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Preventing fraud

Some checking account fraud is preventable. Here are steps security experts say will make it less likely that you'll become a fraud victim.

By HELEN HUNTLEY
Published July 25, 2005

Steps for businesses and consumers

*Keep blank checks in a secure place.

*Safeguard ATM and online passwords.

*Shred statements and checks.

*Use a locked mailbox or pick up mail immediately after delivery.

*Drop outgoing mail in a postal service box.

*Regularly review statements or online transactions.

*Beware of anyone offering a check for more than what's owed and asking you to refund the difference.

*Close your account if a check is lost or stolen.

*Do not give account information in response to e-mails or phone calls.

*Use automatic electronic transfers for recurring bills and debit cards for purchases.

*Consider using online bill payment.

Steps for businesses to consider

*Sign up for "positive pay" service so checks can be matched against your files before payment.

*Use a master account for deposits and subaccounts to issue checks, transferring money to subaccounts only as needed.

*Have different employees write checks and reconcile accounts.

*Use direct deposit and debit cards instead of checks for payroll.

*Limit access to online banking. Change passwords when employees leave the company.

Sources: U.S. Secret Service, Certegy Inc., Wachovia Bank.

[Last modified July 23, 2005, 17:47:02]