Fake check scams can happen to any business. And they come in many shapes and sizes, aiming to exploit everyday business transactions. Understanding the tactics employed by scammers and implementing preventive measures is crucial for businesses to protect themselves.
Let’s take a look at common fake check scams and strategies to guard against them:
- Vendor Overpayment Scams. A fraudster poses as a vendor or supplier, sending a check that exceeds the agreed-upon amount. The scam happens when the fraudster asks you to refund the overpayment. Unfortunately, the check didn’t clear your account, and now you’ve lost that money and the refund amount.
Preventive Measures: Establish clear payment terms with vendors and verify any unexpected overpayments before processing. Train employees to recognize unusual payment patterns and conduct due diligence on new vendors.
- Fake Invoice Payment Scams. Scammers send fake invoices along with checks for payment, tricking businesses into depositing the checks and sending back the excess amount.
Preventive Measures: Implement a thorough invoice verification process, including cross-referencing invoices with purchase orders. Train your employees to scrutinize payment requests for legitimacy and report any suspicious transactions.
- Online Purchase Scams. Fraudulent buyers send fake checks, overpay for goods or services, and request a refund for the excess amount.
Preventive Measures: Verify the identity of buyers and conduct due diligence on new customers. Be cautious of overpayments, especially with online transactions, and ensure that refunds are processed only after confirming the authenticity of the initial payment.
- Tenant/Property Scams. Scammers pose as corporate tenants and pay with fake checks for office space or equipment rental.
Preventive Measures: Verify the legitimacy of potential tenants, especially for high-value leases. Confirm payment details and be cautious of urgent requests for refunds or changes in payment instructions.
- Consulting or Service Scams. Scammers hire your business for consulting services, sending an inflated check and requesting a refund for the overpaid amount.
Preventive Measures: Validate the legitimacy of consulting requests and thoroughly vet new clients. Verify payment details and be wary of sudden changes in transaction amounts.
By fostering a culture of awareness and implementing robust procedures, you can significantly reduce the risk of falling victim to these deceptive schemes, safeguarding your business’s financial stability and reputation.
If you see any discrepancies in a Quail Creek Bank account, please call us immediately at 405-755-1000.
