Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...
Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...
Guide to Preventing Workplace Fraud - Chubb Group of Insurance ...
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s<strong>of</strong>tware, and color laser printers <strong>to</strong> produce numerous counterfeit checks<br />
purportedly issued by the company.<br />
Counterfeit checks may not necessarily resemble the company’s, but they can<br />
look legitimate enough <strong>to</strong> be cashed and initially processed through the<br />
banking system. These checks have the company bank account and bank<br />
routing information imprinted on them so, at least initially, the checks will<br />
be debited <strong>to</strong> the company’s account. By the time the checks are discovered<br />
<strong>to</strong> be counterfeit, the perpetra<strong>to</strong>rs are typically long gone.<br />
Here are steps <strong>to</strong> consider for mitigating exposure <strong>to</strong> check artist fraud:<br />
■<br />
Consult with a commercial banker regarding security features and use<br />
them in your company’s checks.<br />
■<br />
Be aware <strong>of</strong> red flags. For example, counterfeit checks typically do not<br />
have micro-encoded features.<br />
■<br />
Closely moni<strong>to</strong>r and reconcile your company’s bank balance. Report<br />
all discrepancies and issues <strong>to</strong> the bank, both <strong>to</strong> alert the bank and <strong>to</strong><br />
protect the company’s legal rights and remedies.<br />
■<br />
Examine cancelled checks for indications <strong>of</strong> alterations, duplicates, or<br />
counterfeits.<br />
■<br />
Consider the use <strong>of</strong> “positive pay” or “reverse positive pay” procedures.<br />
Accounts Receivable/Incoming Payment Processing<br />
<strong>Fraud</strong>s naturally take place “where the money is.” In many companies, that’s<br />
the accounts receivable or remittance processing unit—the place where<br />
payments flow in<strong>to</strong> an organization.<br />
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