Check Fraud Prevention | Adirondack Bank

Counterfeits

Counterfeit checks are the largest source of fraudulent checks
Today’s criminals use various desktop publishing software applications to copy valid checks
Selected information on these checks is changed while valid check components remain on the item lending themselves to their authenticity
Almost any kind of check can be counterfeited (i.e. official bank checks, government checks and personal checks)

Usually involves the use of legitimate checks with a forged account holder’s signature
Many forged signatures are perpetrated by a person known to the account holder; however, other instances involve the outright theft of checks
Forged endorsements often involve the theft of valid checks that are then cashed and/or deposited by an individual other than the payee
Our customers have fourteen (14) days from the date that they receive their statement to contact the Bank regarding a forged signature

Altered checks occur after a legitimate customer issues a valid check
The check is then altered in some form in order to change certain fields such as the date, amount or payee name
This new information is entered or added directly onto the check; for example, the written check amount can now be increased resulting in an overpayment of that check

Checks are written off of a closed account
These checks are primarily passed at retail stores or other businesses.
Customers need to destroy all of their unused checks from any closed account relationship in order to mitigate this type of fraud loss

Perform daily account monitoring
Review bank statements regularly
Sign up for and utilize the Bank’s Positive Pay service
Perform timely account and statement reconciliation
Utilize ADK Bank online banking tools and applications i.e. Notifi
Move to electronic payment methods (ACH) for vendor payments, expenses, etc.
Fully read and understand the Bank’s terms and conditions and disclosures for all accounts
Close any compromised bank accounts and move to a new account relationship
Use care when using or sending an amount for refunds as these types of checks are commonly used for check fraud

Perform daily account monitoring
Review bank statements regularly
Perform timely account and statement reconciliation
Utilize ADK Bank online banking tools and applications i.e. Notifi, alert
Do not give your checking account information to anyone you do not know
Fully read and understand the Bank’s terms and conditions and disclosures for all accounts
Close any compromised bank accounts and move to a new account relationship
Report any lost or stolen checks immediately
Properly safeguard and/or dispose of both new and cancelled checks
Move to electronic online bill payment methods