Believe it or not, check fraud is rampant and has become a major criminal enterprise in the 21st century. Thieves target mailboxes, using real checks to “wash” and turn them into counterfeit ones that are often good enough to pass at many banks.
We have heard multiple first-hand accounts of this happening to people we know. This might sound concerning, but fear not—there are practical and straightforward ways to limit your risk of check fraud. Here are some easy tips to help you safeguard your dental practice and secure your finances.
Use the Post Office When Mailing Checks
Instead of placing checks in your home or business mailbox, take a quick trip to the post office and use the mailbox in the lobby. This small change significantly reduces the risk of your checks being intercepted. Plus, you won’t have to wait in line to do this, making it a convenient and secure option. Remember to track your mileage for taxes!
Pay with a Credit Card Whenever Possible
Major credit card companies offer excellent fraud protection services. In the event of fraudulent charges, credit card companies typically restore funds more quickly than banks. By using credit cards for payments whenever possible, you can leverage these protections and reduce your reliance on checks, giving you extra peace of mind.
Enroll in Paperless Banking
Paper statements often contain images of your checks, which fraudsters can use to create counterfeit versions. Enrolling in paperless banking eliminates this risk and ensures that sensitive information is only accessible through secure online channels. This enhances security, helps reduce clutter, and streamlines your financial management.
Don’t Let Staff Write Checks
Ensure that only you are authorized to write business checks. Limiting check-writing privileges to yourself reduces the chances of mishandling or misusing checks. Keep your checkbook locked up in a secure place to prevent unauthorized access. This simple step can make a big difference in protecting your practice.
Protecting Insurance Reimbursement Checks
Dental practices frequently receive insurance reimbursement checks, which are prime targets for theft due to their high value. Here are some additional tips to protect these checks:
Use a Secure Mailbox
Consider installing a locking mailbox at your practice (and home!) to receive insurance checks securely. Alternatively, arrange for your checks to be sent to a PO Box, which offers a higher level of security than a standard mailbox. It's a simple change that adds a layer of protection.
Immediate Check Processing
Promptly process and deposit insurance reimbursement checks upon receipt. The less time these checks spend sitting around, the lower the risk of being lost or stolen. Quick action keeps your finances safe and sound.
Monitor Insurance Payments
Review your insurance claims and payments regularly to ensure that all expected reimbursements have been received. Promptly follow up on any discrepancies or missing checks to prevent potential fraud. Staying on top of this helps maintain a smooth-running practice.
Additional Tips for Enhanced Security
Beyond the primary steps listed above, consider these additional measures to protect your practice further:
By implementing these simple and practical strategies, you can significantly reduce the risk of check fraud and ensure the financial security of your dental practice. Stay vigilant, adopt secure practices, and focus on providing excellent dental care with the confidence that your finances are well-protected. Not sure where to start? Contact us today!