Fight Check Fraud with Accounting Automation

Accounting automation is the best defense against check fraud, the most common form of financial deceit. The Association for Financial Professionals found that 63% of organizations reported fraud attacks and/or attempts in 2024.

Check fraud wreaks havoc with a B2B company’s finances and erodes trust between buyers and sellers.  This blog explains how accounting automation, especially regarding your AR (accounts receivable) process, helps you and your customers steer clear of check fraud.

Secure payment methods

Check fraud began to skyrocket in 2020 and ‘21, when the government distributed checks to support families and small businesses during the pandemic. Since then, check fraud has skyrocketed by 385%. Many of these checks were intercepted and stolen through transit, a big reason why mail theft complaints went from less than 60,000 in 2018 to more than 250,000 in 2023.  

A surefire way to avoid check fraud is to stop mailing and accepting checks. However, 91% of companies responding to AFP's 2025 survey said they still use checks, an increase from 75% in 2023.  One reason is some sellers give don't their buyers any other choice.  

AR automation enables customers to pay balances through ACH (Automated Clearing House) and credit cards.   

These options are speedier than checks, getting you paid faster, and safer too. ACH payments are made electronically and can’t be stolen out of a mailbox. They’re also equipped with data encryption, providing you and your customers with a strong layer of fraud protection. ACH payments are also easier to track than checks. 

Credit card payments are secure because their data is also encrypted and tokenized. Like ACH, card payments are also made digitally, and businesses can track and dispute any unauthorized payments. 

AR automation reconciles these paid invoices in a secure, digital platform, so you don’t have to worry about checks getting stolen or misplaced even if they do arrive on time. Aside from automation and reconciliation, Bill360 processes payments from ACH and credit cards, saving you up to $2,500 in swipe fees. That way, you reduce costs while also securing your and your customers’ finances. 

Not every case of check fraud is tied to theft. Paperhanging occurs when businesses or people bounce checks on purpose. David J. Turner, CFO of Regions Financial Group, which reported $153 million in check fraud losses through the third quarter of 2023, said it takes his bank up to 60 days to learn it accepted a bad check.  

Paperhanging is impossible, however, if you encourage customers to pay through ACH or with credit cards.

Simplified payment process 

It’s difficult to reduce and/or eliminate check fraud if you’re not giving your customers multiple ways to send you payments. 

Bill360 enables your customers access to self-service portals where they can manage and set up digital wallets. Rather than having to re-enter information when paying by ACH or card, customers enter their portal, go to their wallet, and make a payment by simply clicking a button.

You and your customers can also set up AutoPay, where you simply draft recurring fees from their digital wallet. Bill360 gives customers the opportunity to pay immediately by embedding "pay now" links in an invoice email. 

These features simplify the payment process, safeguard financial data, and let customers know you’ve invested in their security and success. 

Fight check fraud with Bill360

AR automation from Bill360 is catered exclusively to help B2B companies and their customers. Through features like AutoPay, pay now, and secure, customer-managed digital wallets, Bill360 greatly reduces and often eliminates check fraud and helps cement trust between buyers and sellers. And our all-one-in embedded platform not only automates your AR process but also processes payments and reconciles invoices. 

Learn more about Bill360 by visiting our video library page. You can see our platform in action and hear testimonials from real Bill360 customers.

FAQ

What are some common types of check fraud?

Check washing is when checks are stolen, chemically altered, and then made out to a different payee and often a higher amount. Another example is paperhanging, where people or companies bounce checks on purpose, aware that check fraud often goes unnoticed for weeks.

How can accounting automation prevent check fraud?

Accounting automation greatly reduces and can even eliminate check usage - and thereby fraud - by making it easy for customers to pay you digitally with credit cards and ACH.

Why do some companies continue to pay with check?

A primary reason is they don't have many options. Accounting automation from Bill360 provides your customers payment methods that are far more secure and speedier than paying by check.