Deeper understanding leads to better outcomes
Types of Fraud
Many types of fraud exist. Some of the most common types of fraud include check fraud, wire fraud and ACH fraud. Watch the videos below to learn about how each type of fraud is perpetrated, red flags and best practices.
Visible in CMS ONLY.
Check Fraud
Check fraud is one of the largest challenges facing financial institutions.
Best practices to help prevent check fraud:
- Order checks from reputable sources and keep them stored safely.
- Reconcile accounts regularly.
- Enroll in Positive Pay services.
- Use ACH as a payment method, if possible.
- Close compromised accounts.
- Report suspicious activity immediately.
Wire Fraud
An increasing number of companies are falling victim to wire transfer scams. SMBC customers, particularly those with international business dealings, are prime targets.
Best practices to help prevent wire fraud:
- Secure your bank (and email) accounts with strong passwords and enable multi-factor authentication (MFA).
- Be wary of unexpected requests to wire money urgently or any requests to change payment instructions.
- Verify the source and authenticity of requests to move money by calling a known phone number on record before taking action!
- Educate yourself on business email compromise (BEC) and other tactics to used to commit wire fraud.
- Report suspicious activity immediately.
ACH Fraud
ACH fraud can result in direct financial losses and leave businesses with a limited time frame to report fraud and attempt to recover funds.
Best practices to help prevent ACH fraud:
- Monitor account activity regularly.
- Use strong, unique passwords and enable multi-factor authentication on online banking accounts.
- Limit those who have access to online banking credentials.
- Be cautious of unsolicited emails or calls asking you to verify or provide sensitive information.
- Educate yourself on how to recognize “phishing” emails and other tactics used to commit payment fraud.
- Consider placing an ACH Debit Block to help protect your account from unauthorized ACH debits.
- Report suspicious activity immediately.