With the rise in theft cases, the United States Postal Service (USPS) is urging Americans to exercise caution when using paper checks -
In the previous year, Americans processed a staggering 3.4 billion checks, making it crucial to take extra precautions when sending or receiving checks via mail.
In 2022, mail theft rates have more than doubled, prompting the USPS to remind Americans to reconsider their payment methods.
While many businesses are encouraging payers to switch to online payments, USPS assures that the safest way to pay is through credit card payments, which offer the greatest legal protection and ample time to resolve any potential transaction issues.
Despite the rise of digital payments and mobile banking, many businesses still rely on paper checks. While this traditional payment method is convenient and widely accepted, it also poses a greater risk of fraud and security breaches, as highlighted by the USPS.
It's important for businesses to be aware of the potential risks and take appropriate precautions to protect themselves and their finances. As a business owner or a tech-savvy professional, it's crucial to educate yourself and your team on how to exercise precaution when using paper checks for your operations.
In this article, we'll delve into the most effective strategies and potential pitfalls to steer clear of when managing paper checks for your business, so that you can feel more confident about handling your finances in a secure and fraud-resistant manner.
1. Keep Your Checks Secure
The first rule of precaution when using paper checks is to keep them in a secure place. Checks should never be left out in the open or accessible to anyone who shouldn't have them. Keep them in a locked cabinet or drawer and limit the number of employees who have access to them. Also, make sure to shred any unused or voided checks to prevent them from falling into the wrong hands.
2. Use Checks with Security Features
When ordering checks from your bank, opt for ones with security features such as watermarks, microprinting, and holograms. These features make it harder for fraudsters to counterfeit your checks. Additionally, don't use pre-printed checks with your signature and account number on them as they can be easily manipulated. Instead, use blank checks and sign them right before they are issued.
3. Double-Check the Payee and Amount
Before signing and issuing a check, double-check that the payee and the amount are both correct. One of the most common forms of check fraud is altering the payee name or the amount, so it's crucial to be thorough in this step. If you're ever in doubt about a check or a payee, don't hesitate to verify the information with the person or organization before issuing the payment.
4. Keep a Record of Your Checks
Keeping a record of the checks you write and the ones you receive is essential for tracking your expenses and detecting any fraudulent activity. Use a check register or a sophisticated accounting system to keep track of your check transactions and reconcile your bank statement regularly. This way, you can quickly identify any discrepancies and prevent any losses.
5. Educate Your Employees
Finally, don't underestimate the power of education when it comes to exercising precaution with paper checks. Train your employees on the best practices for handling and issuing checks and make sure they understand the risks of not following them. Hold regular meetings to review your policies and procedures, and stay up-to-date on the latest developments in check fraud prevention.
6. Switch to Online Payments
The era of paper checks is slowly fading away with the accelerated adoption of online payments. Online payment systems have made it possible to make transactions anytime, anywhere. There's no more need to write out a check, find an envelope and stamp, and then wait for days for the payment to clear. Instead, online payments can be made instantly, and the funds are transferred directly to the recipient's account. Online payments also eliminate the risk of lost or stolen checks, which can be a hassle to replace.
Choosing online payments means less hassle, more security, and more convenience. So why not make the switch today? When you're ready to embrace online payments, our trusted team's ready to make it happen.
Discover end-to-end financial automation with WisePay, which seamlessly works together with Wise-Sync, to automate every step of the invoice lifecycle - get in touch with our trusted team today to find out more.
