Cheque fraud is among the oldest and most common forms of financial crime. Even with the advances of technology, cheques still account for billions of payments each year, making them a prime target for fraud. In 2011 a report by the Financial Executives International (FEI), estimated that cheques fraud costs North American businesses $20 Billion CAD annually. The most common methods of cheque fraud includes counterfeit, forged and altered. Other more sophisticated types are deposit fraud, transaction instruction fraud and payroll fraud among others.
In addition, fraud has way more than just the financial costs. It impacts reputation, consumes valuable management time to rectify the fraud and overall can lower company morale. Furthermore, because 85% of the most serious fraud incidents are committed by insiders, it can erode trust within the company.
How You Can Protect Against Cheque Fraud
After reviewing lots of material on cheque fraud, by far the number one suggestion is to — reduce the use of cheques in favour of electronic payments, such as direct deposit or pre-authorized debit. Going electronic is not only secure, but it resolves all the other fraudulent concerns associated with cheques such as mail can be intercepted, cheque stock can be compromised and the risks of laser printing cheques without toner anchorage to permanently bond toner ink into the paper, to name but a few.
Choosing Telpay
By choosing Telpay’s electronic payment service, you immediately reduced your risk of cheques fraud. Telpay has extensive control for security and safeguarding. Features include:
• Single / Dual Authorizations
• Full Audit Training including a Guide for Auditors
• Strong Reporting
Doesn’t it feel better to know that with Telpay you are protected against cheque fraud. Peace of mind, yet another very good reason to choose Telpay.