Small Business Fraud Alert*
Top 10 Tips To Protect Against Check Fraud
Tip 1
Have good office business practices, like separation of accounting duties and have your bank statement sent to your house (not office).
Tip 2
Examine new checks and keep check boxes sealed until needed.
Tip 3
Destroy unused checks from closed accounts immediately.
Tip 4
Avoid multiple colors and sizes of checks for the same account.
Tip 5
When typing checks, use a type font of 12 points or larger to reduce the likelihood of forgery.
For more information on check fraud, call 800-548-0289 and ask to speak to one of our CheckLockTM Fraud Resolution Experts.
1 Small Business Fraud Custom Study among Small Business Owners Conducted for SunTrust Banks/National
Small Business Association/Edelman, October 17, 2007.
1 out of 4 businesses have experienced fraud and
the average loss is $50,000– 45% of these cases are check fraud1 -
could your business survive that loss? In fact 30% of fraud cases
committed in the workplace occurred in businesses with less than
100 employees with a median loss of $150,000– one of the most
common cases being check fraud2. And, if you’re hit with fraud, in
most cases, your bank and the government will not help you resolve your case quickly.
Don’t become a victim of check fraud! It’s up to you
to educate yourself on how to protect your business and take the
necessary precautions. At Intuit, our mission is to help you do that by offering:
- Checks designed with advanced security features to deter fraud.
- Safeguards from order through delivery.
- CheckLockTM Fraud Protection if you suspect or experience fraud.3
- Expertise to teach you how to protect your business.
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1 Small Business Fraud Custom Study among Small Business Owners Conducted for SunTrust Banks/National Small Business Association/Edelman, October 17, 2007, pg. 11
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2 Association of Certified Fraud Examiners, 2010 Report to the Nations on Occupation l Fraud and Abuse, pg. 18, 34
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3 For details on CheckLockTM Fraud Protection terms and conditions go to: www.intuitmarket.com.
CheckLockTM Fraud Protection applies to pre-printed checks and is not offered, applicable or available to residents of the states of New York and Massachusetts.
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Protect Your Computer
By using safety measures and good practices to protect your home computer, you can protect your privacy and data. The following tips will help you lower your risk while you're online.
Install a firewall
A firewall is a software program or piece of hardware that blocks hackers from entering and using your computer. Hackers search the Internet in much the same way that some telemarketers automatically dial random phone numbers. Hackers send electronic probes, or pings, to thousands of computers and wait for responses. Firewalls prevent your computer from responding to these random pings. A firewall blocks communications to and from sources you don't permit. This is especially important if you have a high-speed Internet connection, such as DSL or cable.
Some operating systems have built-in firewalls that may be shipped in the "off" mode. Therefore:
- Be sure to turn your firewall on.
- Ensure your firewall is set up properly and updated regularly.
- Check your online "Help" feature for specific instructions.
Use anti-virus software
Anti-virus software protects your computer from viruses that can destroy your data, slow down or crash your computer, or allow spammers to send e-mail through your account. Anti-virus protection scans your computer and your incoming e-mail for viruses, and deletes them.
- Keep your anti-virus software updated to cope with the latest bugs circulating the Internet. Most anti-virus software includes a feature to download updates automatically when you are online.
- Make sure your anti-virus software is continually running and checking your system for viruses, especially if you are downloading files from the Web or checking your e-mail.
- Set your anti-virus software to check for viruses when you first turn on your computer.
- Give your system a thorough scan at least twice a month.
Use anti-spyware software
Spyware is software installed without your knowledge or consent. It can monitor your online activities and collect personal information while you surf the Web. Some kinds of spyware, called keyloggers, record everything you type in – including your passwords and financial information. Your computer may be infected with spyware if you receive a sudden flurry of pop-up ads, are taken to Web sites you don't want to go to, or if your computer begins to run slowly.
Spyware protection is included in some anti-virus software programs.
- Check your anti-virus software documentation for instructions on how to activate the spyware protection features. You can also buy separate anti-spyware software programs.
- Keep your anti-spyware software updated and run it regularly.
- Download software only from sites you know and trust. Piggybacking spyware can be an unseen cost of many "free" programs.
- Don't click on links in pop-up windows or in spam e-mail.
Manage your system and browser to protect your privacy
Hackers are constantly trying to find flaws or holes in operating systems and browsers.
- To protect your computer and the information on it, ensure your security settings in your system and browser are set at medium or higher. Check the Tools or Options menus for how to do this.
- Update your system and browser regularly, taking advantage of automatic updating when it's available. Windows Update is a service offered by Microsoft. It will download and install software updates to the Microsoft Windows operating system, Internet Explorer, and Outlook Express. It will also deliver security updates to you. Patching can also be run automatically for other systems, such as the Macintosh operating system.
Secure your wireless network
If you use a wireless network in your home, take precautions to secure it against hackers. Encrypting wireless communications is the first step.
- Choose a wireless router with an encryption feature and turn it on. WPA encryption is considered stronger than WEP. Your computer, router, and other equipment must use the same encryption.
- Consider disabling identifier broadcasting if your router enables it.
- Note the name assigned to your Wi-Fi network. This name – called an SSID, or Service Set IDentifier – lets you connect your computers to the network manually. The SSID is often the equipment maker's name.
- Change the SSID on your router and the pre-set administrative password. Hackers know the pre-set passwords on many wireless routers.
- Consider turning off your wireless network when you're not using it.
