated cash-management service offered by most banks to combat check fraud. With Positive Pay, banks match the checks issued by companies with the ones presented for payment. Any checks considered suspicious are returned to the issuer for further examination. By implementing this system, businesses can significantly reduce the risk of check fraud.

The Power of Awareness and Countermeasures:

Increasing your awareness of potential forms of fraud and the necessary steps to counter them is crucial in safeguarding your financial interests. As the shift to electronic transactions has brought unprecedented speed and efficiency, it has also exposed individuals and businesses to new forms of fraud. Arett is committed to helping you take advantage of modern technologies while mitigating risks effectively. It is vital to address your overall risk profile, including both digital and paper-based fraud, as you develop your cash management capabilities. By doing so, you can enjoy the benefits of technology while keeping your business secure.

According to Citizens Bank: The following statistics emphasize the importance of implementing fraud mitigation measures:

  1. In 2019, 81% of companies experienced payments fraud, highlighting the widespread nature of the issue.
  2. On average, businesses reported losing 5% of their annual revenues to fraud, underscoring the significant financial impact.
  3. Checks remain the primary target of fraudulent activities; however, fraud via ACH credit has also seen a rise in recent years.
  4. Although the occurrence of business email compromise (BEC) has decreased, 75% of businesses still reported being impacted by it in 2019.
  5. Encouragingly, 100% of the anti-fraud controls established by surveyed companies were effective in preventing some form of fraud, emphasizing the value of proactive measures.

The rising risk of check fraud necessitates proactive measures to protect your finances. Exploring options like Positive Pay with your bank can help reduce the likelihood of falling into check fraud. Additionally, staying informed about the various forms of fraud and implementing appropriate countermeasures is crucial for individuals and businesses alike. By taking these steps and remaining vigilant, you can avoid the risk of fraud and ensure the security of your financial transactions.

Click here to learn more about Mitigating Fraud and Account Reconciliation!