Check fraud is one of the biggest concerns facing businesses today. Criminals are constantly coming up with new ways to beat the systems that companies put in place to combat fraud. It is a never-ending struggle to protect a business from fraud. Despite businesses embracing technology to replace using traditional paper checks, thieves can still take the information available online and use it to steal a victim’s identity or to get lines of credit.
Fortunately, there are always new safety measures being developed that help to protect businesses and keep them a step ahead of criminals. The following practices are some of the best ways to help protect your company from check fraud.
Payroll Services and Direct Deposit
One of the biggest problems with paying your employees by check is that most checks will have the personal information of both the employee and the business written for anyone to see. An enterprising person can easily use the information they glean from a check to commit fraud against your company.
The best way to combat this is to use a payroll service to handle paying your employees. These companies can skip the step of paper checks altogether through direct deposit. Plus, payroll companies will have all the financial information concerning the money you are paying out saved for later access. This can make filing taxes much easier to deal with.
Utilize Advanced Digital Printing
It’s often the case that even while businesses have advanced to direct deposit, not all employees want this type of payment method. For those situations, you can utilize advanced digital check printers.
Digital printers provide secure check printing. These printers can implement watermarks only visible by UV light, provide confidential printing, and offer authentication procedures for optimal security.
While it will cost money up front to get the software and materials needed to print your own checks, the security it provides is well worth the initial expense.
Switch to Smart Payment Options
For many smaller businesses or those that employ contract workers, you don’t even need to deal with the costs of hiring a payroll service. Instead, you can use the newest online payment options to pay your workers instantly.
Fortunately, many cell phone providers have developed ways to pay for goods. These apps, such as PayPal or Venmo, allow businesses to easily send money with the swipe of a button. This eliminates the risks of check fraud since there is no paper trail that can be forged.
Just keep in mind that while these types of apps will eliminate the need to use paper checks, they still have some flaws that can be exploited. Phones and online accounts can be hacked if users are careless with their personal information.
Invest in a Smart Safe
Many businesses make the mistake of leaving their checkbook in an unsecured area where managers or employees can easily access it. This isn’t smart because someone could easily steal a page of checks and use them before anyone noticed. If you must use paper checks, then you should always keep them locked in a secure location.
Nowadays, there are plenty of options for smart safes. These safes provide the standard key or lock-number combination system, but they also have more advanced options like biometric fingerprint or retina scanners. That way, you can ensure the only person accessing your safe and your checks is you.
With technology having reduced the need to use paper checks, you would think that there would be less fraud, but sadly that isn’t the case. This is why businesses should always make an effort to keep their checking information secure. By using a payroll service or secure printing, limiting the number of checks you write, and keeping your checks as secure or making them as needed, you will limit the chances of fraudulent activity affecting your company.
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