Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...

company. Checks with identified inconsistencies are not honored by
the bank unless the company specifically authorizes payment. Instead,
these checks are returned through the banking system and are not
charged to the company’s account.
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Other presented checks are routinely paid through regular
banking procedures.
“Reverse positive pay” works much the same way but involves the company’s
reviewing a list of checks prepared by the bank (a list of “checks presented”)
rather than a list prepared by the company. The company would compare
the “checks presented” list against internal records of the checks the
company has issued. In the “reverse positive pay” process, the company
would typically need to notify the bank as to which checks to pay and which
to reject.
Additional information about “positive pay,” “reverse positive pay,” and
other check-fraud protective measures may be obtained from commercial
bankers and other financial institutions. Bankers are also an excellent source
of information concerning the types of fraud currently being experienced by
businesses. Take the time to meet with your banker concerning check fraud.
Asset management and disposal. Companies should have a comprehensive
asset management program in place. Generally, this means that assets valued
above an established amount are tracked by the company from the date of
receipt to the date of final disposal. Although asset management programs
will vary according to individual circumstances, these programs typically
incorporate many of the following features:
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Detailed inventory records.
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Tamper-resistant asset identification tags.
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Physical security measures and building-access control.
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