Stay Vigilant Against
Check Fraud

Check fraud continues to be a growing concern for small businesses. Whether you’re issuing checks for payroll, paying vendors, or managing operational expenses, understanding the risks and taking proactive steps can help protect your business from financial loss and reputational harm.

Here are key practices to help you stay ahead of evolving threats:

Monitor for Altered or Washed Checks

Criminals may intercept checks and use chemical solutions to “wash” the ink, allowing them to alter the payee or amount. To reduce this risk, use pens with permanent ink and avoid placing outgoing checks in unsecured mailboxes. Review cleared checks regularly to ensure they match your records.

Be Cautious of Unexpected Checks

Receiving a check in the mail that you weren’t expecting — especially from an unfamiliar sender — should prompt a closer look. These checks are often part of scams designed to trick recipients into depositing fraudulent funds and returning a portion of the money.

Watch for Urgent Requests to Deposit and Transfer Funds

Scammers often create a false sense of urgency, pressuring businesses to deposit a check and quickly send money elsewhere. Legitimate transactions rarely require immediate action without proper verification. Take time to confirm the source and purpose of any unexpected payment.

Verify Suspicious Communications

Be cautious of unsolicited calls, emails, or texts asking you to “verify” a check or account information. These messages may appear legitimate but are often phishing attempts. Always verify the source independently before sharing any sensitive details.

Educate Your Team

Your employees are a critical line of defense. Make sure they understand how to handle checks securely, recognize red flags, and follow internal protocols for financial transactions. Ongoing training can help reinforce best practices and reduce risk.

Build a Relationship with Your Bank

Community banks understand the unique challenges small businesses face. Establishing a strong relationship with your local banking team can provide valuable insight and support when navigating fraud prevention and financial security. By staying informed and implementing these best practices, you can significantly reduce your exposure to check fraud. Vigilance, education, and trusted partnerships are key to protecting your business and the community it serves.