Enjoying what you’re reading? Sign up now.

Subscribe
Search

Catch Cheque Fraud Before it Catches You

Checque Fraud Protection for Dealerships
Article Highlights:

  • Recognize common types of cheque fraud.
  • Establish a careful process to help stop cheque fraud.

Just one fraudulent cheque can cost you a large amount of money. Here are three tips to help you avoid being a victim of cheque fraud:

1. Recognize Common Types of Cheque Fraud

  • Counterfeiting – Fabricating or duplicating a cheque.
  • Alteration – Modifying the amount or payee on a legitimate cheque.
  • Forgery – Stealing and then endorsing cheques.
  • Paperhanging – Writing cheques against a closed account.
  • Cheque Kiting – Creating fraudulent balances by passing cheques between two or more accounts and using “the float time” to obtain unauthorized credit from each bank before a cheque clears.

2. Avoid Risks in Your Dealership

  • Lock up your cheques, deposit slips, bank statements, and cancelled cheques.
  • Set your security restrictions to limit access to information, systems, accounts, and records to appropriate employees.
  • Educate your employees about company policies and the consequences of fraud.

3. Establish a Careful Process to Help Stop Cheque Fraud

  • Submit the cheque-issue data file from ERA in your bank’s specific format and electronically transfer the file to your bank on a daily basis. Or you can automate this process with Reynolds Positive Pay, an integrated tool which would eliminate the risk of missing cheques and rekeying errors.
  • Most banks will compare all cheques presented for payment with the data from your cheque-issue ERA file.
  • If they find an exception, the bank will notify you for cheque verification.

How to Catch Cheque Fraud

Follow these steps to help you avoid being a victim of cheque fraud.

Share this Article

Driven by our 150-year legacy of product innovation and customer service, our vision for the future is to help dealers transform every aspect of their business and the customer experience.

Related Articles:

One of the problems you face is time. There isn’t enough of it, it moves too quickly, where did it even go? Here are three ways

In today’s fast-paced automotive market, the journey from online browsing to in-store transactions has become increasingly complex. Customers expect a seamless experience where the information

Winter has melted away, and we are moving on to the next season. Spring means warmer weather, flowers blooming, and the start of baseball season.

Imagine you’re navigating a winding road, guiding your dealership toward success. Along the journey, you encounter a few bumps – discrepancies in payments and information