No matter what type of business you are in, the risk of fraud is always present. While you can’t predict why or when your business becomes a target, there is a lot you can do to reduce the opportunity for fraud.
Reconciliation
Daily Reconciliation: Reconcile your daily banking transactions every day, including all debits
and all credits on all accounts. This data can be effortlessly downloaded to your computer in
minutes.
Positive Pay with Payee Match: Transmit a copy of your cheque issue file, including payee details
to the bank. Your daily incoming cheques can be monitored and unmatched items, including
altered payee, flagged for immediate action.
Month-End Bank Statements: Review every item on your statement. Let the bank know if you
do not receive your statement on the regular date. Notify the bank within 30 days if any item on
your statement does not reconcile to your records. Look at your cheques to see if any important
features have been altered.
Cheque Issues
Centralize Your Cheque Issuing: Don’t leave cheques in the hands of unauthorized staff.
Lock up Cheques: Securely and separately lock up unissued cheques, facsimile signature stamps
and any cheque reorder forms.
Enforce Security Procedures: Maintain control of your cheque stock throughout the entire
cheque printing/issuing, signing and dispatch process. Also, audit cheque stock frequently and
without warning.
Cheque Paper Stock: The selection of your cheque paper stock is important. Insist on quality
cheque stock to enhance your protection against fraud. Our cheques offer many of the latest
image-friendly security features.
MICR Serial Numbers: Use mandatory serial numbers on all cheques clearing business accounts.
Cheque Printing: When printing and processing cheques, use 10 point or larger type, and don’t
leave blank space on the payee line. If possible use a secure cheque printer or a protectograph.
Accounting
Separate the Functions: Different people should be responsible for the writing and signing of
cheques, and the reconciliation of the bank statement. Lock up your paid cheques.
Special Accounts: Open separate accounts to separate such functions as incoming wires and
high-volume small-dollar cheques.
Security Audit: We recommend a full audit by an accounting professional that includes a
complete review of your security procedures.
Remove the opportunity for fraud and you’ve gone a long way toward preventing it. When you consider
the financial losses, business disruption, and harm to customer confidence that can come with fraud,
implementing these best practices is a small price to pay. Contact John Poulet Cheque Writer Service
and ask how we can help you prevent fraud.
