3 Best Practices You Can Use to Reduce Check Fraud

1. Print Your Own Checks

The absolute best way to reduce check fraud is to start printing your own checks. It’s common for smaller businesses to buy pre-printed check stock to avoid having to buy check paper and a MICR printer, but doing so leaves them open to check fraud. 

Think about it like this: if a criminal gains access to a pre-printed check, they’re ready to commit fraud.

So, how can you get started with printing your own business checks? It’s as simple as getting the right blank check paper, a reliable printer like a Lexmark MICR printer, and the necessary MICR toner. 

MICR printers are a requirement for business checks, and it’s a requirement for good reason. Deviations in the formula of MICR toner can result in a check being denied processing by the financial institution, which often affects fraudulent checks. 

The best way to protect against counterfeit checks is to have your own business check paper for printing checks, a MICR printer, and MICR toner. Combined, you’ll have a self-contained check printing solution that will reduce fraudulent checks. Here is a useful blog post we wrote on how to choose the best business check paper.

2. Have Strong Internal Procedures

A common cause of check fraud is unfortunately internal employees. Businesses must have strong internal procedures to help prevent the unauthorized printing of checks, prevent employee theft, and other fraudulent activity, within the business. Below are some internal procedures that you can adopt to reduce check fraud:



• Carefully review hiring procedures to prevent questionable people from being hired in the first place
• Review bank statements every month and specifically look for any regularities
• At least two people should be responsible for accounts payable
• All blank payroll check paper should be stored in a locked and secure area
• Review access control procedures and routinely change entry codes to the area containing the checks
• Hold surprise audits
• Have separate people open the mail and perform accounting
• The employee who handles billing should not make any deposits

Carefully reviewing your internal practices is a great way to discover internal check fraud. Unfortunately, business owners need to be aware that not all fraudulent activity comes from outside of the business.

3. Automate Bill Payment

Reduce how reliant your business is on checks by taking the time to put every bill possible on auto-pay. An auto-pay system will directly deduct the billed amount from your account without any need for paper checks. Auto-pay means fewer checks, and that means fewer opportunities for fraud.

If you have a service that doesn’t offer an auto-pay feature, your bank may have an option to have a check sent out directly to the vendor from the bank. Even though a check is still being printed and sent, removing it from your facilities further reduces the chance of check fraud.

A Multi-Faceted Solution is Required to Prevent Check Fraud

Your business needs to enact a multi-faceted approach to fighting check fraud. Check fraud can take many forms, whether it’s bad actors trying to forge checks, internal employees fraudulently printing real checks or anything in between. 

Take printing your business checks into your own hands, create strong internal procedures that reduce the opportunity for employee fraud, and automate your bill payment. With these three best practices in effect, you will have taken important steps towards eliminating check fraud. In our FAQ section about preventing check fraud, we also answer some other questions related to check stock, printers, software and hardware we use for check fraud prevention

Have questions about printing your own business checks? Printerm is here to help. Get in touch with our team today to learn what options you have available to you.