The best way to limit your exposure to fraud and reduce the heavy financial toll it imposes is to be aware of the various types of scams targeting small businesses.

Check Fraud

According to the Association for Financial Professionals, 63% of organizations experienced check fraud in 2022.  Today’s technology enables scammers to more easily alter or copy a stolen check. As a result, mail theft is on the rise. You can reduce your risk of check fraud by:

  • Paying vendors, employees, and suppliers electronically via ACH.
  • Allowing regular expenses such as utilities to be debited from your operating account.
  • Using the biller or vendor’s online portal to pay.
  • Writing checks with a gel pen, which may help prevent the check from being washed or altered.
  • Avoiding mailing checks from any central receptacle such as a blue box. Deliver them to the post office or hand them to the postal carrier.
  • Monitoring your account balances daily.
  • Viewing cleared checks to confirm that the amount, payee, and endorsement are correct.

 

Payment Scams

Scammers often create a false sense of urgency or use intimidation to coerce a business to provide sensitive account information or to rush a regularly scheduled payments to a new address. In today’s environment, it pays to be suspicious.

  • Question changes to any instructions for payments and always verify instructions with the vendor.
  • Question rush payment orders by verifying the information with the vendor.
  • Question any request to be paid using a wire service, cryptocurrency or gift cards.
  • Verify the email addresses of the sender and compare with known information, especially if payment is requested.
  • Government agencies, utility companies, and banks will never contact you and ask for your account information – especially your login information. Never provide sensitive account information over an unsolicited telephone call or email.

Fake Invoicing

Credible looking invoices for small amounts for website domain renewals, memberships, and directory ads are quite common.  Verify that services were received for every invoice received before submitting it for payment.

Have you been scammed?

If you suspect that you may have been scammed, contact the bank immediately.  As always, we welcome you to call or visit our banking centers during business hours with any questions or concerns you may have.