TIPS FOR BUSINESSES
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Although there has been a lot of attention recently on individual victims of fraud, there has been little focus on businesses that are the victims of fraud.  One of the most widespread types of fraud perpetrated against businesses is check fraud.  There are many ways in which this crime is committed.  In some cases, the offender purposely offers a check for a product or service knowing that the account has insufficient funds or has been closed.  Sometimes, the account is nonexistent and the information on the check is completely false---with today's technology, some individuals go so far as to create a completely realistic check with their home computer; once the perpetrator receives the good, they disappear before the business realizes that the check is just a worthless piece of paper. Sometimes checks are stolen and chemically "washed" so that false information can be added  and appear to be original. Legitimate checks can also be stolen and forged.  Credit cards can also be stolen and the receipt forged.

Businesses should be aware that perpetrators of fraud are very creative and often very convincing.  The only defense is to have, and follow, established procedures and know what to do when a crime is committed.

• Set guidelines about the types of checks that your business will accept: personal, traveler's, payroll.  The personal information should be printed on the check, not written in. Some businesses do not accept "starter checks."  Whatever policy you establish, make sure all employees follow it and post it clearly in your establishment so that customers know it as well.

• Always examine the check carefully.  Compare the check with identification. 

• Compare signatures on the check or credit card receipt with the signature on the driver's license or credit card. Be wary of people who seem to take a long time to sign the document or try to distract you while signing.

• Compare the identification with the person presenting it.

• Consider using a service that verifies checks. Systems are now available that automatically withdraw funds from the customer's accounts electronically.  This allows you to know immediately if they in fact have these funds available.

If you are a victim of fraud, send a certified letter to the individual giving them 15 days to respond to you.  If they do not respond to you, you can usually seek a civil and/or criminal charge against them.  Keep all paperwork related to the transaction and report the fraud to your bank and local law enforcement agency as soon as possible.