A routine fraud investigation became a Fraud Fighter success story when a business customer discovered that an altered check had fraudulently cleared their account. After learning of the situation, Horicon Banker Paul immediately stepped in to help the customer navigate the recovery process and strengthen their account protections. What began as a response to a single fraudulent check soon highlighted the value of proactive fraud prevention. By implementing Positive Pay and working closely with the customer, Paul helped prevent additional losses and demonstrated how the right tools and quick action can make all the difference when fraud strikes.
What first caught your attention?
Paul: A business customer discovered that a fraudulent, altered check had cleared their account. Once they notified us, we immediately began working with them to investigate the situation and determine the best path forward.
What steps did you take to help the customer?
Paul: We assisted the customer with the fraud recovery process and worked with them to strengthen their account security. One of the key recommendations was enrolling in Positive Pay, a tool designed to help businesses detect and prevent check fraud.
Did Positive Pay make a difference?
Paul: Yes. After experiencing one instance of check fraud, the customer enrolled in Positive Pay to add an extra layer of protection to their account. Not long afterward, another altered check for $4,000 was presented for payment. This time, the suspicious item was quickly identified and stopped before it could clear the account, preventing an additional loss and reinforcing the value of having proactive fraud prevention tools in place.
Did Horicon Bank work with anyone else during the investigation?
Paul: We coordinated with the appropriate fraud departments and financial institutions involved to alert them to the situation and help address the fraudulent activity.
What is the biggest takeaway from this experience?
Paul: Fraud can happen to any business, which is why prevention is so important. Positive Pay provides an extra layer of protection by helping businesses identify suspicious check activity before funds leave their account.
What would you say to a business that is considering Positive Pay?
Paul: I'd encourage them to take a close look at it. The tool can help reduce fraud risk, protect company funds, and provide valuable peace of mind knowing there are safeguards in place to catch suspicious transactions.
Fraud Prevention Tips for Businesses
- Enroll in fraud prevention tools like Positive Pay to help detect altered or unauthorized checks before they clear your account.
- Review account activity regularly and report suspicious transactions immediately.
- Secure blank check stock and limit access to trusted employees.
- Reconcile accounts promptly to identify discrepancies as quickly as possible.
- Use electronic payment methods when appropriate to reduce exposure to check fraud.
- Be cautious when mailing checks and avoid leaving outgoing mail in unsecured locations.
- Train employees on common fraud schemes and how to recognize warning signs.
- Establish internal controls for issuing checks and approving payments.
- Keep contact information up to date with your financial institution so you can be reached quickly if suspicious activity is detected.
- Partner with your banker to review available fraud prevention services and determine which solutions best fit your business.
Bottom line: Fraudsters are constantly looking for opportunities, but proactive monitoring, strong internal controls, and fraud prevention tools like Positive Pay can help protect your business, your accounts, and your bottom line.