Fraud targeting businesses in Colorado continues to rise, fueled by increasingly sophisticated criminals and vulnerabilities in traditional payment methods. From check fraud to ACH fraud to phishing and business email compromise, Colorado businesses of every size are at risk.
Understanding today’s biggest threats—and how to prevent them—is essential to protecting your company’s finances, reputation, and operations.
Check Fraud: Still One of Colorado’s Biggest Threats
Despite the growth of digital payments, paper checks remain widely used in business transactions. In fact, checks are used in one out of three B2B transactions, and 63% of organizations have experienced check fraud in recent years.
Common forms include
- Stolen checks taken from mail or business locations
- Forged signatures
- Counterfeit checks
- Altered checks, where payee names or amounts are changed
How to protect your business from check fraud
- Secure unused checks in locked locations
- Mail checks from secure USPS locations or through a mail carrier—not unattended drop boxes.
- Use security envelopes and tracking options when possible.
- Reconcile accounts daily to spot unauthorized activity early.
- Reduce check usage by shifting to ACH or online payment systems.
- Enroll in Positive Pay to automatically catch unauthorized check items before they post.
ACH Fraud: Fast, Silent and Growing in Colorado
ACH fraud is on the rise in Colorado and nationwide. Criminals only need an account number and a routing number to initiate unauthorized withdrawals. Even more concerning, fraud often begins with phishing or a compromised email account, targeting accounting staff or executives.
This type of fraud stems from:
- Phishing emails designed to steal login or banking credentials
- Business Email Compromise (BEC), where criminals impersonate companies to divert payments
- Malware installed on business networks
Because ACH transactions clear quickly, funds are often difficult to recover.
How to protect your business from ACH fraud
- Monitor accounts daily and set up ACH debit alerts
- Use strong cybersecurity practices: updated antivirus, software patches, strong passwords, and secure Wi-Fi.
- Enable multifactor authentication on banking platforms.
- Train employees to be suspicious of unsolicited requests for bank or login information.
- Enroll in Positive Pay to automatically catch unauthorized ACH and check items before they post.
Phishing & Imposter Scams: The Gateway to Financial Loss
Phishing remains one of the most common entry points for all forms of business fraud. Fraudsters increasingly impersonate:
- Vendors asking for updated bank details
- Executives requesting urgent wire or ACH transfers
- Banks or service providers asking to “verify your account.”
In many ACH fraud cases, criminals begin by sending phishing emails crafted to trick employees into sharing credentials or financial information.
How to protect your business from phishing
- Train all employees, especially those in finance, on how to spot suspicious emails.
- Encourage staff to independently verify any email requesting payment changes.
- Use email security tools and spam filters.
- Implement least‑access permissions so only authorized staff handle financial accounts.
Your Best Defense: Positive Pay
Positive Pay is one of the most effective fraud‑prevention tools for businesses.
Redstone Bank’s Positive Pay service:
- Verifies every check or ACH debit against your pre‑approved list
- Flags suspicious items before they ever post to your account
- Gives your business time to approve or reject questionable transactions
Given the rise in both check and ACH fraud, Positive Pay is no longer optional—it’s essential.
Fraud is evolving, but so can your defenses. By combining secure internal processes with tools like Positive Pay, regular account monitoring, strong cybersecurity, and employee education, your business can significantly reduce its risk.
If you’d like help strengthening your fraud‑prevention strategy, Redstone Bank’s Treasury Management team is here to support you. Contact us today.