The shift of payment methods from traditional paper-based to digital in B2B has made lives easier and payments quicker. But when it comes to payment frauds, both checks and digital payments become a bottleneck for the company’s economy.
In this digital day and age, giving out personal information is an everyday occurrence, something we do with every paper as well as paperless transactions. But is the keyed-in information safe? The information on checks could be altered easily, whereas online information could be forged as it leaves a digital footprint. If these sensitive data falls into the wrong hands, one might very well get robbed of their hard-earned money. So, beware!
Here are some Best Practices to prevent Check Frauds.
The risks associated with offline and online payment methods are prevalent in many B2B companies. There are numerous ways fraudsters could steal data and carry out thefts. Banks here play a significant role in safeguarding payment information from imposters and forgery.
When someone intentionally steals your checks and encashes it to extract money from your bank account, a check fraud occurs. By the time the collector realizes that there is an alteration of the payee name and illegal extraction of money, your company would have already lost the dollar amount. The next immediate step that needs to be taken is a bank run.
Best Practice: In case of any check fraud, companies should approach the bank and fill the relevant affidavit form to recoup their funds.
Scenarios that require an immediate affidavit form fill:
The ‘arms race’ between criminals and security specialists is entering a new phase. Here is a look at how various Proactive Measures could help companies stay prepared for check fraud.
Which Payment Method is Most Prone to Errors?
Which is the safest Payment Method?
A credit card is a safer method of payment that encompasses a few advantages and disadvantages. To get rid of imposters when using a credit card requires help from Bank Services. Is your company successful in eliminating fraud from Credit Card, ACH, and Wire payments? If not, delve into the best practices offered by your banks and save your company’s dollar amount.