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+++++++++++++++ + + +++++++++++++++ BANKING +++ +++ Is Your Medical Practice Protected from Payments Fraud? By Howard Lutz P AYMENTS FRAUD PROTECTION has never been more impor- tant. Economic uncertainty combined with new payment types and technologies has created fertile ground for first-time fraudsters, as well as seasoned criminals searching for new ways to gain access to your medical business' money. Many people are under the impres- sion that fraud attempts only happen to large, well-established businesses. Unfortunately, that isn't the case. Payments fraud can happen to busi- nesses of any size and can often have a more severe or even detrimental impact on small businesses such as medical practices. Unfortunately, payments fraud attempts can result in financial loss, cost businesses valuable time and effort, and potentially damage the reputation of a business. Most Common Fraud Attempts + Check fraud — Of those who reported experiencing fraud in the Association for Financial Professionals Payments Fraud and Control Survey, nearly 90% were victims of check fraud. Types of check fraud frequently reported include altered payee names on issued checks, counterfeit checks using one business' legitimate magnetic ink character recognition line but another organization's name, and fraudulent checks declined by Positive Pay and then presented as Automated Clearing House (ACH) debits. + ACH transactions — Fraudsters also heavily target ACH transactions in the form of unauthorized transactions. According to the Payments Fraud 6 | San Antonio MD NEWS ■ MDNEWS.COM and Control Survey, financial losses from ACH fraud were most frequently caused by not reconciling accounts, not using blocks or filters for ACH, lack of using fraud-prevention products, and internal fraud. Tips for Protecting Your Practice from Fraud Keeping banking and account infor- mation secure is a top priority for banks. However, responsibility also rests with each business to ensure pro- cedures are in place to both prevent and detect fraud. While fraud is becoming more prevalent, there are a number of steps businesses can take to safeguard their information. + Reconcile all bank transactions (including checking online for elec- tronic transfers) daily. + Use your bank as a resource — banks have in place payment strategies, systems and software designed to protect customers from fraud. + Never access bank, brokerage or other financial-services information from Internet cafés, public libraries, etc. + Never open file attachments or click on Web links if you are unsure of the source. + Install a dedicated, actively managed firewall and commercial antivirus software, and consider installing spy- ware-detection programs. + Exercise extreme caution when con- fronted with any request to divulge account information or banking- access credentials. + Implement separation of duties and dual approval on all money- movement transactions. + Receive electronic bank statements. + Use high-quality check stock with built-in security features, and make sure your check stock is secure. + Shred your no-longer-needed docu- ments and cards; don't throw them away for someone to find. + Immediately report any transactions in your accounts that look suspicious. + Create strong passwords (at least 10 characters in length), and update them several times per year. Taking steps to protect your business now can help insulate you from future fraud attacks, saving you money, time and resources. Howard Lutz is Senior Vice President and Private Banking Manager for Amegy Bank San Antonio. He leads a team of professionals who work extensively with physicians and hand in hand with bank- ers from all lines of business, enabling clients to receive one-on-one, personalized solutions and comprehensive service at any time. The Private Banking team specializes in meeting and anticipat- ing the needs of doctors, corporate executives, professionals, entrepreneurs, business owners, wealthy individuals and families who expect and deserve excel- lence and seek personalized relationship banking. For more information, Lutz can be reached at (210) 343-4555 or howard.lutz@amegybank.com. ■