Check fraud schemes are becoming increasingly sophisticated by the day.

Here at Wolf River Community Bank, we recently identified two new and troubling sources of check fraud that are impacting financial institutions. As these threats continue to evolve, it is more crucial than ever that both banks and their customers stay informed and proactive to protect themselves and their assets.

Read on to discover what you need to know in order to protect your assets, as well as maintain personal and financial security.

TWO EMERGING CHECK THREATS

1. Fraudulently Created Insurance Checks

We were recently alerted to a form of check fraud that involved fraudulently created Liberty Mutual Insurance checks. Below is a sample check that attempted to make its rounds through Wisconsin.

This case highlights the need to exercise caution with all insurance-related checks. If you encounter a check from any insurance company, especially one you were not expecting to receive or one with a higher amount than you expected, you need to make sure to verify its authenticity thoroughly to protect yourself from potential fraud.

2. Fraudulently Created Home Equity Line of Credit (HELOC) Checks

Fraudsters have also begun leveraging public records to create fake HELOC checks. HELOC documents frequently include all the details that a fraudster would need to create a fraudulent check, such as the customer’s name, address, lender, signature, and account number. Although we are still learning all of the specific details about these fraudulent HELOC checks, this upward trend in fraudulently created checks underscores the importance of staying vigilant at all times.

HOW TO STAY VIGILANT

Wolf River Community Bank wants to remind you to stay vigilant by reviewing all checks carefully.

To help you do so, we have provided three helpful verification tips below, which you can use to help determine the authenticity of a check.

Remember these tips are not guarantees of authenticity, but rather tools to assist you in making an informed decision.

1. Look for basic errors

When you look at the check, start by scrutinizing the text. Check for spelling errors, inconsistencies in font types, and irregular signatures.

Take a look at that Liberty Mutual Insurance check again.

We pointed out the discrepancies in the font used for the date, the written amount, and the payment amount.

This font discrepancy is a red flag, and it can be a big indicator of a fraudulent check.

2. Assess the quality of the check

Remember that authentic checks have distinct textures, watermarks, and other security features that are designed to prevent fraud and counterfeiting.

Be alert to these features and compare them against known security standards to help determine the authenticity of your check.

3. Talk to your banker

Your banker is trained to listen to your story and investigate any inconsistencies or red flags they may notice. Are checks being deposited on behalf of someone else? Does the check amount seem unusually high?

If you receive a check in the mail that you were not expecting, it is also important for you to pay attention to the narrative behind the check. You should try to verify the legitimacy of the sender and the amount of the transaction.

Play detective!

STAYING AHEAD OF FRAUD

By following these verification steps and staying alert to emerging fraud patterns, banks and their customers can better protect their assets and maintain security. However, please remember that these verification steps are not guarantees of authenticity, but rather tools that can assist you in making an informed decision.

If you have any questions or concerns about the legitimacy of a check, please feel free to bring it to one of our branches. Our team will be happy to assist you with a thorough review!

FOR BUSINESSES: POSITIVE PAY

Wolf River Community Bank can help you protect your business before it is too late.

For ACH transactions, fraudsters only need your routing and account numbers to commit fraud. By the time you detect the issue, it is often too late, and your money is already gone.

Positive Pay, a powerful tool offered here at Wolf River Community Bank, can help you mitigate your business’ fraud risk. It is an automated fraud detection tool that matches the check and ACH transactions your business issues with those presented for payment. If any discrepancies are found, the check is flagged for your review, ensuring only authorized transactions are processed.

Are you ready to take the first step in protecting your business from potential check fraud? Call us today to schedule an account review to help you get started with Positive Pay.