10 TIPS FOR PROTECTING YOUR INSTITUTION & CUSTOMERS FROM CHECK FRAUD Michael Rutledge Payments Product Management, Vericast Fraud has become more of a factor for consumers and businesses alike, especially check fraud. Several recent media reports have incorrectly positioned the process of sending checks via postal mail as unsafe. Despite those reports, checks are still a secure form of payment and one of the safest ways to send money. Checking fraud typically takes three forms: 1. Altered checks. Fraudsters steal a legitimate, signed check and alter the payee and/or amount. The check is then cashed, and funds are gone from the account before the account holder realizes the check didn’t process as planned. 2. Counterfeit checks. Fraudsters steal basic account information and use it to create fake checks. 3. Stolen checks. Fraudsters outrightly steal newly ordered checks directly from the recipient’s mailbox. Let’s review what you can do to protect yourself from check fraud and what advice you can provide your customers to ease their concerns. When depositing or cashing a check for a customer: 1. Be cautious of any checks that look like they have been tampered with or feel suspicious. 2. Look for inconsistencies in information, especially when comparing against identification. 3. Be cautious of checks with low check numbers, no Utah Banker 10
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