Fraud prevention
Guidance for preventing fraud
Fraud risk looks different depending on your role. Clear accountability and consistent habits across the organization help reduce the likelihood that suspicious activity goes unnoticed.
For account reviewers and treasury teams
Daily visibility is one of the strongest defenses against fraud. Small anomalies are often the first sign of a larger issue. Cash Management customers, in particular, are responsible for daily monitoring of transaction clearing accounts. These accounts are used to disburse loan funds and make loan payments and are not insured. Ongoing diligence is critical.
Key practices
- Review account activity and reconcile transactions every business day.
- Investigate and report unauthorized or unusual activity immediately.
- Monitor exception items closely and resolve them within required timeframes.
- Regularly review user access to ensure permissions remain appropriate.
For check handlers and payment processors
Check fraud often succeeds because of weak physical controls or delayed review. Limiting the number of people who touch checks reduces risk and improves accountability.
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Key practices
- Store blank check stock and canceled checks in secure locations with limited access.
- Keep outgoing checks secure before mailing and use locked mailboxes or post office boxes when possible.
- Reconcile check activity daily to identify unauthorized items quickly.
- Consider electronic payment alternatives such as ACH or wire payments when appropriate.
For transaction originators and payment approvers
Payment fraud frequently exploits trust and urgency. Verification is essential even when requests appear routine. Requests to change vendor payment instructions or approve high‑value or out‑of‑cycle payments should always be confirmed verbally with a known contact.
Key practices
- Independently confirm any request to send funds or disclose confidential information.
- Verify requests using a known phone number or contact method, not information included in the request.
- Be cautious of messages that feel unusual in tone, timing or urgency.
- Closely review sender email addresses for subtle domain changes or character substitutions.
For leadership and management
Strong fraud prevention starts with expectations set at the top. Regular reviews of processes and access help prevent small gaps from becoming larger exposures.
Key practices
- Train all employees, not just finance staff, to recognize fraud warning signs.
- Encourage verbal confirmation of unusual payment requests, even those appearing to come from executives.
- Separate duties across payment initiation, approval and release.
- Implement dual approval and two‑step review processes for payments.
- Ensure departing employees’ access to systems and accounts is removed immediately.
For technology and systems oversight
Technology hygiene plays a critical role in preventing account takeover and malware‑based attacks. Even well‑designed controls can be undermined by compromised devices.
Key practices
- Ensure computers and devices have up‑to‑date antivirus and firewall protection.
- Apply operating system and software updates regularly.
- Limit administrative privileges for daily computer use.
- Use dedicated computers for online banking when possible.
- Avoid accessing banking systems on public computers or public Wi‑Fi.
For everyone
Fraud prevention is strongest when everyone is alert and informed. If something seems off, slow down and verify before acting.
Key practices
- Never share account numbers, passwords or personal information by email, phone or text.
- Be cautious of unexpected messages requesting action or verification.
- Avoid clicking unknown links or opening suspicious attachments.
- Use strong, unique passwords and protect answers to security questions.
- Be thoughtful about what information is shared on social media.
When to escalate concerns
If you encounter suspicious activity, unusual requests or technical issues that cannot be explained, report them immediately. Early action can limit loss and prevent further exposure.
Fraud prevention insights, delivered
Fraud Wise shares brief, practical guidance to help you recognize risks, verify requests, and act quickly when something doesn’t feel right.
