As a business, your relationship with your bank is a critical but often overlooked component of fraud prevention. A strong banking relationship plays a key role in the fight against fraud by fostering trust and communication between customers and their bank. Below are some methods by which your bank can empower your business to mitigate the ongoing risk of fraud.
Establish a good relationship with your banker
The first and most important component is the relationship with your banker. Make sure your business banker has a solid understanding of your business, your financial situation and your customers. Not only does this provide you with a feeling of support but allows the bank to more effectively detect unusual or suspicious activities that may indicate a fraud attempt.
Regular interaction and personalized service empowers customers to quickly report anything unusual, ensuring you and the bank can quickly act to mitigate any losses. Your banking relationship not only enhances security but also builds a cooperative defense against fraudsters.
Use online banking controls available to you
Learn about existing tools and controls that your bank has available through online banking. Implement Dual Controls, a process which requires two separate people to authorize or initiate a transaction or a change in user administration though online banking. Dual Controls allow users to split the duties of banking activity and allow a second set of eyes to review any transaction or administrative changes to the accounts.
Users can also set up Security Alerts on their accounts. These automated messages help you monitor your online bank account for when there are login attempts, checks clearing, ACH payments being debited, and more. By enabling Security Alerts, you can regularly monitor your account activity and potentially catch suspicious activity early on via text, email, or phone call.
Utilize Cash Management tools available through your bank
Consider utilizing Cash Management tools available through your bank. Positive Pay is a tool designed to offer protection against the threat of check and ACH debit fraud. Users are alerted to review any discrepancies to their issued check list or approved ACH vendors, catching them early. Any business that issues a high volume of checks, large number of transactions, higher balances or is concerned about fraudulent activity can benefit from the added value of knowing that only approved checks and ACH vendors will be posted to your account.
Contact your bank immediately when you suspect a fraud attempt
If you notice suspicious activity on your accounts, contact your bank immediately. This allows the bank to quickly act on the fraud attempt by taking the necessary steps, such as freezing account activity or launching an investigation.
A strong banking relationship is a critical component in the fight against fraud. A good relationship fosters trust, communication and collaboration between the business and their financial institution. By taking advantage of tools available through the bank, and maintaining regular interactions with your banker, you are setting your business up with another line of defense against fraud.
