Fraud Risk Management: How Smart Businesses Use Treasury Services to Block Fraud
March 6, 2025
By Joel Risser, VP – Treasury Services Manager
Fraud is no longer just an operational headache; it’s a growing threat that can undermine your business’s financial health and reputation.
As a Treasury Management Officer, I work closely with businesses to combat fraud by implementing effective solutions that don’t just respond to threats but actively prevent them. The good news? Treasury Management tools have evolved to provide smart, tailored solutions that can help your business stay ahead of fraudsters.
Learn more about how to enhance fraud risk management in your company when you work with Texas Gulf Bank.
Understanding the Scope of Fraud Risk Management
Fraud comes in many forms: check fraud, wire fraud, ACH fraud, phishing schemes, and even employee-related incidents. As fraudsters get more sophisticated, they target vulnerabilities across every financial touchpoint.
A single incident can result in substantial financial losses, regulatory issues, and reputational damage. That’s why implementing a fraud risk management program should be a top priority for every business in the Southeast Texas Gulf Coast region – no matter your size or industry.
Treasury services offer robust tools to address fraud at its core. By understanding your options and taking proactive measures, you can significantly reduce your risk exposure.
Treasury Services Designed to Protect Your Business
Treasury Management is no longer just about facilitating transactions or managing cash flow – it’s about safeguarding your assets. Here are some of the most effective tools smart businesses can use to block potential fraud.
1. Positive Pay: A Line of Defense Against Check and ACH Fraud
Check fraud is a threat to businesses that rely on mailed payments. Positive Pay is one of the most effective fraud prevention tools available. It works by matching checks and ACH transactions presented for payment against a list of authorized transactions your business submits in advance. If there’s a mismatch, the transaction is flagged for your review before funds are released.
This simple yet powerful service has helped many of our business customers avoid substantial fraud losses. For example, one client recently intercepted a counterfeit check for over $20,000. Thankfully, this disaster was averted thanks to Positive Pay.
2. Dual Control for Online Wires and ACH Transactions
Wire and ACH fraud often occur due to compromised credentials or insider threats. Dual control provides an additional layer of security by requiring two separate individuals to approve any outgoing business wire or ACH transaction. This ensures no single person can authorize a transfer, making it far more difficult for fraudsters to succeed.
Additionally, remember that established wire and ACH limits are there for your own risk mitigation. If someone were ever to take over your credentials, these limits would act as a safety net to prevent catastrophic losses. While they might seem restrictive at times, they are one of your most effective safeguards against fraud.
3. Fraud Monitoring and Alerts
Today’s treasury systems can monitor real-time account activity and trigger alerts for unusual or high-risk transactions. These alerts empower you to take immediate action before funds leave your account. Many businesses find peace of mind knowing there are enhanced tools to support fraud prevention and detection.
4. Account Reconciliation Tools
Reconciling accounts daily or weekly might seem tedious, but it’s critical for identifying unauthorized transactions. Treasury services include automated reconciliation tools that make this process seamless. By spotting discrepancies early, you can limit the impact of fraudulent activity.
5. Secure Online Banking Platforms
Sophisticated treasury management systems come with secure online banking platforms that feature multi-factor authentication (MFA), user access controls, and activity logs. These features help protect your accounts from unauthorized access and ensure complete visibility into who accesses your financial data and when.
Proactive Steps to Reduce the Risk of Fraud
Using the Treasury Services from a financial institution like Texas Gulf Bank is just one part of the equation. Smart businesses adopt a proactive mindset when it comes to fraud risk management. Here are a few best practices to incorporate into your strategy:
- Educate Your Team: Many fraud schemes, like phishing and social engineering, target employees. Regular training can help your team identify red flags and respond appropriately.
- Review Vendor Relationships: Make sure your vendors follow strict security protocols when handling your payments and financial data. Consider implementing vendor management software to track and assess their practices.
- Audit Internal Controls and Processes: Insider fraud is an often-overlooked risk. Perform regular audits of your internal processes to identify gaps in controls and tighten oversight when necessary.
- Stay Current on Fraud Trends: Fraud tactics evolve constantly. We recommend partnering with your bank to stay informed about new schemes and emerging threats to help manage fraud and prevent future fraud incidents.
Why Partner with a Treasury Management Expert?
At Texas Gulf Bank, we see our role as more than just service providers. We’re your partners in protecting your financial health. When you work with our Treasury Management team, you gain access to tools, insights, and personalized strategies designed to fit your unique business needs.
Fraud isn’t going away, but with the right treasury services and a strong fraud prevention strategy, you can minimize your risk and protect your business from harm.
Don’t wait until an incident happens – reach out to your Treasury Management Officer today to discuss how we can help you implement a smarter, stronger fraud prevention plan.
Let’s Work Together to Strengthen Your Security Posture
Fraud prevention is a shared responsibility, and we’re here to support you every step of the way.
Contact me or any member of our Treasury Management team to learn more about how we can help safeguard your business. Together, we can implement effective fraud risk management for your company, making fraud one less thing for you to worry about.
Services offered through the Treasury Services Department are fee-based and subject to approval.