| Fraud - it's out of control. Each year, U.S. | | | | 3. Use secure output-management systems to |
| companies lose more than $600 billion to fraud, | | | | provide controls and audits to help prevent item |
| with counterfeiting and document fraud making up | | | | theft or unauthorized use. The system should |
| more than two-thirds of that, according to the | | | | record every item issued and identify the |
| world's largest fraud prevention. organization, the | | | | authorizing individual at issuance. Ideally, |
| Association of Certified Fraud Examiners. | | | | information from the issued documents should be |
| Business documents, financial documents, birth | | | | forwarded to downstream authentication |
| certificates, identification cards, licenses, motor | | | | systems. |
| vehicle titles, prescriptions, college transcripts, | | | | 4. Use authentication devices. Positive Pay and |
| tickets and passes for events - any document of | | | | image-comparison services, as well as bar codes |
| value is at risk. With law enforcement focused on | | | | and data encryption solutions, help ensure that the |
| violent crime and homeland security, however, | | | | information matches up. Identity security or |
| there are limited government resources to | | | | biometric solutions such as fingerprint, retina, iris |
| address the problem of fraud prevention. The | | | | and face recognition, take secure documents to |
| challenge of reducing fraud and its associated | | | | the next level. |
| losses falls primarily on the organization that owns | | | | 5. Establish limits & reconciliation systems. Establish |
| the documents. | | | | limits on check amounts being disbursed; require |
| If you've followed the advice of experts, you've | | | | special approval for higher amounts. Compare |
| integrated multiple security features into vital | | | | purchase orders to packing slips, and inventories |
| documents and standardized their design to make | | | | to disbursements of printed statements. Secure |
| them readily recognizable to those who use and | | | | stock for checks and other vital documents. |
| accept them. However, it's important to recognize | | | | Reconcile all transfers. |
| that the physical features of your documents are | | | | 6. Know your people. Review permanent and |
| only half of an effective fraud defense. It's critical | | | | temporary hiring procedures to help assure you're |
| that you also establish secure document | | | | attracting reliable people you can trust to manage |
| management for controlling document issuance | | | | your vital business documents. Background checks |
| and handling. | | | | are an important part of this process. Then |
| Consider these steps for more secure document | | | | provide your staff with proper credentials that |
| management: | | | | enable you to validate who they say they are. |
| 1. Securely store and audit important documents. | | | | 7. Finally, choose reliable and well-known document |
| Protect your documents from theft by securing | | | | management services. Thoroughly evaluate |
| stock in locked rooms at all times, and by | | | | potential vendors. Determine: Do they have |
| recording and auditing document control numbers. | | | | secure facilities? Are their operators trained to |
| Limit access to materials at all stages: production, | | | | follow security protocols? Do they have controls |
| shipping, receiving, storage and use. Monitor your | | | | in place to prevent fraudulent orders? Do they |
| document production facility and audit regularly. Be | | | | have the expertise to anticipate new forms of |
| sure incoming shipments of checks, prescription | | | | attack and develop new defenses? Do they |
| pads or other valuable documents are not | | | | understand the needs of your organization and |
| identified on the shipping labels or containers. | | | | the possible ways your documents might be |
| 2. Separate financial responsibilities. In matters of | | | | compromised? |
| money, make sure at least two separate groups | | | | Fraud is an ongoing challenge to meet, but if you |
| of people are responsible for payment and | | | | follow these seven steps, you will be well on the |
| reconciliation. | | | | way to thorough fraud prevention. |