October 15 — Bobak's Signature Events, Woodridge
Fraud & The Bank Account — Is Your Company Safe?

According to Speaker Terri Ryan Schlossberg, vice president of cash management/commercial banking with Citibank, check fraud has grown significantly in recent years — due in large part to advances in technology which make this kind of fraud easier to pull off!

It's more important than ever now for everyone to shred their financial records instead of just throwing them in the garb age..

"Crooks are going through the trash and [helping themselves to] your MICR numbers," Schlossberg said. And once they've got those numbers, all they need is a good color printer or copier. Because as the technology has improved so has the sophistication level of the criminal. Many have learned how to 'fly under the radar' simply by writing checks for smaller amounts that won't attract as much attention from tellers and accountants. And with transportation being what it is, by the time the fraud is reported or the loss has surfaced, the perpetrator is long gone.

Banks used to be totally responsible for fraud losses, but today there's been a significant change in how banks handle customer payments and how account holders manage their accounts. Laws have been changed and now there exists a shared risk, where both banks and account holders have more clearly defined responsibilities for minimizing risks.

Both parties must exercise what the laws call "ordinary care" and are expected to follow "reasonable commercial standards" when handling checks. A state of comparative negligence exists and should a matter go to court, the loss may be divided between the bank and the account holder based on one's failure to exercise ordinary care.

Preventing fraud can be as simple as buying that shredder and
• purchasing check paper with built-in security features
• maintaining tighter internal controls over who and when accounts are reconciled
• changing from paper to electronic payment systems
• instituting blocks and filers on ACH debits

Protect your business and your personal finances by utilizing the relationship you have with your partners — your bank, your accountant, your check printer. They are your resources and can help you learn the latest ways to combat fraud — and how to select a program to match the needs of your business.

FCAI Contractor Membership provides for two(2) complimentary attendees at monthly meetings. Utilize your membership and attend next month's meeting!