Check Security Online Special
Finally, Abagnale is a huge proponent of “Positive Pay.” This system coordinates each check with the the bank and prevents payments of any un-matching claims. A list of all payments is sent to the subscribing business every day so that accounting may be verified. Abagnale recommended companies of any size to be on Positive Pay at their bank. Using Positive Pay the lost check can be removed from the issue file. If someone attempts to cash the lost check there is no match. The bank will mark this as a suspicious item and call the account holder.
Liability and Prosecution
It is difficult to prosecute most of these problems, especially if the forger has used a false ID and/or left the area. Abagnale said many of those who are caught are eventually released because they do not pose a large threat to society (i.e., they are not violent). “[Banks] know they can’t prosecute any of these checks, but the problem is, if you’re not doing anything about crime, you’re encouraging crime,” he said.
Small companies especially need to protect themselves from these kinds of fraud because a single check fraud instance that courts claim must be paid could lead to bankruptcy. For this reason, Abagnale reiterated, “You have to use a little common sense and protect youself.”