Seminar educates business leaders about fraud prevention

Shawn Christian admits most people in the Cape Girardeau area may never have to worry about someone on the Federal Bureau of Investigation's 10 most wanted list posing a danger to the community.

But he said an even greater threat is possible for Southeast Missourians: the ordinary resident stealing one's identity.

"People we meet on the street that we don't know their name, who blend in and don't fit the profile of a criminal are the ones we need to be concerned with," said Christian, senior vice president and regional manager of the East Central and Gulf Region of US Bank. "These are the folks you need to worry about."

Sponsored by US Bank, Christian was in Cape Girardeau on Thursday for a two-hour fraud prevention seminar at the Osage Community Centre.

Bob Francis, president of the US Bank branch at 325 N. Kings­highway, said there was only room in the conference room for 40 to 50 participants. He expects the next fraud seminar in six months to a year will allow enough seating for the public to attend.

"We realize how dangerous of a threat fraud can pose to a business," Francis said. "This hopefully informed customers and employees in the community about how they can protect their company's assets and prevent fraud from affecting their businesses."

According to the U.S. Department of Justice, less than 2 percent of fraud perpetrators spend time in jail. Christian said that since restitution is unlikely, the responsibility is on businesses to equip themselves with the necessary tools to prevent fraud.

A common type of fraud is counterfeit checks, which Christian said are relatively easy to create. For about $30, such perpetrators can purchase the software VersaCheck, which allows them to duplicate checks in a matter of 10 seconds.

Christian said check fraud is increasing at a rate of about 20 percent annually. He cited statistics from the U.S. Office of Comptroller, which reported that about 1.2 million fraudulent checks are written each day. Furthermore, losses in 2008 from all forms of check fraud will likely exceed $20 billion.

He said that banks and business customers need to act in partnership with one another to effectively control perpetrators of check fraud.

Christian suggested that businesses use high-security checks. Features include watermarks, heat-sensitive ink, fluorescent fibers, bold print and microprinting.

He added that companies should establish internal controls. That includes a separation of duties to ensure that check writers do not also reconcile accounts, updating checking account signatures regularly and requiring dual signatures.

Above all, Christian advises that businesses and consumers must take the necessary precautions to protect themselves from fraud.

"Check fraud is primarily a crime of opportunity," Christian said. "Reduce the opportunities and you will reduce losses."

bblackwell@semissourian.com

335-6611, extension 137

Were you there?

Does this affect you?

Have a comment?

Log on to semissourian.com/today