CrossCheck Blog

Have you ever been frustrated to get a red-alert email or call from your bank warning you of credit card fraud? I have, and while I am grateful for the precautionary steps the bank took in order to protect my account, it’s frustrating at the same time. First, because I was the victim of fraud. And second, because when they issue me a replacement card I have to re-save the new card information with all the online merchants I do business with.

The lights go down and the crowd goes wild. Striding up to the mic, dangling in the spotlight hitting the center of the ring, the MC looks around intently until the crowd quiets just a little, giving him his cue: "In the blue corner," he begins, "hailing from parts unknown are YOU! Savvy, book smart and streetwise, entrepreneurial, and a bare-knuckle business manager or owner, this is a fighter who doesn't take lightly being slipped bogus paper. With his training at its peak, and looking like he'll retain his title tonight, here's the... Fake Check Slugger!"

Ask any business owner why she accepts checks and she’ll probably point out a few critical facts: Baby Boomers, who make up 44% of the population, hold 70% of disposable income and buy 49% of consumer goods. They also write checks more often than any other demographic, which helps explain why checks account for 33% of the value of all transactions in the United States – even in an era of proliferating digital payment innovations.

According to Fraud.org, checks were targeted as the most prevalent vehicle in 2013, accounting for 23% of all gamuts. They can happen in your store or online and can burn your profits, give you headaches, and cause you to waste time recovering what is rightfully yours – payment for goods and services. They’re not all as obvious as the notorious Nigerian check, and some are downright clever.

Collecting payment for your goods and services may often feel like you’re in the midst of a constant battle. You’ve got to swipe high-value paper cash with security markers, and you eyeball credit card machines for “Declined” messages, but what are you doing to combat counterfeit checks? In many cases, the most merchants do is write down a driver’s license number, but once your goods are gone and that check bounces, you’re out the money. The bad news is, counterfeit and bad checks aren’t going away anytime soon. The good news? Read on...

Cat got your tongue? It may feel a whole lot worse than cat scratch fever when your bank starts levying bad check deposit fees against you, or worse, you’re out both the money for your furnishings as well as the furnishings themselves. Beware this morality story unless you and your home goods store have nine lives to spare.

The sign is up, the inventory is in, your staff is trained. You’ve done it - you’ve opened the doors to your new retail store and are ready to welcome customers. As a new business, in addition to forecasting sales and stocking shelves, you’re probably thinking about what payments to accept. For some business owners, it may seem that the best way to avoid the risk of a bad check is to not accept checks at all. But to do so means fewer sales and fewer customers, not exactly the best way to start off a new business. Maybe you’re considering a verification or guarantee service but aren’t quite ready to make a decision. Even without a check service in place, there are basic steps a store can take to reduce the risk of accepting a potentially bad check.

Two kinds of check fraud are on the rise – but you’d never know it from their fun, outdoorsy, active-sounding names. Check kiting and paper hanging are far from their enjoying nature and decorating-the-home monikers. They’re damaging enough to take down your company, and even the most vigilant and educated of business owners stand to lose millions to these scams.

Check fraud and forged checks mean losses for several parties: the business receiving the check, the person, or business, whose account was compromised and the financial institutions sorting it all out. Recently, several arrests for check fraud have made the news. One arrest involved a woman in California who created checks using blank stock in her home and then purchased gift cards with them.