While fraud is often associated with stolen identities, credit card numbers, and passwords, one of the most common forms is actually check fraud. According to the American Bankers Association, check fraud makes up almost half of all fraud. The FTC says reports of fake checks have grown 65% from 2015-2020.
The good news is there is a solution for businesses: Positive Pay. Now available for all Gateway Bank Cash Management customers, this automated check matching service helps minimize losses due to fraudulent checks.
If your company has been a victim of check fraud, or you’re looking for new ways to strengthen your controls, here are three ways Positive Pay offers prime protection.
A security guard for your checks
Think of Positive Pay as a security guard or bouncer for check cashing. Like a checkpoint that confirms people are on the guest list as they arrive for a party, Positive Pay verifies each check being cashed is legitimate before allowing it to clear.
4 layers of validation
Companies that use Positive Pay electronically send information to their bank about the checks their team has written. This is called a check-issue file. Every time a recipient tries to cash one of those checks, Positive Pay verifies four pieces of information:
- Check number
- Dollar amount
- Issue date
- Payee name
If any of these details don’t match the check-issue file, the system flags the check and notifies the company for approval.
A blend of automated technology + human control
One of the beauties of Positive Pay is that it couples automation with quality control by a real human: you. Every time the system flags a check that doesn’t match your files, you have the power to approve or reject the transaction.
Try Positive Pay with no commitment
While nothing is foolproof, Positive Pay is the best way for businesses to minimize check fraud risk and losses. Plus, it’s already included in all Cash Management accounts at Gateway Bank and simply needs to be turned on. Email Jennifer Stevens at jennifers@gcbaz.com to activate it and get started.