Remember that public hot spots may not be secure.
- Avoid accessing or sending sensitive personal information over a public wireless network.
Create a Strong Password
Weak passwords – those that aren't hard to guess – make it easy for casual acquaintances or attackers to access your online accounts. Here are some tips for creating or changing your password:
- Use a different password for every site.
- Do not use people's names and special dates as passwords. Avoid any combination of characters that friends or acquaintances can easily guess. For example, a password such as "April15" for a TurboTax Online account is not a strong password.
- Use syllables or acronyms. Avoid using complete words that appear in any dictionary regardless of the language. One option is to start with the first letters of a familiar phrase. For example, "Mary had a little lamb" becomes Mhall, which could be part of a secure password.
- Mix it up! Use a combination of upper and lower case letters, numbers, and punctuation/special characters, such as &^$#.
- Keep it to yourself. Do not share your personal password with others. You never know what the future will bring in relationships or coworkers, so do not give your password out – to anyone.
Protect Your Business, Employees and Customers

Do’s and don’ts of information management
Awareness
Do
- Create and follow a security policy.
- When in doubt, check it out! Check the leading anti-virus Web sites for security alerts and as a general reference source.
Don’t
- Assume security is someone else’s job.
- Think that you know everything there is to know about security. Technology changes quickly and new threats surface almost every day.
Telephone
Do
- Make sure that you know who you are speaking with and suggest legitimate ways outside callers can obtain the information they seek.
- Offer to return calls from unknown or suspicious callers after first checking to ensure the caller is legitimate. By offering to return the call, you can buy yourself time to check out the caller’s authenticity.
Don’t
- Give unknown or unauthorized callers any information.
- Be intimidated by a caller who is a “name dropper” or claims to be a VIP.
Printed material
Do
- Pick up printouts and faxes promptly.
- Use a cover page when sending faxes.
- Label confidential information and handle it in a manner appropriate to its sensitivity.
- Lock up confidential information when you leave your work area.
- Dispose of confidential information in secure trash bins or by shredding.
Don’t
- Leave confidential information on the printer or fax machine.
- fax confidential information without speaking with the intended recipient first.
- Disclose secret or sensitive Information to anyone not authorized to see it.
- Leave confidential information out on your desk when you’re gone, or in public areas at any time.
- Throw confidential information into open trash bins, at work or at home.
Computer use
Do
- Be aware of your surroundings and take precautions to protect confidential information.
- Use secure e-mail for confidential information.
- Ensure that all computers you use to access the Internet or your company’s network have anti-virus software running.
- Install security-related software patches as soon as they are available.
- Whenever possible, encrypt sensitive or secret information that is stored on your hard drive.
- Use cable locks to secure portable devices.
- Keep your portable computer and PDA with you at all times.
- Use a password-protected screen saver and logout of your company’s network at the end of the day.
Don’t
- Display confidential information on your computer screen in public areas.
- Send confidential information in ordinary e-mail.
- Open e-mail attachments you weren’t expecting, even if they’re from someone you know.
- Set up your own wireless LAN or have a modem that can accept an incoming call while your computer is connected to the Internet or your company’s network.
- Put sensitive or secret information on a portable computer or PDA in plain text.
- Leave portable devices unsecured when you’re not there.
- Leave a computer or PDA unattended in a public place.
- Leave your computer logged into your company’s network and the display on when you’re gone.
Passwords
Do
- Use strong passwords on your computer accounts. Check the password guidelines.
- Change your password regularly.
- Memorize your password.
- Keep your password secret.
Don’t
- Use your name, your family’s names, your pet’s name, or a word in a dictionary as your password.
- Change your password in predictable ways.
- Write it down.
- Tell anyone your password, for any reason.
Top 10 Tips to Protect Against Check Fraud
Tip 1
Have good office business practices, like separation of accounting duties and have your bank statement sent to your house (not office).
- Separate accounting duties, know the division of labor, and have good oversight.
- Have your bank statement sent to your house (not your office) so you control reconciliation – report losses or suspicious checks to your bank quickly to ensure a response.
- Store checks, check reorder forms, cancelled checks and signature stamps in secure, locked location.
- Issue multiple passwords to those responsible for check printing.
Tip 2
Examine new checks and keep check boxes sealed until needed.
Tip 3
Destroy unused checks from closed accounts immediately.
Tip 4
Avoid multiple colors and sizes of checks for the same account.
- Multiple colors and sizes of checks in the same account make spotting counterfeit checks difficult.
Tip 5
When typing checks, use a type font of 12 points or larger to reduce the likelihood of forgery.
Tip 6
Get checks with built in "overt" and "covert" security technology.
- Get checks with built in "overt" and "covert" security technology that
quickly expose fraud, like warning bands, microprinting, chemically reactive
paper and toner adhesion – don’t assume all checks are the same!
Tip 7
Ensure protective measures in ordering like "signature required" delivery.
Tip 8
Read your bank contracts to understand your liability for check fraud losses.
- Banks typically require certain business practices be met to support a claim.
Tip 9
Use Positive Pay or Reverse Positive Pay to verify checks and make pay/no pay decisions.
- Positive Pay is an automated check matching service that compares checks issued with checks presented for payment.
- Reverse Positive Pay provides your company with a daily checks paid report that can be matched against your internal issue file.
Tip 10
Make certain you have the right experts to provide advice to protect your business from check fraud.
©1999-2010, FRANK W. ABAGNALE, Protection Against Check Fraud
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