Premier Flooring Retailer Premier Flooring Retailer Magazine - Covid-19 Busi | Page 15

There are many types of fraud that affect businesses.
One of the biggest concerns is Automated Clearing House
(“ACH”) fraud.
Steps to Safeguard Your Business Bank Accounts.
Fortunately, there are precautions that a flooring retailer or contractor can take to guard against
ACH fraud.
■ Y
 ou need to be aware of unauthorized transactions in banking accounts. Given that your business
has only one day to report possible ACH fraudulent activity, you should consider using online
banking, and check your bank statements every day.
■ I  t is not uncommon for the fraud to be committed by an employee who has access or authority
over the business’s bank accounts. You do not want to be a victim of internal fraud by allow-
ing the individual who is checking the accounts to also be able to hide their own fraud. Accord-
ingly, it is recommended that the person reviewing the bank statements does not have authority
to sign checks or transfer money
■ I  f you find any improper or suspicious activity, immediately report it to your bank.
■ Y
 ou also need to know your bank’s policy for reporting fraud. The bank may require a written
notice with specific information. Also check the actual amount of time you have to report sus-
picious activity on your accounts. Set up the reporting system ahead of time to avoid any delay
in reporting the suspicious activity, and thereby miss the reporting deadline.
Premier Flooring Retailer | Q1 2020
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