Fraud Prevention

 

Fraud Prevention Solutions

 

Positive Pay 

First Nations Bank's Positive Pay helps identify counterfeit checks to safeguard your company against check fraud.

Positive Pay matches posted check information with check issue items like serial number and amount and creates exceptions if discrepancies are found. Positive Pay does not verify funds availability (i.e. account balances) when processing checks.

Reverse Positive Pay

Reverse Positive Pay helps to prevent check fraud by allowing company users to examine every check and make decisions to pay or return them.

Companies can have Positive Pay and Reverse Positive Pay services entitled but an account can only be entitled to one of the services.

 

Payee Positive Pay

Payee Positive Pay helps to prevent check fraud by comparing the payee names in a company user's check issue file against those stored by the financial organization. When the payees do not match perfectly an exception is created.

Exceptions generated from the payee comparison always appear with a Payee Mismatch exception
reason.

Payee Positive Pay is available to companies that also use Positive Pay.

Fraud Prevention Resources

Develop strong internal safeguards and controls

  • Monitor accounts daily through online banking to detect suspicious activity and report any fraudulent or unauthorized transactions to Customer Service at 1-773-594-5900, Monday - Friday 9:00am - 5:00pm CST.
  • Reconcile bank statements immediately
  • Keep check stock protected
  • Separate check writing and reconcilement functions to ensure separation of duties
  • If checks are utilized for payroll, consider a separate account for payroll.  These types of checks are the highest risk for fraud. 
  • Conduct periodic unannounced audits to account for all check stock and electronic payment systems
  • Educate employees on best practices
  • Maintain a strong HR Policy against personal use on business IT systems, especially personal email and interactive social media sites
  • Complete background checks on all staff with access to company accounts and financials
  • Consider Cyber Insurance and Social Engineering Riders for your company's business insurance
  • Perform quarterly audits to ensure all employees are following the company's policies and procedures

Utilize System Controls

  • Use check stock with fraud prevention security features such as VOID, watermark, tamper-resistant check stock, etc.
  • Enroll in check and ACH positive pay
  • Utilize DirectLink Merchant services
  • Utilize dual control
  • Operate a stand-alone PC for banking activity and payment origination
  • Use comprehensive IT security systems, including firewalls, anti-virus, and anti-malware software and keep all IT systems up to date
  • Enroll in and monitor email/text alerts and confirmations

 

Questions?

Contact Customer Service at

1-773-594-5900