In today's rapidly evolving world, the resurgence of old-school scams, such as forgery and alterations, poses significant business risks. For example, the recent “postal theft ring," a case involving seven U.S. Postal Service employees charged with conspiracy and mail theft, serves as a stark reminder of the vulnerabilities of simply doing business. Additionally, the shift to hybrid and remote work has expanded the landscape for possible attacks, creating more opportunities for theft.

Despite technological advancements, some of the most common scams may pose the greatest threats, exploiting a false sense of security for business owners. This trend highlights the need for heightened awareness and proactive measures to prevent such incidents.

Educating Clients on Emerging Risks

As trusted advisors, consider talking with your business customers about the risks associated with forgery and alterations. You can help your clients mitigate such risks by building awareness of common schemes, encouraging clients to take proactive risk management measures and ensuring they have adequate insurance protection in place.

Here are six key actions to emphasize with your clients:

1) Stop putting checks in the mail. Encourage clients to use electronic payment methods whenever possible. Checks sent through the mail are vulnerable to theft and alteration. If you must send a check in the mail, use post office lobby mail slots instead of a mailbox. Highlight the benefits of secure online transactions and direct deposits.

2) Use fraud-resistant checks. Inform clients about checks that are designed to resist alterations. These checks include security features, such as the use of special inks and paper. They also include chemical voids that will void the check if a chemical is used on the paper, and security ink that will distort if chemicals touch the check. These security features make it difficult for criminals to modify the information. Educate them on the availability and importance of using such checks.

3) Use dark “indelible" ink. Black gel inks or oil-based ink can't be easily altered, erased or covered.

4) Use positive pay or a signature verification system. Most banks offer positive pay, a fraud detection service that matches a company's issued checks—dollar amount, check number, account number and payee—to the checks presented for payment.

5) Stay vigilant. Remind clients that traditional paper scams are making a comeback. Criminals are taking advantage of the perceived security associated with methods like U.S. mail. Encourage them to be mindful of these risks and adopt modern, secure practices to protect their financial interests.

6) Educate on the risks. Many clients may not fully understand the risks associated with forgery and alterations. Provide them with clear, concise information about how these scams work and the potential financial impact. Education is key to preventing these crimes.

In addition to helping your clients better understand these risks, here are three ways you can advise your clients with respect to mitigating such risks:

1) Proactive risk management. Implement robust risk management strategies, including the use of secure payment methods, regularly monitoring accounts for suspicious activity, and educating employees about the risks of forgery and alterations.

2) Early reporting of claims. Report any suspicious activity or potential claims as early as possible. Early reporting can help mitigate losses and expedite the claims process.

3) Regular communication and comprehensive coverage. Maintain open lines of communication. Understand emerging risks and best practices for preventing fraud. Secure crime coverage at the appropriate limits. For crime coverage, it's important for businesses to consider robust standalone policies. While some businesses may obtain necessary coverage through endorsements, an increasing amount require higher limits and broadened coverage available only through standalone crime policies.

Experienced independent insurance agents are uniquely positioned to help their clients mitigate risks by identifying exposures, putting the right coverages in place, and having regular conversations about risk mitigation. Be sure to partner with carriers that offer expertise, guidance and coverage, such as The Hanover's management liability product, Hanover Executive Advantage Pro, to ensure comprehensive protection and resilience.

As an independent insurance agent, your role in educating your clients about the risks of forgery and alterations is more important than ever. And by working with a carrier like The Hanover, you gain the benefit of a convenient online quote-and-issue capability for stand-alone crime coverage. And through The Hanover's TAP Sales system, you have the ease and flexibility to provide small businesses with a standalone crime policy, include coverage as part of a broader management liability package, or pair it with standard lines for an account-focused solution.

From inventory theft to falsified expenses, payroll fraud and more, no business is immune to employee theft. Independent agents can identify effective crime insurance solutions, putting their business clients in a better position to withstand and prevent employee theft. Stay proactive, stay informed and continue to be the trusted advisor your clients rely on.

Eric Schuler, president of management liability, The Hanover.