Business Check Fraud Increasing in Our Area

We have seen a significant increase in check fraud targeting local businesses in our area recently. Please use extreme caution if you must write checks. Duplicate checks are being produced and negotiated at banks across the country. We are experiencing this right here in Vermont.

The fraudsters are often only changing the payee’s name. The rest of the check information, including the amount and check number, are staying the same. This makes it look at quick glance that the check cleared the business account without issue. It is only when you view an image of the check that you notice the payee has been changed.

We encourage customers to reduce the number of checks being written and use alternative payment methods such as business debit cards or ACH. Business customers can also use Positive Pay to help prevent check fraud. Positive Pay verifies the checks you write against the checks presented to your account to ensure they are legitimate. However, some fraudulent checks can be missed, so Positive Pay users are still recommended to verify check images to confirm they are legitimate.

For all checks written, please review checks that clear your account daily and contact us immediately if a check is fraudulent. Businesses only have 24 hours from the time the check clears to notify the Bank to ensure the Bank can obtain your funds back.

Please stay vigilant, and thank you for helping prevent check fraud.