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Steps to Prevent Fraud

Quick guidance in safe check-handling and other fraud prevention techniques.

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October 01, 2004 — CSO — Steps to Prevent Fraud

  • Have financial statements mailed to home or a separate location.

  • Reconcile statements within 10 days of receiving them.

  • Secure check stock, check on it periodically.

  • Use the banking services Positive Pay or Reverse Positive Pay.

  • Conduct background checks on employees.

  • Trust, but verify.

Steps to Recover from Fraud

  • Alert banks, put a stop on any questionable transactions.

  • Begin a documented audit immediately.

  • Seek professional assistance from PIs and accounting investigators.

  • Do not fire suspects; try to keep in contact with them.

  • Change locks.

Read more about fraud prevention in CSOonline's Fraud Prevention section.

Other stories by Scott Berinato

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