Practice Safe Checks: Protect Your Business from Check Fraud

Even in an increasingly digital world, many small businesses still rely on paper checks to manage payments. But as check use declines, check fraud is taking off. Reports of stolen or altered checks have more than doubled since 2021, according to the U.S. Postal Inspection Service and the Federal Trade Commission.

Criminals have become more strategic—targeting business mail, stealing checks, and using sophisticated methods to access funds. Rivers Edge Bank is dedicated to helping you stay a step ahead by understanding the risks and following smart check safety practices.

How Check Fraud Happens

Fraudsters often use “check washing”, a process that removes ink from stolen checks using household chemicals. Once the details are erased, they rewrite the check—redirecting funds into their own accounts.

Even if your checks aren’t physically stolen, your account and routing numbers can be used to create counterfeit checks with modern printers and software. Each check you issue contains sensitive business information like your company name, account details, and signature—making awareness and prevention essential.

Smart Habits to Keep Your Business Payments Safe

Write with Permanent Gel Ink

Just as you’d never board a plane without fastening your seatbelt, never write a check with a pen that can be erased. Use permanent gel ink to prevent check washing and keep your payments secure.

Fill in All the Blanks

Avoid leaving open spaces that could be manipulated. Draw lines through any unused areas on the payee or amount lines.

Skip the Mailbox Drop

If mailing a check, deliver it directly to your local post office and consider sending it via Priority Mail. Business mailboxes and outdoor drop slots are frequent theft targets.

Monitor Accounts Frequently

Review your account activity often through online banking or the Rivers Edge Bank mobile app. Quick detection of suspicious transactions is key to minimizing losses.

Consider Implementing Positive Pay

Positive Pay offered by Rivers Edge Bank is a tool utilized to monitor checks that have been written and how they clear your account. It consists of you uploading the checks you have written into your Business Online Banking which then allows the system to flag any checks presented on your account that don’t match the uploaded check information. You then can view paid checks online and verify that endorsements match your intended payee and amount.

Switch to Secure Digital Payments

Whenever possible, use digital payment options like Bill Pay and ACH Origination through Rivers Edge Bank. Electronic transfers are faster, traceable, and safer than traditional checks.

Confirm with Recipients

After sending a payment, confirm that the check arrived and was deposited correctly—just as you’d double-check your flight details before takeoff.

Stay One Step Ahead of Scammers

Practicing safe check habits helps protect not only your business but your reputation and your customers’ trust. To learn more about recognizing and preventing financial fraud, visit BanksNeverAskThat.com or check out PracticeSafeChecks.com for additional resources and videos.

You can also explore more fraud prevention tips on our Cybersecurity page or reach out to us through our Contact page to learn about secure digital payment options for your business.