by Corpay Cross-Border Solutions
It may come as a surprise that check fraud remains a significant threat to businesses. However, a recent report from the Associated Press highlights the escalating cases of check fraud, leaving companies vulnerable to financial losses and reputational damage.
Discover the reasons behind this surge in fraudulent activity, the impacts it’s having, and what you can do to safeguard your organization.
The Surge in Check Fraud
Check fraud takes on various forms, including counterfeit checks, forged signatures, altered payees, and fraudulent checks created using stolen or fabricated bank account details.
Since the pandemic, increasingly sophisticated criminal networks have targeted government relief checks, threatening individuals and businesses. Unfortunately, this problem has continued to escalate, prompting postal authorities and bank officials to issue warnings against mailing checks.
These criminals infiltrate post office distribution centers and create fictitious businesses or IDs to deposit the checks. They also target companies that rely heavily on manual check processing systems, exploiting the lack of robust verification measures.
The Impacts of Check Fraud on Businesses
The surge in fraud instances is overwhelming investigators, causing prolonged delays for victims attempting to recover their stolen funds.
Additionally, criminals exploit check information to collect highly sensitive data and establish new businesses or lines of credit. By generating counterfeit checks using outdated account data, they further increase the risk of financial harm and identity theft.
Businesses that rely heavily on checks are particularly vulnerable as they often lack access to fraud-fighting technologies like AP automation. As a result, these organizations struggle to keep pace with the fraudsters’ methodologies and face significant harm from check fraud.
Engaging in fraudulent activities can damage the reputation of organizations of any size. Even without malicious intent, inefficient payment processes can cause delays and errors that frustrate suppliers. Inconsistencies in payment terms or delayed payments strain relationships and erode trust.
To discuss your cross-border needs please contact Danielle Orcutt, National Account Manager, Corpay (Fleetcor NYSE FLT) +1-929-504-8791 danielle.orcutt@corpay.com https://payments.corpay.com/cross-border
Who we are
About Corpay
Global businesses trust Corpay Cross-Border to power their international payments, execute plans to manage their currency risk and support their growth around the world. We aim to deliver unmatched service and expertise with respect to moving money globally. Utilizing our proprietary payment automation technology and currency risk mitigation solutions, we take pride in connecting companies large and small with the global financial markets and businesses all over the world. You can feel confident working with Corpay, as we are backed by our parent company, FLEETCOR Technologies, Inc. (NYSE:FLT) a leading global business payments company based in Atlanta, Georgia, USA. FLEETCOR is a Fortune 1000 firm, an S&P 500 member and has USD $2.8B in annual revenue with a market capitalization of USD $18.2B (as of December 31, 2021).
To learn more contact Danielle Orcutt, National Account Manager, Corpay 929-504-8791 danielle.orcutt@corpay.com https://payments.corpay.com/cross-border
