Fraud prevention checklist

Help protect your organization against fraud.  

Tags: Asset protection, Fraud protection, Risk mitigation, Security
Published: February 24, 2020

Protect your organization through established controls and scheduled periodic reviews.

Use this checklist to help maintain a strong fraud prevention program. 

Fraud prevention checklist
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Internal procedures and controls

Establish fraud prevention best practices and responsibilities

  • Educate personnel on the importance of safeguarding sensitive information, following established procedures and preventing fraud losses.
  • Ensure your staff understands they have the most important role in preventing fraud losses.
  • Refresh training regularly.

Establish clear division of duties and access

  • Separate account receivables and account payables functions and processes.
  • Limit financial data access only to employees if there's a business need.

Ensure procedures are being followed

  •  Conduct surprise audits.
  • Review transactions before they leave the company.
  • Verify out-of-pattern payment instructions from internal employees.

Use a second communication channel to validate payment related requests, including:

  • Payment requests from customers and company personnel, including senior officials.
  • Requests from vendors to change payment instructions.

Update signing authority

  • Review and update bank signature cards routinely.
  • Remove executive signatures from your annual report to prevent illegal scanning and use.

Online fraud protection and controls

Protect your workstations

  •  Update operating system, software, anti-virus and malware protection.
  • Limit personal email and Internet use on computers used for online banking activities.

Prevent malware infection

  • Use caution when downloading applications, documents, installing software, opening email attachments.
  • Beware of download requests from pop-ups or advertisements.
  • Consider using an anti-malware application, as well as a firewall.

Safeguard your communications and confidential data

  • Avoid using email to send confidential information.
  • Truncate all but last four digits of account numbers in communications.

Establish separate controls for your business online banking application

  • Require approvals to authorize ACH, wires, remote deposits and adding users or changing user profiles.
  • Ensure initiators and approvers use different workstations.
  • Require use of security tokens, with strong authentication, for payment applications.
  • Review employee access privileges and limit system administrative rights
  • Ensure user access and entitlements are up to date and accurate.
  • Ensure users know their system webpages and functionality, so suspicious content is easier to spot and is reported quickly to the bank.

Monitor account balances and activity daily

  • Report any suspicious activity immediately to your bank and alert your users.
  • Activate notification features in online banking applications.

Paper check controls

Check approval practices

Preauthorize high dollar value checks before the checks are written.

Do not sign checks without the recipient and amount information completed.

Review your check stock controls

  • Select a highly qualified, established check vendor.
  • Use a different style of checks for each account for easy recognition.
  • Incorporate security features into check design.
  • Store blank checks and check printing equipment securely.
  • Limit the working supply of checks removed from the secure area.

Check processing controls

  • Monitor check orders to ensure receipt of exact quantity.
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As payments fraud continues to rise, Contact U.S. Bank to learn how to protect your organization and prevent payments fraud.


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