Office of the Comptroller of the Currency
Check Fraud: A Guide to Avoiding Losses
Preventive Measures – General Internal Controls
Strong organizational controls can reduce the likelihood of check fraud. A sound organizational strategy should require the bank to:
Next: Internal Controls to Prevent Check Fraud by Insiders
- monitor, classify, and analyze losses and potential losses to identify trends.
- report findings from monitoring activities to the audit, risk-management, and security divisions and senior management.
- ensure communication among departments about check fraud concerns.
- assess operating procedures regularly and implement changes.
- target check fraud awareness training to specific check fraud schemes – how they occur, and how to prevent them.
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