By Loretta Carlson, Senior Vice President and Treasury Management Officer, EntreBank
Here’s the uncomfortable truth about fraud: it’s not a matter if your business gets hit. It’s a matter of when.
That’s not a scare tactic. It’s what EntreBank tells business owners every day, because the numbers back it up. The Financial Crimes Enforcement Network’s own filing data shows why.
Suspicious activity reports tied to check fraud at banks and credit unions jumped from roughly 250,000 in 2021 to over 500,000 in 2022, and they’ve stayed there. Banks filed more than 528,000 check-fraud-related reports in 2023, 521,000 in 2024, and still nearly 476,000 in 2025. Check fraud isn’t a passing trend. It’s the new normal.
October is Cybersecurity Awareness Month, and the American Bankers Association just relaunched its #PracticeSafeChecks campaign on October 1, which makes this a good time to look at how to prevent check fraud and the other scams most likely to hit your account.
Many business owners don’t set up protection until it’s too late and unfortunately, in some cases they end up taking a loss. Here are five ways to get ahead of it instead:
1. Set up Check Positive Pay before you need it
Check Positive Pay is a service that compares every check against the list your business has already approved and flags anything that doesn’t match before it clears.
How does Check Positive Pay work?
- Your business uploads its check issue file that includes payee, amount, issue date, and check number for every check you write.
- As checks are presented for payment, the payee, date issued, amount, and check number are matched to the information provided in the issue file.
- A mismatch of information or a check that isn’t listed becomes an exception that is sent to your business to review and make decisions before the bank cutoff time.
Check fraud, especially check washing, is one of the most common types of fraud small businesses see today. Someone steals a check out of the mail, removes the original ink, and rewrites the payee and the amount. Others copy a real check to create a counterfeit. Either way, it’s working off a real account number and a real signature, which is what makes it convincing when the check hits the bank. Check Positive Pay is a powerful tool to help prevent check fraud.
2. Add ACH Filter to catch fraudulent electronic debits
Checks aren’t the only risk. ACH fraud works through electronic debits instead of paper, and ACH Filter guards against it the same way Positive Pay guards checks. Businesses build a list of companies authorized to debit their account, anything outside that list becomes an exception for review before it clears.
Used together, Check Positive Pay and ACH Filter cover two of the most common ways money leaves a business account without permission.
3. Put dual control, multifactor authentication (MFA) and out-of-band authentication to work
Dual control means that one person creates a payment request while a second person reviews and approves the payment before it gets sent.
Multifactor authentication (MFA) is a layered defense security process that requires users to provide two or more distinct forms of verification before gaining access to an account, application, or network.
Out-of-band authentication means calling a vendor (or anyone requesting changes to payments) at a known phone number to confirm a payment request instead of using a phone number provided in an email signature.
Using these controls helps empower small businesses and their teams to combat fraud.
4. Train your team to pause on business email compromise
Business email compromise (BEC) is one of the top fraud threats small businesses face, and it usually starts with an email claiming payment information changed. The fix isn’t complicated: use out of band authentication to verify before you send any payment tied to a changed instruction.
If it doesn’t seem right, pause. Slow down, contact a human, confirm it’s legitimate. That one habit is the single biggest thing standing between a normal invoice and a potential six-figure loss.
For the full breakdown on spotting and stopping BEC, see our February post on business email compromise.
5. Build a relationship with a bank that sets you up for success
A lot of banks offer fraud tools. Fewer make sure you use them, and fewer still treat a small business account like it matters. At EntreBank, that shows up in daily practice.
When you open a business account at EntreBank we put the fraud prevention tools in your hands along with educating you and your team on how to use them effectively. And if you find yourself with questions or concerns, call your banker; we are sure to answer.
That attention is also why EntreBank clients know their banker by name instead of a call center queue. For a business owner comparing banks, that’s the real difference: a bigger bank might not even flag fraud protection services for a smaller account. At EntreBank, you’re a priority from the first conversation.
Don’t wait, start now
Fraud happens every day, empower your business with fraud protection services.
The question isn’t if you will be affected by fraud, it’s when…Be ready when it happens.
Set it up now
If your business isn’t using any of the fraud protection services discussed yet, talk to your EntreBanker. It’s a short conversation, and a lot shorter than the one you’d have after a loss.
As a banking partner deeply invested in providing education and resources to keep businesses informed, our EntreBankers will be proactively reaching out to clients.
Preventing Fraud: Frequently Asked Questions
What’s Check Positive Pay?
Check Positive Pay is a service that compares every check against the issue list a business has shared, flagging anything that doesn’t match before it clears. The business sends its bank an issue file (payee, amount, date, check number), and anything that doesn’t match becomes an exception for the business to review.
What is an ACH Filter?
ACH Filter guards a business account against fraudulent electronic debits the same way Check Positive Pay guards against bad checks. The business builds a list of companies authorized to debit the account. Anything outside that list becomes an exception that the business reviews before the transaction clears.
What is a Business Email Compromise?
Business Email Compromise (BEC) is an email-based scam where a fraudster poses as a vendor, vendor contact, or executive and asks a business to send a payment or change payment instructions. It’s one of the top fraud threats small businesses face. The fix is simple: verify any changes to payment instructions verbally before sending money, every time.
What is Out-of-Band Authentication?
Out-of-band authentication means confirming a payment request through a separate, known channel instead of trusting whatever contact info showed up in the request itself. In practice, that means calling a vendor at a phone number already on file, not one included in the email correspondence.
What is Dual Control?
Dual control means a person creates a payment record, and a second person reviews and approves a payment before it goes out, rather than one person having the ability to send money alone. It’s one of the simplest ways to stop fraud before it happens.
What are the most common check fraud tactics?
The most common check fraud tactics aren’t new. Check washing is one to know. A fraudster steals a check out of the mail, removes the original ink, and rewrites the payee and the amount. Counterfeiting is another: copying a real check to create a fake one. Both work because they’re built on a real account number and a real signature, which is what makes them convincing when the check hits the bank.
Why are small businesses targets for fraud?
Small businesses are often targets of fraud because fraudsters assume they aren’t sophisticated enough to use fraud protection services or have security procedures in place. Fraud protection services and other fraud protection tools are simple to implement and use when you have a great bank partner.
Why should a business choose EntreBank?
When you choose EntreBank, you get a banker who cares about you and your success. EntreBankers take time to understand your business activity and recommend services and processes that help you grow while protecting you. That personal attention goes beyond simply offering fraud prevention tools. It’s about taking proactive steps to help clients and their businesses.
Help us spread the word by sharing this with the business owners in your network.
Related reading: Avoiding Identity Theft, Business Email Compromise, 2026 Nacha Rule Change, Scams on the Rise, Your Money is Safe with EntreBank
References
American Bankers Association. (2026, October 1). #PracticeSafeChecks campaign. https://www.practicesafechecks.com
Financial Crimes Enforcement Network. (2023, February 27). FinCEN alert on nationwide surge in mail theft-related check fraud [FIN-2023-Alert002]. U.S. Department of the Treasury.
Financial Crimes Enforcement Network. (n.d.). SAR Stats: Suspicious activity by industry and activity type, 2020–2026. U.S. Department of the Treasury. https://www.fincen.gov/reports/sar-stats