Why Outsourcing Check Services Helps Prevent Fraud
No matter the type of business or enterprise you control, ensuring a solid security system for your payment processing methods is essential. With all the moving parts of a corporation, you don’t have time to worry about potential threats to your payments or infrastructure. If your money isn’t secure, then what is?
When companies are processing and writing dozens or hundreds of checks per day, the risk of human error inevitably increases. To avoid potentially disastrous issues, such as check fraud, consider outsourcing check printing and mailing services to experts with years of experience in providing peace of mind to businesses.
That’s where SmartPayables comes in. Whether you need check printing and mailing services, check printing software, direct deposit automation, statement and document printing and mailing, address cleansing, or more, our team of professionals is in your corner. We offer a full range of accounts payable payment solutions for businesses of all shapes and sizes. We can accomplish your financial goals by providing secure, innovative technology through our user-friendly Fintech system. In this blog, we’re going to examine how outsourcing check service can help you boost your payment security and decrease the risk of fraud, which could cripple your business.
When placing important responsibilities, such as check services, in the hands of outsourced companies, trust a firm with years of experience, a proven track record of success, and top-of-the-line customer service. That’s the Smart Payables way.
What Are The Different Types of Check Fraud?
According to the National Check Fraud Center, each year, more than 500 million checks are forged. In one year, losses from these fraudulent checks totaled nearly 10 billion dollars. Forged or counterfeit checks may be the most common and notorious types of check fraud, but there are a few different ways potential thieves might attack your checks.
Below is a breakdown of some of the most common types of check fraud:
1. Check Theft
This one is rather self-explanatory. When a person steals your business or personal checks and attempts to use them for themselves, this is a type of check fraud. This can happen both with physical and digital checks. Outsourcing this practice can largely reduce the risk of thieves getting ahold of your checks.
2. Counterfeit Checks
Creating fake or counterfeit checks and attempting to use them as legitimate payment options is considered check fraud. In fact, this is the most common type of check fraud. Fraudulent checks can be fabricated using printers and copier machines and passed off as legitimate. According to the AARP, every legitimate check contains a number that appears in two places:
- In the upper-right corner
- In the magnetic ink character recognition (MICR) line at the bottom
If the numbers don’t match, the check is a fake. For more ways to spot and stop fraudulent checks, click here.
3. Check Forging
Check forgery indicates that someone else either authorized the check with a false signature or endorsed a check that wasn’t written for them. This can happen easily if your checks aren’t securely stowed away or if you leave sections not filled out.
4. Check Washing
Scammers or thieves can use certain chemicals to remove ink or previous information off of checks, then replace it with fraudulent information, generally used to steal money from a bank account. Dollar amounts or names can be changed to target certain people or money in certain accounts. This method is rather complicated and therefore isn’t as common.
5. Check Kiting
In this form of check fraud, a scammer will write a check from an account with insufficient funds, then hope to withdraw the money before the check clears or bounces. Checks are misused as a form of unauthorized credit in this way.
In trying to avoid all these forms of check fraud, consider outsourcing your check printing and mailing service needs. This will help you digitize your funds (so physical checks can’t be stolen or forged) and ensure experts are monitoring your checks and funds meticulously. Outsourced companies have keen eyes for red flags in checks, such as an attempted washing or forgery.
What Are Outsourced Check Services?
Essentially, outsourcing your check services means you are allocating responsibility to a third-party company to handle all your check writing, printing, and mailing needs. This convenient service allows you to focus on more pressing areas of your business with peace of mind that your financial processes are being handled by experts in the field.
This service can cost you money in the short term, but will ensure you won’t have to worry about potential disaster recovery in the event of fraud or another threat.
Companies that handle outsourced check printing and mailing generally handle the following services for you:
- Same-day printing that is quick and accurate
- Overnight check printing services
- Check writing
- Ensured document integrity
- A slew of check mailing options specific to your business’s schedule and needs
- Insert features (invoices, statements, business or marketing documents)
- Warehouse services
- Real time reporting and status updates
What Are The Benefits of Outsourced Check Services?
Whether you plan to handle your check services in-house or through an outsourced company, it’s important to ensure the security of your company’s funds and financial transactions.
If you have the time to monitor all these factors yourself, as well as run the daily operations of your company, then more power to you. But it might provide relief to know an expert is monitoring your funds 24/7. Outsourcing your check writing, printing, and mailing services comes with a slew of benefits you might not get in-house, including:
- An increased level of security: Allocating check responsibilities to an expert will allow you to focus on other important facets of your business worry-free. Outsourced experts are experienced in locating, solving, and preventing potential check frauds issues that may arise.
- Lower costs: While hiring an outsourced firm will include an upfront cost, it will save your business money in the long run. Outsourced companies have their processes down to a science and can scale solutions to your specific needs. Hiring and training an in-house team to handle these responsibilities is costly and time-consuming.
- A More Streamlined System: Outsourced companies use a meticulous scheduling system that is always up-to-date without interruptions. If there are issues that arise, the firm will handle them for you. They’ll be able to lay out the process for you and stick to it in a timely manner, saving you money and anxiety from trying to handle it all yourself.
- Less Risk for Mistakes: Outsourced companies are pros at handling check printing and mailing services, and know the best way to handle your company’s needs. Instead of trying to figure it all out yourself, allocate that responsibility to experienced experts.
Conclusion – Why Outsourcing Check Services Helps Prevent Fraud
When it comes to check printing and mailing services, businesses can’t afford for mistakes, interruptions, or potentially devastating attacks. Trust professionals in the field to do the heavy lifting for your business, so you can get back to important daily responsibilities in your work.
Whether you need outsourced check mailing and printing services, ACH payments or direct deposit automation, address cleansing, or other essential services, choose the experts at SmartPayables to ease your mind and boost your financial security.
Contact us today at support@SmartPayables.com or call us at (720) 287-0030 to learn more about how we can make check printing and processing safer for you.
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