FRAUD PREVENTION
Fraud scheme: Check fraud Many individuals and businesses leverage checks as a form of payment. However, traditional paper checks present fraud risks that can lead to exposure of personal and account information, or a financial loss. Checks contain sensitive and personal information such as your name, address, account number, routing number and signature, which fraudsters can use to gain unauthorized access to your accounts.
Common types of check fraud include: • Theft and forgery: Stealing physical checks and fraudulently endorsing them to gain access to funds in the associated account — The information on the check can also be used to set up unauthorized Automated Clearing House (ACH) payments • Counterfeiting: Making withdrawals or payments with fake checks that contain genuine routing and account details • Check washing: Chemically removing and replacing the information on the check, such as payee or amount • Fake check scams: Fraudsters may trick you into depositing a fraudulent check. Often, they request a reimbursement or return of overpayment through a different method, including wires, ACHs or person-to-person payments. Before returning funds, verify the legitimacy of the check by ensuring the check has cleared the maker’s account Note: Prior to depositing checks into your account, validate their legitimacy. Examine the security features on the back to ensure everything is present. Also, while funds from a check may appear available, do not use those funds until you have ensured they have completed the clearing process. Funds from a deposited or cashed fraudulent check must be returned.
How to help protect against check fraud 1. Use online bill payment systems, and sign up for paperless statements. • Routing and account numbers printed on checks can sometimes be used to commit ACH fraud. When you use online bill payments systems, J.P. Morgan sends a check on your behalf without disclosing your personal checking account number 2. Add advanced check fraud prevention services, such as Positive Pay, Reverse Positive Pay and ACH Debit Block on your business or commercial checking accounts. 3. Check your accounts regularly for unauthorized activity, and enable online alerts such as Positive Pay, Reverse Positive Pay and ACH Debit Block on your business or commercial checking accounts.