Check Fraud and Forgery Prevention
June 3, 2025
Check fraud is a costly crime involving alteration, counterfeiting, or theft of checks for unauthorized payments. Organizations should implement strong security measures to combat these fraudulent activities. Consider these forgery prevention tips to avoid financial losses and reputational damage for your business.
Forgery Prevention Techniques
Implement a system of Positive Pay: By verifying details of checks and ACH transactions against a pre-authorized list, Positive Pay can help prevent unauthorized payments.
Reconcile your bank statements on a regular basis –at least every 30-60 days.
Utilize physical check security features such as security ink. Use dark blue or black ink, especially gel ink, to make signatures and writing more difficult to erase or cover. Use "indelible," or long-lasting ink.
Be cognizant of the way in which you mail checks: avoid community mailboxes, consider sending larger checks by registered mail. Consider using online payment rather than physical checks to pay bills.
Use dual controls. Have at least two individuals review checks.
Utilize fraud detection software to catch any irregularities in deposits or disbursements.
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