JP Morgan recently released a new white paper that may be helpful to you entitled – Payments Fraud: How It Happens And What You Can Do To Protect Your Organization. It’s quite timely too. You’ll need to give up your email address, but the report is quite informative. Here are some of the best practices they share:
- Check Fraud. To prevent check fraud, take practical defensive measures such as securing check stock and implementing dual control around key treasury functions such as check issuance and account reconciliation. Using high-quality check stock with built-in security features will reduce the likelihood of check manipulation. Industry tools such as Positive Pay reduce the possibility of fraudulent check payment.
- ACH Fraud. To minimize ACH or electronic payments fraud, sensitive information needs to be protected. Masking account numbers and Tax ID numbers in your written correspondence, and utilizing encrypted email for confidential, nonpublic information are both critical steps to reducing fraud. ACH debit blocks or ACH debit filters guard against unauthorized ACH debit transactions.
- Corporate Credit Card Fraud. Misuse of corporate payment cards by employees is not typically considered fraud by card issuers. The company is usually responsible for any loss, so organizations must have prevention programs in place. Protective controls, such as setting transaction limits and monthly limits for all cardholders, as well as blocking unauthorized vendors will greatly reduce misappropriation. Companies should also use Web-based payments tools that provide enhanced reporting and real-time visibility into spending.
- Phishing Fraud. Phishing spammers establish fake emails and Web sites in an attempt to steal security information, such as login names, passwords and other personal data. Organizations should ensure that browser and security software information is continually updated, and that spam blocking filters and surfing block controls are maintained companywide. Privacy locks should be utilized to restrict access to sensitive data.
Hop on over and pick up your copy of the report now.