Tag Archives: check fraud


Protect Your Organization from Payment Fraud Risk

Do you know how to build a resilient organization, ready to handle the growing threats of payment fraud? Payment fraud risk is a very real threat to organizations. One slip-up in processing an ACH or wire transfer could cost millions of dollars and result in significant embarrassment for finance teams. If you have money and … Read More

Is Your Business at Risk for Check Fraud?

How businesses can protect against fraudulent check scams by using Positive Pay. With all the recent press regarding rising ACH payment fraud, it is easy to forget that check fraud remains a significant threat to businesses. What is check fraud? According to the National Check Fraud Center check fraud includes forgery, counterfeiting and altering, paperhanging … Read More

Protect Your Organization from Payment Fraud Risk

Do you know how to build a resilient organization, ready to handle the growing threats of payment fraud?


Payment fraud risk is a very real threat to organizations. One slip-up in processing an ACH or wire transfer could cost millions of dollars and result in significant embarrassment for finance teams. If you have money and secure data, no matter your company size or industry—you are at risk.

What is Payment Fraud?

Payment fraud is any type of false or illegal transaction by a cybercriminal. It’s important for finance professionals to understand what motivates people to commit payment fraud so they can better assess risk and assist in implementing preventative and protective measures.

Despite the significant efforts being made by the financial services industry, risk and fraud mitigation vendors, and the global law enforcement community, merchants are reporting that their fraud losses have risen in the past year.

According to an Experian blog that highlighted its 2019 Global Identity and Fraud report, which surveyed 1,000 businesses in 21 countries, over half of businesses reported that their fraud losses had grown in the past 12 months compared to a year earlier. Additionally, 27% of businesses stated that losses had stayed the same over the same time period.

Additionally, in a recent Kroll survey, 84% of financial professionals surveyed reported at least one incident of payment fraud, which is up from 82% reported in 2016 and 61% reported in 2012. On top of that 86% of respondents reported at least one cyber incident or information data theft, loss, or attack within the last twelve months.

Recent Payment Fraud Incident

Manor Independent School District in Texas recently fell victim to a phishing scam that cost millions. Phishing scams are emails designed to trick users into handing over personal information. The school district is expected to recover at least, and more of the stolen money could be recovered as the investigation into the scam continues.

“Manor ISD has developed additional internal security protocols with a variety of training and testing efforts designed to continually educate staff, which assure that the protocols are being followed,” the ISD said in an updated statement. It added that police are continuing to chase down leads “in order to bring this case to a swift and legal conclusion.”

How can you protect your organization against payment fraud risk?

Paymerang partnered with Kaplan, one of the world’s largest and most diverse education providers, to share more about the risk of payment fraud. During the video, Paymerang CEO, Nasser Chanda, addresses the risk of payment fraud and what organizations can do to shield their organizations from fraud.

Is Your Business at Risk for Check Fraud?


How businesses can protect against fraudulent check scams by using Positive Pay. With all the recent press regarding rising ACH payment fraud, it is easy to forget that check fraud remains a significant threat to businesses.

What is check fraud?

According to the National Check Fraud Center check fraud includes forgery, counterfeiting and altering, paperhanging and check kiting.

For a business, forgery typically takes place when an employee issues a check without proper authorization. Criminals will also steal a check, endorse it and present for payment at a retail location or at the bank teller window, probably using bogus personal identification. Counterfeiting can either mean wholly fabricating a check or simply duplicating a check with advanced color photocopiers. Alteration primarily refers to using chemicals and solvents such as acetone, brake fluid and bleach to remove or modify handwriting and information on the check.

When those fraudulent checks are cashed, funds are pulled directly out of your bank account—causing hours of frustration as you work to recover the funds.

According to a recent Pymnts article, check fraud, or the attempt to perpetrate it, has gone up from $8.5 billion in 2016 to $15.1 billion in 2018. Also, it makes up 60 percent of all attempted fraud against U.S. bank deposit accounts, according to a survey released by the American Bankers Association.

How can I protect my business from check fraud?

Luckily, stopping business check fraud is simple and easy, if you enable Positive Pay on your account.

Positive Pay is akin to giving your bank a copy of your check register so that the bank knows what checks you have written on your account. When checks arrive at the bank to clear, the bank compares the incoming check against your check register. You can have the bank compare several fields including the check number, the amount on the check, and the payee. If the bank identifies a discrepancy, they will alert you for a manual review, which is easily completed in a few minutes by your accounting team.

Optical character recognition (OCR) technology isn’t perfect, so banks will occasionally report false positives when one of the fields are mis-read. However, that small inconvenience will be quickly offset when the application stops its first fraudulent check.

Recently, Paymerang has seen a rise in the number of fraudulent checks being presented on checking accounts. Each of those attempts have been thwarted by the Positive Pay gatekeeper on our account. An analysis of the rejected checks shows that the fraudsters are quite sophisticated and clearly using a photoshop type technology to replicate our actual checks. Without the automated review, it is quite possible one of the counterfeit checks would go un-noticed and approved for payment.

In addition to other payment methods, Paymerang makes thousands of payments by check each week. We are firm believers in the benefits of leveraging technology to provide layered protection for our clients. If your organization is paying vendors by check and operating without a safety net, we would encourage you to either talk to your banker or seek out assistance from a company specializing in an e-payables solution. Not only can they help you protect against check fraud, but they can also help move your payments to faster, safer, digital payment methods.