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How to Detect Fraudulent Checks Before They Bounce

The Challenge

We had an issue of fraudulent checks showing up. It happened last February and occurred in two different accounts: one of the buildings we managed (with a $25,000 loss), and our business account (for about $15,000).

The Solution

We started investigating and uncovered the fraud by a check verification software system that verifies whether the checks are good to be cashed or not. The checks came in and the bank realized that these were not the real checks, so a bank representative got in touch with us. We told them we had never issued the checks and they started investigating. I was advised to go to the local police precinct, which I did, to file a police report. We eventually got our money back, but it took us about a month and a half to two months.

The Lesson

Vigilance and new software can help you protect your revenue from fraud. As the old saying goes: “When money talks, people should not be deaf.”

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