Fighting Paper Fraud in Your Business

Posted by Busey Bank on Jul 3, 2024 10:00:00 AM
Busey Bank

In an age where the majority of transactions are conducted at the click of a button, it's easy to overlook the persistent threat of paper fraud. In fact, according to the United States Treasury Department, check fraud has risen over 385% since the start of the Covid-19 pandemic.

A graphic image of a magnifying glass over a piece of paper.

As your trusted financial institution, we understand the importance of safeguarding your business against paper fraud. In this blog post, we'll explore effective strategies to combat paper fraud and protect your business's assets and information.

  1. Stay Informed. The first line of defense against paper fraud is awareness. Educate yourself and your employees about common types of paper fraud, including check forgery, alteration and counterfeit checks. Stay informed about the latest fraud trends and techniques used by fraudsters to exploit vulnerabilities in paper-based transactions. Organizations like the American Bankers Association regularly share tips and resources for preventing fraud.
  2. Implement Security Measures. Implement robust security measures to protect your business against paper fraud. Invest in high-security checks with features such as watermarks, microprinting and security threads that are difficult to replicate. Store blank checks in a secure location and limit access to authorized personnel only. Consider using tamper-evident envelopes for mailing checks to prevent interception and tampering.
  3. Monitor Account Activity. Regularly monitor your business's bank accounts for any suspicious activity. Set up alerts for unusual transactions, such as large withdrawals or deposits, and review account statements promptly. Prompt detection of fraudulent activity can help minimize losses and prevent further unauthorized transactions.
  4. Verify Signatures. Train your employees to verify signatures on checks and other paper-based documents diligently. Encourage them to compare signatures against known signatures on file and look for any discrepancies or signs of forgery. Implement a dual-control system for signing checks, requiring approval from multiple authorized signatories for significant transactions.
  5. Secure Check Stock. Safeguard your supply of blank checks to prevent unauthorized access and potential misuse. Store check stock in a secure location with limited access and implement inventory controls to track check usage. Routinely reconcile check inventory to identify any discrepancies or missing stock.
  6. Train Employees. Educate your employees about the importance of vigilance and adherence to security protocols when handling paper-based transactions. Provide regular training on fraud prevention techniques and procedures, emphasizing the role that each employee plays in safeguarding the business's assets.
  7. Stay Updated on Fraud Trends. Fraudsters are constantly evolving their tactics to circumvent security measures. Stay updated on emerging fraud trends and regularly review and update your fraud prevention strategies accordingly.
  8. Report Suspicious Activity. Encourage employees to promptly report any suspicious activity or concerns related to paper-based transactions. Establish clear communication channels for reporting fraud or security incidents and provide guidance on the appropriate steps to take in case of suspected fraud.
  9. Utilize Busey’s Positive Pay Solutions. Consider enrolling Busey’s Check Positive Pay or ACH Positive Pay Solutions. With Check Positive Pay, your company submits a file of checks issued, and we compare incoming presentments to your file for accuracy. Any discrepancies are flagged for review, reducing the risk of check fraud. ACH Positive Pay gives you the ability to allow only authorized companies or organizations to debit or credit your account, further protecting you from fraudulent transactions.

Partner with Busey for Comprehensive Fraud Protection Solutions

As your trusted financial partner, Busey is dedicated to helping you mitigate the risks associated with fraud and financial crime. Our Treasury Management team brings a wealth of expertise and experience to the table, offering tailored solutions designed to enhance your organization's security. To learn more about the products and services we provide, visit

If you are already a Busey customer, please contact your Busey Relationship Manager or Treasury Management Specialist with any questions or for additional details on our fraud protection solutions. You can also check out Busey’s Fraud Prevention FAQs and Fraud Prevention Toolkit in order to learn more about how to protect yourself, your information and your business from fraudulent activity.

Topics: Business, Fraud

Join the online Busey community and leave a comment below!

Busey Bank knows Your Money Matters

Money Matters, a financial blog designed to provide insights, resources and tips from the financial experts at Busey, covers a variety of topics to help you realize your financial goals. Topics are focused on Busey's five lines of business—personal, mortgage, commercial, cash management and wealth management. 

New content is added regularly to deliver up-to-date information in today's evolving financial landscape. We encourage you to subscribe to Money Matters to ensure you don't miss helpful tips and how to's as they become available.

Subscribe Here!

Recent Posts